Abstract The one of the Transnet Engineering factory that manufacture tarpaulins is facing an increase on customer demand and is about to sign an agreement with the customer about the new demands on 10 and 16 metre container covers. In order for the company to reach to that decision simulation is found to be the best method, because it can provide a clear view to assist the key decisions a company must make on contemplating new demands, or a new operations at an existing production line, to simulate the output capacity. The company will attract a mix of fixed and floating costs dependent upon throughput. Fixed costs will be related to optimum throughput and any reduction will attract a relative increase in costs per unit. Floating costs are …show more content…
(2013) explain that planning is concerned with preparing resources in preparation for the future with an aim to maximize the profit of a company. A planning problem is thus concerned with the entire aspect of the company, including internal production processes as well as external demand supply chains. The internal production processes are typically determined by planning the capacity of production processes over multiple time periods. The production capacity planning is critical since it directly determines the production quantities the system is capable to deliver and their lead times. On the other hand, external demand supply chain planning is also an important issue that should not be underestimated, as profitability and customer relationships are mainly dependent upon it, as if the company can sale their products they will not make money because their money is tired on the …show more content…
J. Mason, R. R. Hill, L. Mönch, O. Rose, T. Jefferson, J. W. Fowler eds. (2008) the main advantage of the proposed computer-aided methodology is that it permits to systematically reproduce the complex company process in an abstract and integrated form, visualizing the dynamic behavior of its constitutive elements over time. Production facilities (work centers), storage facilities (tails of waits, deposits of raw materials, intermediate storages and process storages), transports and materials movement devices (vehicles, bridge cranes, etc), external factors (variability in the arrival of the raw materials and demands), internal and unforeseen factors (changes in policies and operational rules, breaks, stops and maintenances of processing units in the production lines), and resources of the system (e.g. workers), were analyzed and modeled in detail. As result, a basic model was generated to discern the principal weaknesses and bottlenecks of the process, but it was also useful later for making decisions to enhance the current process