Contemporary decision making
A machine shop produces many parts but their biggest seller is the Deluxe Jig. |
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Marketing only accepts orders in multiples of 50. Past demand data is: |
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Order Amount |
Number of Orders |
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50 |
33 |
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100 |
46 |
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150 |
84 |
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200 |
74 |
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250 |
32 |
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The Deluxe Jig goes through a four step process with the following yields: |
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Cutting |
µ = |
96.6% |
σ = |
1.00% |
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Grinding |
µ = |
93.4% |
σ = |
2.50% |
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Lathe |
µ = |
98.9% |
σ = |
3.00% |
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Polish |
µ = |
98.4% |
σ = |
1.00% |
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Note: The yield cannot exceed 100% |
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The production lot size is 15% more than the order size |
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Design a simulation to determine what percent of the orders satisfy the order amount (10 points) |
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Provide data analysis to verify that you tested the model validity (5 points) |