311_Session14

# 311_Session14 - Session 16 Operations Management 1...

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Unformatted text preview: Session 16 Operations Management 1 Operations Management Session 14: Simulation Session 16 Operations Management 2 Class Objectives Discussion of the homework Presenting a new type of a problem and its solution Generate random numbers. Simple Examples Portfolio Optimization New Product Development Simulate waiting lines (may be) M/M/1 M/D/1 Session 16 Operations Management 3 A New Problem General motors is producing 3 different cars in 3 different locations. The monthly demand for each car is normally distributed with a mean of 1000 and a SD of 300. Each facility is responsible for purchasing. The cost of an engine is \$100 By not satisfying the demand of customers the company is losing \$300 per car. The holding cost per engine is \$1 per month. Session 16 Operations Management 4 A New Problem Questions How many engines should each facility purchase every month? What is the total cost of each of the three locations? A consultant suggests that the three factories will have a joint warehouse for engines and centralize the purchasing of engines for the 3 locations. How many engines should the centralized warehouse purchase? What is the total cost of the centralized warehouse? Session 16 Operations Management 5 Random Number Generator = RAND() generates a random variables between 0 and 1 ~ Uniform Distribution between [0,1] = 2*RAND() generates a random variable between 0 and 2 = 3 + RAND() generates a random variable between 3 an 4 = a + (b-a)*RAND() generates a random variable between a and b ~ Uniform Distribution between [a, b] Session 16 Operations Management 6 Generating Normal Distribution = NORMINV(probability, mean, standard deviation) If we assign probability = RAND() then...
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## This note was uploaded on 03/02/2010 for the course BUAD OPERATIONS taught by Professor Srinivasan during the Fall '08 term at USC.

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311_Session14 - Session 16 Operations Management 1...

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