Do you need this or any other assignment done for you from scratch?
We have qualified writers to help you.
We assure you a quality paper that is 100% free from plagiarism and AI.
You can choose either format of your choice ( Apa, Mla, Havard, Chicago, or any other)
NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.
NB: All your data is kept safe from the public.
Waiting Line
Waiting lines are a common phenomenon in businesses since they occur daily. For instance, customers may make queues as they wait to receive their orders when purchasing items. Queuing theory seeks to explain these waiting lines’ essence, nature, and scope concerning business efficiency (Majedkan et al., 2020). Waiting lines may occur when machines break down, leading to a halt of production, hence awaiting repair. Therefore, it is critical for business owners, managers, employees, and other stakeholders to understand the configuration, parts, characteristics, and impacts of waiting for lines on the business’s success. The objective of the queuing theory is to provide the framework for analyzing the features and dimensions of waiting lines.
Queuing Theory
The queuing theory seeks to help evaluate the nature and scope of the waiting lines. The reading of the waiting line and queuing theory models discusses how analytical models of the waiting lines may help managers critically analyze the costs associated with queuing and their influence on the efficiency level (Render et al., 2018). It highlights the expenses incurred in clearing the queues and the characteristics related to the waiting lines. In addition, the reading provides different formulas to determine other measurements of the waiting lines. Queuing theory helps organizations estimate the amount of money they incur within the waiting process. Before using the model, it is essential to verify that the queuing assumptions of Poisson arrivals and exponential services are accurate (Render et al., 2018).
Characteristics of Waiting Lines
The waiting line is divided into three categories: arrival or input, queue, and service facilities (Aghsami et al., 2021). These sections of the waiting line significantly contribute tits features by influencing the activities that occur at each stage. The arrival section consists of identifying the population’s size, the patterns of arrival at the system, and the behavior of the arrivals as its main characteristics. The waiting line is the next stage and is definable based on it length or the behavior it possesses. The first in, first out is one of the approaches that the management may use to solve the waiting line, hence ensuring stability in the supply of goods and time-saving. The last category is the service facility, characterized by the service system’s configuration and the service time pattern (Ingvardson et al., 2018). Combining all these features creates the queueing system and provides it with the nature and characteristics that facilitate its success and effectiveness. Understanding the structure of the waiting lines helps the business management to estimate the profitability and creates an avenue for exploitation of opportunities.
Costs Associated with the Waiting Lines
Businesses may experience a change in the cost of operation hence affecting the profitability. Some of the costs that a business may incur due to waiting lines are the costs of time wasted in the queues and repair charges. The company pays service costs to ensure customers receive the products they demand at the appropriate time. On the other hand, waiting costs are those that the firm incurs based on the time people wait for their service delivery (Shelat et al., 2022). The total expected cost is a summation of the waiting costs and the machine repair costs. It provides an array of what the company incurs to ensure that its customers in the waiting line receive their services. The total costs help the company determine the level of cost management by equipping the managers with appropriate information to measure the trade-off between the service costs and the cost of consumers’ waiting time.
A company requires personnel to repair machines that break down in their work life. The table below represents the company’s costs when machines collapse. The number of engineers that the company requires for the repair of broken machines increases as the number of machines breaking down rises (Render et al., 2018). The most cost-efficient time is when the company employs two engineers to aid in the reconnection of the systems.
Fig a: A representation of the costs incurred when a machine breaks down and undergoes repair, assuming that each mechanical engineer receives $7000 when they repair the machines
Importance of Inventory Control Methods to Maximize Effectiveness of Production and Profit
Inventory control is critical in ensuring that there is effective productivity and profitability since it utilizes different skills to eliminate long queues. Some strategies involved in inventory control include determining the minimum stock level, integrating inventory control software, implementing FIFO and FEFO techniques, optimizing inventory replenishment, performing inventory audits regularly, and determining minimum stock levels. Following these inventory control methods helps the firm avoid many activities that increase the waiting line size and inefficiency. A company that keeps records and determines the minimum stock level provides a continuous flow of the commodities; hence, customers do not waste any time waiting for the supply of resources. When the company attains the minimum stock level, they requests the addition of more inventory. However, once the company brings additional commodities units, they must use the FIFO and FEFO techniques to ensure that none of the items acquired before expires. The FIFO technique refers to the first-in, first-out rule where commodities are sold in the order the company obtains them.
