Littlefield Technologies Simulation Report
Team Name_________________________
Authors_____________________________
Section_____________________________
Spring 2018
Problem Statement
Explain clearly how Littlefield Technologies makes money (i.e., firm strategy) and what
operations capabilities are needed to make it successful. Also, describe the status of the plant at
the time you took over control. What numbers did you look at to decide which control parameters
needed to be changed from their current value?
As an assembly factory, the operation of Littlefield Technologies is to form the digital satellite
system receivers. The procedure of the assembly is divided into three parts: board stuffing, testing
and tuning. The company sell the finished goods to earn the profit. Furthermore, there are three
contracts regulated how much money we can earn per order: the quicker we finished the assembly,
the more money we can get. During our process, we believed that the most important part is lead
time. Since the shorter the lead time, the more the profit we can earn. At the beginning, we find
the buffer was in the station 2, then, we bought one in day 57 to improve the capacity. After that,
in day 81, the buffer appeared in station 1and station 3, so we added one machine in each of them.
In day 89, we added one more machine in station 1. At that time, our lead time began decreased.
When the buffer disappeared, the stockout appear, thus, we adjusted the reorder point to 3000 kits
per order. After doing that, our lead time decreased below 1. So, we adjust our contract to number
2 to earn more money. We achieve our optimal model then and the operation capacity is about 720
kits per day. The most important two diagrams we look a lot is inventory plot and lead time plot.
When the stockout first appeared, we found the inventory needed shipping time to arrive, so we
