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ITM 501 ?Simulation project

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Question;1.;The project analysis;must be on an MS Excel file which must be submitted through Blackboard.;2.;The first;worksheet will simply act as a cover page for your project. You must include;the full names and student numbers for all members of your group.;3.;For the project;problems, you may create as many worksheets as you see necessary. Make sure;to include clear and explicit explanations of your model (by referring to;specific columns/rows/cells, when necessary). This is intended for me to;understand and evaluate your work.;4.;Constructing a;simulation model is not the final goal in this project. The final goal is to;help the decision maker make better decisions. The simulation model you develop;is a tool to make this happen. So, make sure to include a written summary of;your analysis and justifications for your recommendations to the;decision maker. Imagine that this summary is intended for the decision;maker who understands the business problem, but does not necessarily know much;about simulations or anything else you have learnt in this class.;5.;The file should be;named using the names of group members. Suppose Peyton Manning, Bill Gates, and;Doris Lessing are in your group. Use at most the first five letters of the last;name and the initial letter of the first name to name the file as follows;ManniP_GatesB_LessiD.xlsx;Problem;1;As;the branch manager of a large bank in your area, you are concerned about a loss;of customers in your branch. One solution that has been proposed is to add one;or more drive-through teller windows to make it easier for customers to obtain;quick service without parking.;There;has been a debate in your branch whether to add one or two drive-through;tellers. Two drive-through tellers will definitely mean much less waiting time;for your customers, however, there are also staffing and construction costs to;be considered. You have gathered the following information. It will cost;$30,000 per year in wages and benefits to staff each new drive-through window.;The cost (amortized over a 20-year period) of building a drive-through window;is $15,000 per year. However, amortized construction costs can be cut to a;total of $24,000 per year if two drive-through windows are installed. According;to a recent article, customers who wait in long lines for drive-through service;will cost banks an average of $1 per minute (loss of goodwill).;You;worked on the arrival and service rates of customers, by analyzing the data on;regular (on-foot) customers for your branch as well as the competing banks?;drive-through windows in your area. You predict that service time is;exponentially distributed with the service rate ? = 30 customers/hour (on;average, you serve 30 customers every hour, that is, average service time is 2;minutes). The data on time between customer arrivals is as follows;Time between arrivals;Occurrences;(minutes);1;150;2;200;3;300;4;200;5;150;a);Simulate a one-hour time;period for a system with one drive-through window. Replicate the model 250;times.;b);Simulate a one-hour time;period for a system with two drive-through windows. Replicate the model 250;times.;c);What is the average queue length in both;cases?;d);Conduct a cost analysis;of the two options. Assume that the bank is open 7 hours per day and 200 days;per year.;e) Conduct;an analysis of the effect of annual wages and the waiting cost ($1/minute) on;your decision.;Problem;2;Your;first job was selling hot dogs at local softball games. Looking back, you may;think that simulation would have been a great tool to decide how many hot dogs;to order for a particular game. This year, it is your little brother?s turn to;sell hot dogs and he comes to you for advice. You decide to set up a simulation;model to help your brother.;Suppose;that you are selling hot dogs for $1 each. For the next game on Saturday, you;must decide how many hot dogs to order (170, 190, or 210), at a cost of $0.25;each. Any unsold hot dogs must be thrown away. If the game is interesting;fewer people will visit your hot dog stand. In such a case, you estimate that;demand will be normally distributed, with a mean of 140 and a standard;deviation of 20. However, if the game is a blowout, you expect more people to;visit the stand. In this case, demand will be normally distributed with a mean;of 190 and a standard deviation of 15. You predict that there is a 40% chance;that the game will be a blowout.;Set;up a simulation model and replicate it 200 times for each order size to;determine your (a) expected profit, and (b) expected percentage of unsold hot;dogs. What should you do?

 

Paper#36505 | Written in 18-Jul-2015

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