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Littlefield Technologies Simulation Solution Essays On Success

...LittleField (1) What was your initial strategy and how/why did you change your strategy during the game?. (2) Which concepts that you learned in this course did you apply in making your decisions? Explain. (3) What did you learn from the game? General Strategy Getting into the game our strategy was to identify the bottleneck in the process and maximize its utilization. We were aiming to balance our stock so a new stock will arrive every 4 days, and the current stock will not run out (but will get close to 0). On the contract level, we wanted to examine by how much we can cut the lead time in order to improve the contact. About 10 “game days” into the simulation, we realized there’s no cost of stocking, yet there’s a cost for the shipment. At that point we decide to increase the order size rapidly throughout the game as much as we can, till we have enough stock for the last 100. Since the interest on the money was so low (10% a year), we realized it won’t be a dramatic factor we need to take into consideration. For example, if we had started the game with $1M and kept it, we would have addition $100,000 (not a significant amount as we estimated our final revenue to be around $1.2M). Since most of the gave we gain interest on a revenue much lower than $1M, all our decisions ignored the potential interest we could receive by saving cash by ordering less materials or not buying machines. We also saw no point in reducing the lot size to below 60...

...continue to hit close to 100% for the next few days. We had thought that we could tide through it like before without the need of an additional machine. However, this time round, a bottleneck formed at station 1 and the revenue started to drop quite severely. Therefore, we decided that an additional machine is needed at station 1 to prevent further drop in the revenue. However, the purchase of an additional machine did not salvage our situation as the queue size at station 1 was too large. During this period, a lot of income was lost due to our production not being able to meet the 3 days of lead time. Our revenue only stabilized on day 130 for 2 days before dipping again. This time, the bottleneck transferred to station 3 and the queue has risen drastically to about 600 jobs. Therefore, we made the decision to purchase another machine for station 3. With this, our revenue finally stabilised at day 139. In the following days, we continued the strategy of monitoring the revenue, as well as the stations’ utilization and queue size, before deciding whether to purchase additional machines. Following this strategy, we acquired a total of 4 Machine 1s, 2 Machine 2s and 2 Machine 3s. As the demand fell towards the end of the game, we decided to sell off machines at the under-utilized stations so that we could increase our revenue from the sales of the machines, as well as gain more interest, and increase our ranking before the game ends. Therefore,...

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