Littlefield Technologies Simulation

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             It was noted the queue for station 2 was not effectively balancing the flow from stations 1 and 3. We took control over the factory at a point when there was a backlog at all stations. Even assuming the correct capacity at each station, we were still left with a backlog in the system. Therefore, we changed the priority at station 2 to favor station 3. This was done so that the final step of the process (final verification of the products) has priority before the initial verification. We hypothesized that in doing so, we will efficiently decrease the backlog in the system. We noted that through increased capacity (purchased machines for stations 1, 2 and 3) and through switching station to preferentially process the input from station 3, the backlog was reduced quickly which allowed us to decrease the delivery times from approximately 7 days (when we took over the control) to 0.8 days. This, in turn, allowed us to move to the contract which required delivery in maximum 24 hours, which maximized our profits.
             Our approach was effective. Product began efficiently moving through the plant and order lead time was being met on most orders. If we could do the simulation again we would purchase new machines for all three stations at the onset to allow the backlog to clear quicker and the company to begin realizing profits earlier. .
             Inventory Management.
             Prior to the start of the simulation we calculated the current reorder point and quantity. We determined the amounts were too low to meet customer demand based on the number of stock outs and number of orders completed each day. In response, we updated the reorder point and quantity to a level consistent with the calculated average demand and stock outs ended. We utilized calculations from OM class, namely optimal Q calculation and ROP calculation. After the plant began operating efficiently, we noted inventory levels were staying higher than anticipated.