MIME 4100 Final Exam 5/2/2010

Due Thursday, May 6, 2010 by 5 PM. Please put your solution in a large envelop with
your name on it and bring it to my office (NI 4035) in person between 3:00 PM to 5:00
PM on Thursday, 5/6/2010 or email it to me by that time. No solutions will be accepted
after 5:00 PM.

This is a take-home exam. Open book, no time limit. Please sign the honor pledge: I
have not given or received any help in this exam. Name _____________________,
Signature ____________________

For the two problems below submit hardcopies of the following:

a) A write-up explaining the logic for developing your model and the steps that you
followed to develop this model.
b) A printout showing your Arena model.
c) The report from Arena. Export the report in a PDF or word file and print it.
d) An explanation of what you did to check if the model is correct. How did you
check that the results of the simulation are correct?
e) A write-up explaining your observations are conclusions. This should include the
steps that you did to verify the model.

1. (50 pts) Unprocessed parts arrive at a manufacturing machine for processing. The
interarrival time is exponentially distributed with mean value 0.5 minutes. The
parts wait for processing on a fist-in-first-out basis. The processing time per part
is exponentially distributed with mean processing time of 0.25 minutes. After a
part has been processed it is accepted or rejected. The acceptance probability is
0.8. If a part is rejected it is placed but in the queue of unprocessed parts, after a
delay of 10 seconds.

It costs $2.5 to process a part once; if a part is rejected then it costs an additional
$2.5 to process it again. The revenue per part that is disposed of the system is $5.

Construct an ARENA model to this process.

Run your model for the following termination conditions. Stop accepting parts
after 10 hours. Terminate the simulation after all of the parts have been
processed. Study the Arena report, and determine the following: a) The number
of parts that entered and exited the system, b) the total cost, c) the total revenue
and the total profit. Summarize the observations and conclusions of the study.

2. (50 pts) Study the example of the electronic assembly and test system in chapter
4, section 4.1 of the textbook.

A manager proposes eliminating the rework area and scraping all of the parts that fail
inspection. She asks you to evaluate this proposal. In order to decide if this proposal will
increase profit you find the cost of processing each part and the revenue from selling it to
a client, which are shown in the table below:
 Process Cost per part (either A or B)
Unprocessed part $10.00
Preparation $0.50
Sealing $0.60
Rework $2.00*
Revenue per part (either A or B)
Revenue $25

*Not applicable to modified configuration

The revenue and cost of each step does not depend on the part type. Also the revenue is
the same for both salvaged and shipped parts.

Modify the model to evaluate the manager’s proposal. Run the original model in section
4.1 and the modified model according to the manager’s proposal by using the following
termination condition: stop accepting parts after 1920 minutes and stop the simulation
after all parts have been flushed out of the system. Calculate and compare the profits of
the original configuration and the modified one per minute of operation in order to decide
if the manager’s idea will increase the company’s profit.