Question

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.

3- Experimental Factors & Responses
- Discuss the potential experimental factors of your simulation study.
- Discuss the potential responses and explain how they should be presented.

Answer 1

- The simulation design & study is the development of a model which is an imitation of the real world system or process to analyse different characteristics of the real system.

- Here, in above case we have to simulate the whole from procurement to shipment process of the manufacturing unit thereby making us realize the effective experimental factors to be taken into the consideration and their respective responses.

- The some of the crucial experimental factors for the above case are as below.

• Inventory Management
• SCM
• Time Management
• Cost optimization
• Effective resource planning
• Financial analysis
• Market analysis
• Performance optimization
• Validity of the process. etc

- The each of the above experimental factor is associated with the effective implementation of the case requirements, so the one by one definition of them in context to the above case is as below.

1. Inventory magmt. - It ensures that the sufficient stock is maintained as inventory. It helps in making fast process decisions which in turn results in to timely manufacturing of the product.

2. SCM - It helps in analysis of the factory process from inventory to the shipping. By using simulation tools we can ascertain the comparative study between the ideal SCM ( which as per case ) & the real world SCM.

3. Time & Cost Optimization - the best practices to be employed in manufacturing process & also the best routes to be taken for the shipping purpose to optimize the overall cost with fast process time & movement of goods.

4. Effective resource planning - It is about the monitoring of the inventory process, selecting the best supplier with good quality of raw materials & optimum cost, infrastructure & machinery arrangement, Maximum utilization of the available capital etc

5. Market analysis - Research design, competitive study, business analytics etc

6.Financial analysis & performance optimization -

These step are mainly taken to improve the performance quality & reduction in overall cost that in turn enables the company to arrange maximum resources for maximum growth & Speed of process.

7. Validity of the process - By using simulation study tools & modeling a comparative analysis can be done between the ideal parameters of the process & the real parameters to ascertain the significance & validity.

* The potential responses of this experimental study make us realize the actual status of our product manufacturing & supply process with respect to the simulation model . we can estimate that what would be the approximate time needed for each activity to accomplish effectively & what would be the best strategic measures taken to optimize the overall cost.

Also, which market segment is the best fit for the company product type to generate maximum number of orders. The best shipping route & transportation strategies to timely ship the product to the destination.

Best analytics & monitoring tools to measure inventory stock & their effective utilisation & deployment.