Pizza Simulation

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Date Submitted: 03/18/2013 05:46 PM

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Pizza Simulation

Andy Nelson

OPS/571

February 25, 2013

Marcela Panizo

Introduction

The Pizza Store simulation presents the prospect of different outlooks in which could be utilized to increase profits and gross margins for the Mario's Pizzeria.

The simulation begins with a display of how the current owner, Mario does business. It shows the current arrangement of tables, how he has structured the staff deployments, how the facility is laid out, his profit and loss statement as relative to daily business and what the metric of utilization is. The metric of utilization in this simulation is calculated by using the formula [t/(T/n)]* 100, where t is representing time for which a particular server is utilized, T is total time for which the hours the restaurant is open, and n is the quantity of a particular waiter or kitchen staff.  After running the simulation several times, several options presented themselves. Some were profitable, some benefits the customer, some benefited neither and still others were indifferent in general as every days simulation presented varying results.

Mario’s Pizza Store shows both a high utilization percentage and a high waiting time, but only marginal gross profits.  The five points of process performance data measured are the tables for two, tables for four, wait staff, kitchen staff and usage of manual ovens.  The store's initial profit was $1068, and its losses were $1155.   The waiting times at the store were positioned above the tolerance threshold at nine minutes.

Utilization is the ratio of the time that a resource is actually being used relative to the time that it is available for use (Chase & Aquilano, 2006).

This simulation gives new management several opportunities to make adjustments to areas that could use improvement. The simulation provides opportunities to make decisions by running the simulation over and over again. With the ability to add or subtract from the areas given in each...