Lead Time Management at Littlefield Labs

Report and record outcome – the findings of the risk assessment must be recorded and all those involved and who need to know should be given explanations and information on how these risks can be prevented and/or controlled.

The second Littlefield simulation game focused on lead time and inventory management in an environment with a changing demand (“but the long-run average demand will not change over the product’s 268-day lifetime”). Therefore our strategy to win this game was controlling the Littlefield Lab’s system capacity and the inventory level with choosing a right contract as well as keeping the cash daily as much as possible. In other

* Calculate sales quotas and understand how many scripts are needed to hit each quarterly goal. Break it down to a weekly number if possible.

After evaluating capacity, Team A turned our attention towards an analysis of the throughput time of the Littlefield factory to determine the optimum customer contract to offer. During the first 50 days, Littlefield management elected to accept purchase orders with a quoted lead time of 7 days at a price of $750. Littlefield was able to obtain 100% expected revenue during the first 50 days of operations and averaged a throughput time of 1.64 days (St Dev: 0.91). In order to increase the overall profitability, Littlefield can increase

We recalculated the average arrival rate over the entire simulation to be approximately 11.8 orders per day, which we rounded to 12 for a small buffer. Based on this daily consumption, we found what day the next reorder point would be which was day 222. We wanted to find the demand for the final 46 days with an average of 12 orders per day came up with a figure of 552 units needed to meet demand over the last 46 days. Since we already had 61 units at the time of ordering, we subtracted that figure from the 552 and came up with a final order value of 491. This value should allow us to have a low inventory level at the end of the simulation. To achieve this, we had to change the reorder point to zero. This strategies hinges heavily on the lab not being in existence past day 268, if that were not the case, we would not recommend this plan.

Our team operated and managed the Littlefield Technologies facility over the span of 1268 simulated days. Our team finished the simulation in 3rd place, posting $2,234,639 in cash at the end of the game. We did intuitive analysis initially and came up the strategy at the beginning of the game. And then we applied the knowledge we learned in the class, did process analysis and modified our strategies according to the performance results dynamically. We have reinforced many of the concepts and lessons learned in class and had a better understanding of the operation of the Littlefield Technologies facility and how certain modifications would affect the throughput and lead time.

Using the spreadsheet, we found Q* = NORM.INV(.8,500,100) = 584.16. The simulation and newsvendor model give the same optimal stocking quantity.

After twenty years the true allocation facility cost for the Dialysis Center should be zero, since the facility would be paid off and should have only minimal allocating facility costs such as opportunity costs and costs of using the center. If after the twenty years the building is not occupied it can be used from other medical centers or it could be rented out or sold. It is difficult to try to determine the opportunity costs for space occupied by all activities. The current system of facility allocation assigns equal opportunity cost across all activities and services and avoids the problem inherited in the new method.

Outcomes, decide on a course of action and carry it out, evaluate/ review results of

1.) The managers will e-mail their weekly reports to you on Monday of the following week. You will then produce the summary report. Explain the process for doing this. Give a sample

6. The risk assessment team will conduct an inspection of the department/area being assessed for risk or observe the process being assessed for risk in action. The members of the risk assessment team will individually document their findings on the “ABC Proactive Risk Assessment Worksheet” (Attachment A). To determine the appropriate score for each identified risk, the reviewer will consider information obtained through a physical tour of the facility, review of annual incident

4. Now focus solely on the expected profitability of the proposed marketing program. How many incremental daily visits must the program generate to make it worthwhile? (In other words, how many incremental visits would it take to pay for the marketing program, irrespective of overall clinic

A. The simulated function given in the Excel spreadsheet “Hamptonshire Express: Problem_#1” allows the user to find the optimal quantity of newspapers to be stocked at the newly formed Hamptonshire Express Daily Newspaper. Anna Sheen estimated the daily demand of newspapers to be on a normal standard distribution; stating that daily demand will have a mean of 500 newspapers per day with a standard deviation of 100 newspapers per day. Using the function provided, the optimal stocking quantity, which maximizes expected profit, is determined to be approximately 584 newspapers. If 584 newspapers were to be ordered, Hamptonshire Express will net an

-Hired R&D Officers and Staff/Review of 201 files for possible qualified employees for the team.

With our large inventories, our inventory holding costs, insurance, and shrinkage from pilferage, obsolescence, and deterioration can be expensive. We need to plan so that we can minimize inventory and its associated costs while also meeting the needs of our customers and maintaining high customer satisfaction. We can do this by cycling inventory and reducing the lot size by only ordering less and reducing our carrying costs. We need to improve demand forecasts and cut lead times in order to reduce our safety stock inventory. With more accurate forecasts we can place orders closer to the time when they must be received and further cut our inventory holding costs. Another way to reduce safety stock is to reduce supply uncertainties. We must look at our suppliers and remove those that are not timely or those that have quality issues. Our company should look for alternative suppliers who