Read the case study description below. Develop and run Arena simulation model for the current system. Analyse the results and then modify the system to identify optimal level of resources required.

Operations Management

Individual report & simulation model

Read the case study description below. Develop and run Arena simulation model for the current system. Analyse the results and then modify the system to identify optimal level of resources required.

Your report should include the following:

1. Introduction with a brief discussion on the suitability of computer simulation and Arena software to address the case study problem. Justify. (10 marks)

2. Analysis of the current system performance (you need to analyse not just report the results). (20 marks)

3. Experiments with the capacity of the system. Each experiment need to be clearly justified and results analysed to understand the impact of the proposed change and the performance of the new system. Only make one change to system at time. (40 marks)

4. Recommendation and discussion on the implications of the recommendation. (10 marks)

Case Study

You have recently started a new job as a Junior Process Analyst in a large hospitality business. Your manager has asked you to investigate one of the branches in their chain of coffee shops. The branch has received negative customer feedback and the sales have been declining. Your manager wants to understand if there are any underlying process related issues in the branch and how these could be resolved. Your manager wants you to:

1) Gain understanding of the process structure (completed)

2) Measure and collect relevant data from the process (completed)

3) Build a model of the process using Arena simulation software

4) Simulate the current process and analyse the results to gain understanding of its performance

5) Experiment with the capacity of the system to identify how the process could be improved

6) Write a report to your manager summarising your findings (+/- 1,500 words)

You have completed Steps 1 & 2 and the information you have collected is summarised below.

London Airport Terminal 2 branch of Coffee Adventures Shop is located at airport departure lounge.

The key information about the process is as follows: information is as follows:

Service process has the following steps:

1) Take customer order and payment Tria(0.5,1,2) – requires one cash machine and one employee,

2) Deliver the order to the drink machines Constant(0.5) – requires one employee,

3) Make the purchased drink Tea: Tria(0.5,1,3), Coffee: Tria(1,2,6) or Hot chocolate: Tria(1.5,3,5) – requires the appropriate machine (one Tea Pot, one Coffee Machine or one Hot Chocolate Machine) and one employee, 4) deliver the drink to the customer Expo(0.5) – requires one employee. Same employee completes the order
from Taking order to Delivering the drink.

5% of orders are identified as faulty after delivery to customer and need to be remade (order needs to be redelivered to drink machines by the same employee who delivered it to the customer) with delay of Expo(0.5), purchased drink remade (same drink) and then redelivered to customer with resources and times as specified earlier.

Company has one machine for making tea, one for making coffees and one for hot chocolates. Each machine can only be used to make one drink at a time.

Company has two cash machines and two employees

Company sells three different types of hot drinks; 30% of customers order Tea, 50% order coffee and 20% order hot chocolate.

Time between customer arrivals follow Expo(3) distribution

The number of customers arriving at the same time follows Poisson(1) distribution

When a customer arrives and if both cash machine and employee are idle the customer will be served immediately, otherwise the customer waits in a First-In-
Firsts-Out (FIFO) queue
Each customer orders only one drink.
All times are given in minutes.
The system starts at time zero minutes with no products present and the machine(s) idle.
Run the simulation for 120 hours.

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