Question: Australasian Muskelon Automotive Company (AMAC) manufactures a small electric car that is supplied to customers throughout the world. The company buys most of its

Australasian Muskelon Automotive Company (AMAC) manufactures a small electric car that is supplied to customers throughout the world. The company buys most of its required components from local suppliers. AMAC also produces a few critical components itself. To ensure smooth production, the components stock is maintained. Once a 

batch of cars is manufactured, they are held in stock for despatch

 

Australasian Muskelon Automotive Company (AMAC) manufactures a small electric car that is supplied to customers throughout the world. The company buys most of its required components from local suppliers. AMAC also produces a few critical components itself. To ensure smooth production, the components stock is maintained. Once a batch of cars is manufactured, they are held in stock for despatch to customers. Orders received from customers are despatched the week after they are received, and production is also planned on a weekly basis. Thus, when all is running well, AMAC should have an order backlog of one week, and it should be possible to meet this from stock. Stockholding is planned by forecasting the order rate for the next period, thus AMAC tries to hold three times the forecast of the next period's orders. Currently, AMAC is facing moderate competition from a few other traditional companies. AMAC management is interested in conducting a SSM study to ensure their survival against predicted sophisticated competitors in ten years' time. As a preliminary step of the study, you are requested to propose the following: Express the problem situation from a SSM study point of view. (Note that you are free to choose any aspect of AMAC that you think appropriate for survival of the company) Propose a root definition for a SSM study. Explain the reasons for the root definition as well as all CATWOE components. Build a conceptual model for the study and define its 3E's for monitoring and controlling. Propose the SSM stages you think appropriate for the study. Justify your proposal. References can be used, some of the OR/MS journals like below; European Journal of Operational Research Interfaces Journal of Operational Research Society Management Decisions Management Science Omega : International Journal of Management Science Operations Research Operations Research Letters Asia-Pacific Journal of Operational Research Task 1 SSM Clear Problem Situation Root Definition and CATWOE analysis of the problem Conceptual Model and 3E's Discussion of all SSM Stages and providing reasonable justifications In your report, you should research each problem scenario and state your position (either agree or disagree with the decision currently implemented given the facts and assumptions stated in the problem description). Discuss the evidence you collected to support your position.

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Answer Task 1 SSM Clear Problem Situation The problem situation at Australasian Muskelon Automotive Company AMAC centers around the need to ensure its survival and competitiveness in the face of predi... View full answer

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