Question: This passage below require analyis and break down In this weeks discussion, I mentioned the issue that we are dealing with at work with our
This passage below require analyis and break down
In this weeks discussion, I mentioned the issue that we are dealing with at work with our telephone representatives as it has been busier on the phones. Just when we felt we had a handle on service levels, the company recently completed a merger with another brokerage firm that added about 1 million new client accounts. This merger has caused call volumes to spike and has exhausted a few of our options to try and relieve the volumes we were dealing with earlier. In week 4 I argued that sensitivity analysis as a linear programming model would be the best model to choose. Anderson et al. state, Classical sensitivity analysis is based on the assumption that only one coefficient changes; it is assumed that all other coefficients will remain as stated in the original problem In many cases, however, we are interested in what would happen if two or more coefficients are changed simultaneously. The easiest way to examine the effect of simultaneous changes is to rerun the model (2016, p. 319). Therefore, in using sensitivity analysis to help the leadership team with this ever-changing environment we would need to run multiple analyses to determine the best case or best scenarios. After learning about simulation models, I would now argue that the best way to help the leadership team and department would be to perform what-if analyses on the changing environment that we are facing. what-if analysis involves considering alternative values for the random variables (direct labor cost, parts cost, and first-year demand) and computing the resulting value for the output (profit) (Anderson et al., 2016, p. 722). In this instance simulation analysis would be most helpful because it allows us to run those multiple simulations in one model and find the best case and worst-case scenarios from our many inputs.
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