Simulation Modelling
Managers and companies exploit the benefits attributable to the simulation model to determine specific aspects of the business that aid in decision-making processes regarding inventory control, maintenance scheduling, plant layout, investments, and sales forecasting. Simulation is the process by which the firm makes duplicates of the features and characteristics of a natural system and incorporates them into their operations to increase efficiency in forecasting. It is a form of network analysis that facilitates the determination of the organization’s future outlook and productivity (Wetzel, 2019). The need to understand the simulation model is directly proportional to the organization’s demand for cheaper and more accurate systems. That is the demand for such knowledge increases as the demand for efficiency rises. Simulation helps the business to predict future engagements in the main project by identifying points that may require more resources to enhance efficiency. It is critical for businesses to use simulation modelling to identify risks that they may face in the main operations.
Benefits of Using Network Analysis of Financial Data
A business that incorporates network analysis in its financial data succeeds in formulating a clear and precise structure to improve inventory control by using mathematical models to developmodeling simple designs. Moreover, the examination aids the maintenance schedule, ensuring that the required personnel successfully perform all the planned work. Another benefit associated with network analysis for most effective decisions is that it aids in plant layout and assigning responsibilities to the appropriate workers (Marqués-Sánchez et al., 2018). In addition, the firm benefits by identifying the most beneficial investment choices, thus distributing its resources wisely. Lastly, a company that uses network analysis of financial data for effective decisions forecasts its profit by projecting the number of sales it may make in the future hence increasing effectiveness. Therefore, firms must apply these analysis models like the simulation to determine the organization’s future.
The formulation of the simulation model involves seven vital stages that make it successful. The initial stage is defining the problem, where one identifies the gaps the company needs to fill. The researcher then introduces the variables associable with the holes, mainly classified into dependent and independent variables. Researchers frequently use methods of determining independent and dependent variables in their studies to investigate cause and effect correlations. The independent variable is the effect, whereas the dependent variable is the cause. Identifying the variables helps the researcher identify the materials required for simulating. The construction of the simulation model follows, and listing the specific values of the variables under test comes in simultaneously (Rosova et al., 2020). The researcher then conducts the simulation, examining the results and obtaining the best course of action for each. Simulations simulate real-world situations with mathematical models that don’t alter operations; although small simulations can be done by hand, a computer is needed for efficient use (Render et al., 2018). Computers can handle even large-scale models that simulate years of business decisions. Simulation is one of the oldest quantitative analytic methods, although it wasn’t practicable until computers were introduced.
Benefits of Using the Simulation Model
The simulation model is beneficial to the company since it is straightforward to develop since there is the presence of software that aids in its composition. Furthermore, the method assists in resolving complicated real-world scenarios that could be challenging for management to define. Additionally, the system helps solve complex real-world situations that may be difficult for managers to formulate, hence reliable in businesses (Elfvengren et al., 2021). The simulation model is critical for firms since it does not interfere with the current conditions of the natural world despite studying them and providing better solutions where they fail. However, the model is not fully efficient since it portrays some weaknesses by failing to provide optimal solutions for the existing problems. Furthermore, complex solutions are not cost-efficient since they consume excessive resources. Managers must provide all the conditions and constraints that may affect the variables they provide, which might be difficult for them, increasing the model’s inefficiency.
The Monte Carlo Simulation Model
The Monte Carlo Simulation Model is a method applied by firms to predict the chances of different outcomes of an event and relies on the repeated sampling of randomly selected participants to obtain numerical data that aids in making judgments (Arend & Schäfer, 2019). It is a five-stage model where the initial stage involves the selection of domains where the essential input variables lie. The second process is building cumulative probability distribution for the different variables identified by the researcher as the inputs. The researcher then establishes the intervals under which they select the samples, and the fourth one is selecting the random numbers. After selecting the sample groups, the researcher conducts repeated tests to generate information about the pieces and then analyzes the data to make meaningful decisions. This model is essential for firms since it provides accurate data that influence the findings in the long run.
