SIMULATION WRITEUP

Hijab Fatima-09361

INTRODUCTION
In the beginning we were told about the order of the business. The order was
choosing 4 design options and forecasting the total demand of their two mobile
phone models. They shared some information about the two models that they
wanted to produce that year.

Two Models of mobile phone are:

Model A. Model A was a basic model and team members were confident about
their forecasting accuracy on it.

Model B. It’s an upgraded version of Model A. It’s a high-end model with sleeker
design and it’s faster than model A. So, the margins are high of this model.
Problem: At the end of year the price of the model will be needed to mark down
so the remained units will be sold.

There are four options given that will help in making the product line
competitive. We were supposed to select from those 4 options in order to reach
Maximum Profitability. We could choose one to all four of the options depend
upon how we interpret the data. As we started selection the options they were
showing different results on price and demand of our product. We also got the
consensus estimate of the team members.
Changing features were changing the forecasting of sales as forecasting team
members forecasted the demand of every feature. The cost too was changed as
we changed the features. So forecasting and cost were effective of the changing
features.

DECISION MAKING
We had to take a few decisions while doing it:

• We had to select among the features i.e. which features were supposed to be
chosen and which features were supposed to be omitted.
• To opt if joining marketing conference is a good idea or not.
• We had to forecast every product.
• Maintenance of inventories of the products.
• Other decisions like planning of the course, selling, suppliers, procurement
etcetera
 SIMULATION WRITEUP
Hijab Fatima-09361

LEARNING EXPERIENCE

We had to choose the features that would make us the maximum optimal profit.
For this we had to consider the standard deviation as well. The more the
standard deviation the lesser our data would be precise. So we had to select
features, which had minimum standard deviation collective. We also spent two
million dollars on marketing, which facilitated us to understand the estimated
demand beforehand. We also had to choose suppliers and procurement and
made decisions on lead-time, cost of setting up and models, capacity and quality.

The learning outcome is that we should consider forecasting since the demand
can alter. If we want to boost our sales, we should select features according to
what our customer/market wants/demand. In order to meet our demand when
we run out of stock, we should give orders to closer suppliers. Marketing is
important and so is market research since it provides you with expected demand
beforehand.

It teaches us how to build a supply chain that is cost efficient and efficient. It
helped us understand how else to determine the methods of forecasting and how
to create a production plan.

PROFITS

Year1: $34,038,000

Year 2: $36,359,060

Year 3: $17,961,000

Year 4: $35,366,800