Little Field Simulation Case
Operations 202 Little Field Simulation Report Little Field Simulation Game is mainly about the inventory management and optimization problems which are occurring in a factory. Since the last report, we tried to generate more profit and took some actions to beat our competitors in market. Firstly, we examined our demand and completed job counts to check our productive capacity and inventory.
It demonstrated that we were producing faster than our capacity and market had increasing level.
Therefore; we decided to change our reorder quantity and reorder point in order to produce more at the same time and meet the demand. Secondly, we analyzed our stations’ efficiency and utilization to optimize our productivity process. So that, we demanded more machine for station two to lower our production time and meet the terms of contract in limited days. Furthermore, we seek time delay between the stations and we convinced that station two’s main focus should be on the productions that coming from station one, besides we were in the better production contract level.
Our recent contract was limiting our delivery time for three days for 750$.
We were excess our demand for shorter durations; therefore; we decided to improve our contract which was limiting our delivery time for one day worth $1000. Towards the last days, we realized that focus change operation on station two turned down a mistake and we began to lose production productivity which caused by excessive supply from station three. Therefore, station two’s utilization became insufficient and we started to delay our deliveries which caused loss by contract.
Reacting lately on the situation, we lost big amount of money and changed our station two’s main focus to a balanced level between board stuffing and tuning. Lately, we couldn’t generate more profit than our competitors and we reacted lately towards situations. Also, we find out that changes in delivery time cost us more than what we generated from production so that we could have changed our reorder point and reorder quantity back to the lower levels if we react on time.
In conclusion, we consolidated our knowledge on inventory management and analyzed how production strategy and utilization affects delivery process.
As a group, we think that we understand the dynamics of game however; acting for longer term plans. We planned our actions for long durations therefore we controlled our system occasionally. Success with the first plans led us to the complacency and we started to react lately towards situations and it caused an irreversible damage by errors one after another. We learnt that strategic control of inventory is a substantial matter for success of production with utilization towards demand.