Data Analysis
In this section the data collected is analyzed. The analysis is done for the following:

  • Order arrival
  • Distribution of process time
  • Resources
  • Stock control

Cost Analysis
Also the cost analysis is done for all three types of mobile phones that would be implemented. In the cost analysis the costs considered are:

  • Order charges imposed by suppliers
  • Stock maintenance cost
  • Retail price of the mobile phones
  • Variable cost
  • Marketing cost
  • Wages for the staff
  • Other running cost

Developing simulation model
In the next step the simulation model is developed, in Arena, from the conceptual (IDEF0) model for each process and for stock control. The model is developed for the following:

  • Order arrival
  • Administration process
  • Production
  • Dispatch and quality control
  • Stock control

After the model is prepared it is treated, verified and validated. The model is treated to see that it corresponds to the reality before the experimentation is started i.e.  the model’s warm up period and run length are identified.

In the next step the model is verified. The model is verified for following:

  • Correct logic and has the conceptual model is appropriately translated.
  • Model correctly coded
  • The model calculated the output variables correctly.

In the validation phase, it is checked that the model runs correctly and represents reality. Two ways of validation has be adopted.

  • Replicate validation: here the values from output variables having real world values are compared with the results
  • Structural validation: here the model is not only checked for the real world reflection but also that the model reacts correctly to the changes in the input variables i.e. also the checks the model behavior.

Before starting the experimentation with the model the bottlenecks are identified and sensitivity analysis for each bottleneck is done. This would help to us to identify better alternative as we are aware of the sensitive factors of the system.  The sensitivity analysis is done for following:

  • Resource performance
  • Stock control





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