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Simulaitons - Essay Example

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Summary
The prime concern for running any business is to maximize the profits. Keeping this in view, we use two limits with respect to time wherein; we plot the time of waiting at different intervals and thereupon try to keep the time well below the upper limit. In case, the time goes below the lower limit, even then it is not desirable, as this would mean under-utilization of the staff…
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Simulaitons

Download file to see previous pages... In the present case, the optimum solution is obtained for- Profit maximized ($1254) when Tables for 4=10, Tables for 2=8, wait staff=3 and kitchen staff=2. Loss of sales is least ($941). Other than the proposed alternatives, we can have two more possible solutions. There are basically, two areas of concern namely- Order taking and the ovens. The speed of operation at both these places directly influences the waiting time. Therefore, the optimal automation of these two areas would do a great deal of good even if there were initial investments to be made.
A) Given the significant downtime and relocation costs, once you have decided to reconfigure equipment to improve process layout, how do you balance the immediate production requirements versus future needs for the facility
There must always be a scope for future improvement, and so in order to achieve this, there must always be an effort for finding out better alternatives and under the present situation, the existing production must not stop, and so the best option for this would be to relocate only one thing at a time. This will ensure that current production stays unaffected and there is scope for future additions into any vacant space.
B) The "cost of delay" is an important cost t ...Download file to see next pagesRead More
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