Fig b: A representation of information that may be used to determine future outcomes using simulation analysis
Assuming that the probability of the demand for a product in the market is distributed as the table above shows, we may compute the expected daily demand for 5 days as follows
Expected daily demand = a 1Probability of i items * 1Demand of i items2
i = 0
If the random numbers of units demanded in a week are 10, 20, 21, 30, 41, and 43, respectively. Then the probability for the units consumed would be
(0.05+0.11+0.20+0.25+0.25) = 0.86 ÷ 5 = 0.17
Therefore, the actual units demanded by customers are 3 units. These are the steps in Monte Carlo Simulation: Establishing input probabilities, building cumulative probability distributions for step 1 variables, randomizing each variable’s interval, random number generation, and simulating trials (Render et al., 2018). Simulation modeling is essential for businesses since it helps managers predict the future using the available information (Pan & Zhang, 2021). For example, the firm may determine the demand for workers in the future, helping formulate effective strategies to counter the outcome if it is negative or to maximize it is positive. The methods are crucial since they provide accurate information and are not biased. Thus, all complex firms must involve experts in determining the organization’s objectives, vision, and mission using relevant models such as the Monte Carlo simulation model.
References
Aghsami, A., Samimi, Y., & Aghaei, A. (2021). A novel Markovian queueing-inventory model with imperfect production and inspection processes: A hospital case study. Computers & Industrial Engineering, 162, 107772. Web.
Arend, M. G., & Schäfer, T. (2019). Statistical power in two-level models: A tutorial based on Monte Carlo simulation. Psychological methods, 24(1). Web.
Elfvengren, K., Mohammadi, M., Kalliola, V., & Hannola, L. (2021). The expected benefits of utilizing simulation in manufacturing companies: Insights from a Delphi study. In Real-time Simulation for Sustainable Production (pp. 132-146). Routledge. Web.
Ingvardson, J. B., Nielsen, O. A., Raveau, S., & Nielsen, B. F. (2018). Passenger arrival and waiting time distributions dependent on train service frequency and station characteristics: A smart card data analysis.Transportation Research Part C: Emerging Technologies, 90, 292-306. Web.
Majedkan, N. A., Idrees, B. A., Ahmed, O. M., Haji, L. M., & Dino, H. I. (2020). Queuing theory model of expected waiting time for fast diagnosis nCovid-19: A case study. In 2020 International Conference on Advanced Science and Engineering (ICOASE) (pp. 127-132). IEEE. Web.
Marqués-Sánchez, P., Muñoz-Doyague, M. F., Martínez, Y. V., Everett, M., Serrano-Fuentes, N., Van Bogaert, P.,… & Reeves, D. (2018). The importance of external contacts in job performance: A study in healthcare organizations using social network analysis.International journal of environmental research and public health, 15(7), 1345. Web.
Pan, Y., & Zhang, L. (2021). Roles of artificial intelligence in construction engineering and management: A critical review and future trends.Automation in Construction, 122, 103517. Web.
Rosova, A., Behun, M., Khouri, S., Cehlar, M., Ferencz, V., & Sofranko, M. (2020). Case study: the simulation modeling to improve the efficiency and performance of production process. Wireless Networks, 1-10. Web.
Render, B., Stair, R., Hanna, M.E., Hale, T.S. (2018) Quantitative analysis for management (13th ed.). Pearson
Shelat, S., Cats, O., van Oort, N., & van Lint, J. W. C. (2022). Evaluating the impact of waiting time reliability on route choice using smart card data.Transportmetrica A: Transport Science, 1-19. Web.
Younesi, A., Shayeghi, H., Safari, A., & Siano, P. (2020). Assessing the resilience of multi microgrid based widespread power systems against natural disasters using Monte Carlo Simulation.Energy, 207, 118220. Web.
Wetzel, P., & Hofmann, E. (2019). Supply chain finance, financial constraints and corporate performance: An explorative network analysis and future research agenda.International Journal of Production Economics, 216, 364-383. Web.
Do you need this or any other assignment done for you from scratch?
We have qualified writers to help you.
We assure you a quality paper that is 100% free from plagiarism and AI.
You can choose either format of your choice ( Apa, Mla, Havard, Chicago, or any other)
NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.
NB: All your data is kept safe from the public.