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 dierent 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 conrmed. On the other hand, if the product is in stock, it is retrieved from the warehouse before conrming the order. Then the process continues normally. After conrming 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. 2 With respect to the above process, use the following report format and provide necessary discussion under each section: 1. Descriptions of System - Describe the system - (If any) Explain any problem(s) in the system (e.g. causes of the problem and its (potential) eects 2. Simulation Objective(s) - State the objective(s) of carrying out your simulation project 3. Experimental Factors & Responses - Discuss the potential experimental factors of your simulation study. - Discuss the potential responses and explain how they should be presented. 4. Model Contents & Level of Details - Show which of systems components will be included/excluded in your simu- lation model and explain why they should be included/excluded. - Describe the appropriate level of details for the included components. 5. Models Process Map - Diagrammatically represent your conceptual model in a form of a process map - Make sure that the constructed process map is representative to the model contents and level of details. 6. Assumptions & Simplications - State all assumptions are made to abstract the system in the conceptual model. - Describe any simplications are made during the abstraction process.

Answer 1

As stated in the problem,

Product stocks are not readily availble:

in order not to have any orders rejected due to the shortgae of stock, products need to be manufactured. Then order handling begins.

To manufacture these products, it requires certain raw materials, for which they have identified 2 suppliers who supply these. After the raw materials received, product is manufactured and order is confirmed.

Product is available:

Retrivd from the warehouse, confirms the order.

Post odrer confirmation process:

Shipment address for customer is received, order is shipped to that delivery location. Sales invoice is released to customer, and payment is receive accordingly.

Order is archived and process completed

It is talking about the order management system. Right from order receipt to fulfillmennt and payment (Order to cash)

It has got 2 processes - If the stock is not available and stock is availble

Stock is not available : There is a chance for loss of sales as you are receiving orders, but not enough stock to fulfill that

Stock is avaiable : You may have excess stock, so need to account for inventory holding