Project BackgroundA leading arcade gaming chain has approximately 500 branches all over the Philippines. One of its perennialproblems is its prize items inventory stock outs. Customers after playing games win points from the machines and mayopt to claim gift rewards from the prize item booth. However, most customers complain of out-of-stock inventory andlong replenishment lead times. Furthermore, a majority of the branches are situated in malls and thus have limitedstorage space for keeping enough inventory. Therefore, keeping sufficient as well as the right inventory to cover supplierlead times is one of the major objectives of the study. Based on requirements gathered from the business, the projectwill encompass the following items:To analyze the historical demand for prize items from the different branches, different regions and proposesimple forecasting tools to provide forecasts for inventory ordering policies.• To analyze supplier purchasing information from the purchasing department in terms of lead time, bulk orders,volume price discounts to name a few.• To design inventory ordering policies for each prize item based on the behavior of demand, supplier order leadtime and other relevant product group characteristics such as shelf life or storage space requirement.Business Process OverviewA POS system is installed in all branches that tracks the point of sale of redemption items. Whenever a customerredeems a prize from the prize booth, the transaction is logged into the system. Furthermore, a local inventory trackingdatabase system called ITDS tracks the receipts of replenishment items, management of inventory levels and requestsfor replenishment stocks. When prize item's inventory is low, the branch manager requests additional stock throughITDS. The quantity of the requested stock is good for one month. The request form is then emailed to the company'scentralized procurement department. A buyer collates all stock requests into a Purchase Order which is sent to apredetermined supplier using an SAP ERP system. The supplier then delivers the ordered stock at the warehouse. Thereceipt of the items is logged in the same SAP ERP system. Then warehouse personnel divide the receipt into quantitiesfor all branches that requested for that prize item. The stock transfer is logged in an excel sheet, and henceforthdelivered to requesting branches. The branch manager then receives the delivery and logs it in the ITDS. The issuance ofitems to the prize both is done once a day and the cycle continues.It is desired that the project is considered a success when:• Improved service level provided to customers by minimizing stock outs• Ordering the right amount of inventoryRequirement:1. Create at least 2 business process definition based on the given case study.2. Identify the business entities in the case study and identify the sample data of each entity.

Answered: Requirement: 1. Create at least 2…

Requirement: 1. Create at least 2 business process definition based on the given case study. 2. Identify the business entities in the case study and identify the sample data of each entity.

Operations Research : Applications and Algorithms

4th Edition

ISBN:9780534380588

Author:Wayne L. Winston

Publisher:Wayne L. Winston

Chapter20: Queuing Theory

Section20.10: Exponential Queues In Series And Open Queuing Networks

Problem 1P

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