Operations Management V3.docx - Operations Management...

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Operations Management: Balancing Process Capacity – Simulation Exercise Approach for the recommended budget allocation The three stages of the car wash operation: vacuum, machine wash, and hand dry stations need an allocation of the budget of total $3M. Given the constraint and operational efficiency of each stage, the allocation of $1M, $0.5M and $1.5M in the respective stages will improve operations and maximize the overall profitability to $825 with 100% capacity utilization at each stage. The above solution is calculated taking the flow rate as the main parameter for optimizing the entire process. Hence the flow rate is considered the most relevant metric. Given we must meet the constant demand of the car wash at each station, the number of blocked cars in between any stations needs to minimize, which can be achieved when the capacity flow rate of the all the machines processed at each stage is same and maximum. The total time per unit car at each stage are: Machine Initial Capacity
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  • Fall '19
  • Ashok Kumar
  • English-language films, 1.5 m, $0.5, 0.5 m, $1.5, 1.67 Minutes

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