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In: Operations Management

Assume that if the product requested is not in stock, it needs to be manufactured before...

Assume that if the product requested is not in stock, it needs to be manufactured
before the order handling can continue. In this way, an order can never be rejected.
To manufacture a product, the required raw materials have to be ordered. Two
preferred suppliers provide different types of raw material. Depending on the prod-
uct to be manufactured, raw materials may be ordered from either Supplier 1 or
Supplier 2, or from both. Once the raw materials are available, the product can be
manufactured and the order can be confirmed. On the other hand, if the product
is in stock, it is retrieved from the warehouse before confirming the order. Then
the process continues normally. After confirming the order, the shipment address is
received and the requested product is shipped while the invoice is emitted and the
payment is received. Afterwards, the order is archived and the process completes.With respect to the above process, use the following report format and provide
necessary discussion under each section:

1. Assumptions & Simplifications
- State all assumptions are made to abstract the system in the conceptual
model.
- Describe any simplifications are made during the abstraction process.

2. Plan of Input Data
- Describe all input data which are required to code your conceptual model
into a computer model. Also, explain which of these data are deterministic
and which are probabilistic and propose probability distributions.
- Explain how to do you plan to collect these input data.

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