Nt1310 Unit 1 Case Study

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According to Station 1’s graphs below (Graph 1 & Graph 2). For the first fifty days, the utilization of Station 1 already reaches 100 percent and the lead time increases to above twenty four hours from day 41 to day 44. In addition, the demand at day 42 and 43 are 6 which is above the maximum capacity of 4.54 at Station 1. Furthermore, the utilization of Station 2 and 3 is still very low.
Graph 1: Comparing stations one’s que, utilization, and lead time

Graph 2: Comparing the utilization of stations 1,2, and 3

Besides the first fifty days of data, the simulation result depicted in Table 2 (specifically at day 160), show that the utilization and lead times at Station 1 will continue to increase rapidly over the span of twenty-four hours. With this being said if no machines are purchased the revenue will only continue to decline rapidly and eventually reach zero at day 187. …show more content…
The best time to buy the second machine at Station 1 is day 163. As illustrated in graphs 3 and 4, on day 160 the utilization of Station 1 reaches 100 percent due to the high demand, this causes the machine to reach full capacity. Specifically, it is estimated that the demand will eventually reach 13 to 15 (refer to table 2 and graphs 3&4) which is nearly three times the capacity of Station 1. Also, the lead time depicted in Table 1 is always above the companies promise of twenty-four hours. Thus, suggesting that if nothing is done the revenue will quickly decrease to zero over the next few
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