LE 2D C2 Strategic Position in Capacity Simulation

Your Name Aryan Nahar LE 2D C2 Strategic P Purpose Examine concept of strategic positioning and operation using data from CAPACITY simulation. Definition Strategy (p. 21) … strategy is a plan to achieve an obj Competitive Product Space (p. 2 competitive product space is a repres product attributes -- Contribution Margin sales revenue minus all variable costs

break-even analysis … calculation for determining the uni Break-Even Point The number of sales required to regain the mon break-even formula ignoring the cost of money Background In early January, Littlefield Technologie its newly developed Digital Satellite Sys premium and competes by promising to s customer will receive a rebate based on t Management’s main concern is managin undermine LT’s promised lead times and 1 Use the Lead Time Data on the "Data" tab to calculate t and small manufacturers using the DSS’s complex demand pattern predicted. Dela 𝐵𝑟𝑒𝑎𝑘𝑒𝑣𝑒𝑛 𝑃𝑜𝑖𝑛𝑡 (𝑢𝑛𝑖𝑡 𝑠𝑎𝑙𝑒𝑠)=(𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡)/((𝑆𝑎𝑙𝑒𝑠 𝑃𝑟𝑖𝑐𝑒 −𝑉𝑎𝑟𝑖𝑎

1.5 1.75 2 $60 $70 $80 COST as Inve

Position in Capacity Simulation nal effectiveness ective .. sentation of the firm's product portfolio as measured along the four dimensions or - product cost, response time, variety, and quality … s: CM = Sales Price - sum(variable costs) (Hill, Encyclopedia of Operations Management, 200

Quoted Lead Time 1.00 1.60 270000.00 $168,750.00 =AVERAGE($ 1.00 2.50 270000.00 $108,000.00 1.00 2.70 270000.00 100000.00 1.00 4.20 270000.00 64285.71 1.00 3.70 270000.00 72972.97 Lead Time from the question above. period. Investment cost per job is on the horizontal axis and actual lead Average Job Arrivals Total Machine Investment Investment/Average Job Arrival Average Lead Time YOU Day 20 YOU Day 30 10 20 30 40 50 AVg lead time vs Quoted lead time Average Lead Time Quoted Lead Time

$90 $100 $110 $120 $130 estment per Job (000)

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$Data.$D$2:$Da =AVERAGE($Data.$B$2:$Data.$B$11) =STDEV.S($Data.D12:$Dat=H85 =H87/G87 d time is on the vertical axis. Standard Deviation of Lead Time Average Job Arrivals Total Machine Investment Average Investment per Job Arrival YOU Day 10

ustomer nd

day Lead Time (DAYS) Station 1 U Station 2 U Station 3 U S1 Queue ( 1 1 1 0.46 1000 0.22 0.08 0.16 0 2 0 0 0 0 0 0 0 0 3 1 0 0 0 0.22 0 0 0 4 0 1 0.39 1000 0 0.08 0.09 0 5 0 0 0 0 0 0 0 0 6 0 0 0 0 0 0 0 0 7 4 2 0.57 1000 0.87 0.2 0.55 40.08 8 3 4 0.58 1000 0.56 0.28 0.19 0 9 2 2 0.43 1000 0.42 0.16 0.27 0 10 5 4 0.52 1000 1 0.34 0.24 83.97 11 1 2 0.95 970.99 0.3 0.14 0.39 0 12 2 2 0.38 1000 0.55 0.24 0.22 0 13 0 1 0.34 1000 0 0 0 0 14 2 2 0.41 1000 0.43 0.16 0.22 0 15 3 2 0.34 1000 0.65 0.16 0.08 1.03 16 5 2 0.45 1000 0.64 0.23 0.32 55.2 17 2 5 0.65 1000 0.7 0.32 0.3 20.66 18 3 3 0.39 1000 0.73 0.24 0.17 6.5 19 2 3 0.37 1000 0.55 0.24 0.21 1.42 20 5 2 0.33 1000 0.68 0.18 0.06 8.58 21 3 4 0.5 1000 0.86 0.31 0.46 19.2 22 2 3 0.43 1000 0.64 0.26 0.34 0 23 3 3 0.35 1000 0.65 0.22 0.09 8.75 24 2 2 0.44 1000 0.23 0.14 0.13 0 25 6 4 0.52 1000 1 0.32 0.14 85.76 26 2 4 0.61 1000 0.94 0.34 0.18 38.66 27 1 1 0.64 1000 0.19 0.06 0.1 0 28 2 2 0.47 1000 0.46 0.22 0.36 3.71 29 4 3 0.43 1000 0.67 0.2 0.33 7.41 30 2 3 0.34 1000 0.56 0.22 0.02 0 31 1 1 0.42 1000 0.28 0.12 0.16 0 32 3 4 0.39 1000 0.65 0.27 0.15 11.7 33 5 1 0.3 1000 0.46 0.1 0.01 11.96 34 3 5 0.55 1000 1 0.38 0.25 76.54 35 4 4 0.58 1000 1 0.34 0.42 32.8 36 4 3 0.43 1000 0.69 0.26 0.12 28.05 37 4 5 0.53 1000 0.93 0.35 0.34 28.63 38 4 4 0.54 1000 1 0.34 0.16 60.48 39 8 5 0.59 1000 1 0.38 0.57 95.65 40 6 4 0.9 973.75 1 0.35 0.47 244.58 41 4 5 1.17 916.6 1 0.38 0.15 269.47 42 1 5 1.37 814.75 1 0.38 0.36 158.75 Actual Job Arrivals Job Completio ns AVG SALES $ Per Job PER Day

S2 Queue (S3 Queue (KITS) 0 0 0 0 0 0 0 0 0 0 0 0 0 12.59 2.05 2.3 0 0 0 0 1.91 8.88 0 0 0 0 0.16 0 0 0 2.01 4.14 2.66 0 0 0 0 0 0 0 0.86 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2.48 0 0 0 0.55 2.44 0 0 2.51 8.8 2.76 1.11 0 0 0.86 0

0 0 0 0 0 0 0 0 0.01 0 3.96 0 2.4 0 0 0