contemporary decision making

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A machine shop produces many parts but their biggest seller is the Deluxe Jig.

Marketing only accepts orders in multiples of 50. Past demand data is:

Order Amount

Number of Orders

50

33

100

46

150

84

200

74

250

32

The Deluxe Jig goes through a four step process with the following yields:

Cutting

µ =

96.6%

σ =

1.00%

Grinding

µ =

93.4%

σ =

2.50%

Lathe

µ =

98.9%

σ =

3.00%

Polish

µ =

98.4%

σ =

1.00%

Note: The yield cannot exceed 100%

The production lot size is 15% more than the order size

Design a simulation to determine what percent of the orders satisfy the order amount (10 points)

Provide data analysis to verify that you tested the model validity (5 points)

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