Detailed cost-benefit analysis with actual dollar values


Problem: During the 2nd run of Littlefield Technology simulation on day 100, your factory has 3, 2, and 2 machines at workstations 1, 2, and 3 respectively. The average utilization of workstations 1, 2, and 3 are 100%, 80%, and 70% respectively on that day. The chosen contract is the one that requires a lead time of one day. The average lead time on that day is 0.8 days and the average revenue per job is $1000. Please answer: What would be the optimal decision at that moment to maximize the overall cash position? Would you add capacity at all? If yes, to which workstation(s)? If not, why? What other decision should you make? Please include a detailed cost-benefit analysis with actual dollar values. Feel free to refer back to the simulation documentation or your simulation history for reference.

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Finance Basics: Detailed cost-benefit analysis with actual dollar values
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