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8.5 An Operations Example—Autohaus
Let us now put into practice what we have learned about MCS methods on a more
complex problem. We begin with item 6a and 6b from the Implementing Monte
Carlo Simulation Methods subsection: develop a complete model definition of the
problem (6a) and determine the uncertainty associated with model behavior (6b).
Consider an example that models an automobile diagnostic service. Your sister, Inez,
has decided to leave her very lucrative management consulting practice in business
process modeling for a nobler calling—providing auto repair services for the auto-
mobile driving masses. She has purchased Autohaus, a well respected auto repair
shop located in a small industrial park in her community, and she wants to expand
the Autohaus service options to operators of large auto fleets and light-duty truck
fleets—e.g. the local police department, the US Mail service, and corporate clients
with auto fleets. The advantage that she foresees in this business model is a steady
and predictable flow of contract demand. Additionally, Inez wants to limit the new
services Autohaus provides to engine/electrical and mechanical diagnostics, and oil
change service. Diagnostic service does not perform repairs, but it does suggest that
repair may be necessary or that maintenance is needed. It provides fleet operators
with a preventative maintenance program that can avoid costly failures. Inez wants
to perform an analysis for the new services she is contemplating.
Autohaus 3 Bay Service
Engine Diagnostics
Mechanical Diagnostics
Oil Change Service
Exhibit 8.15 Autohaus model
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