MyAssignmentServices uses cookies to deliver the best experience possible. Read more

  • Internal Code :
  • Subject Code :
  • University :
  • Subject Name : Accounting and Finance

Introduction to Decision Making

The assessment is about decision making based on the simulation that has been performed. Other than the practical performance, this assessment seeks for the article's view of the simulation-based questions and their results. In the simulation, two of the decisions. 1st one was based on the batch processing while others were based on the service quality. We have to determine the method with the higher throughput as well as profitability. In the second question, the effect of one process has been described on the other process. The simulation was based on the Benihana, which is the restaurant.

Decision Making - Question 1

Throughput is the amount or the number of services of products that pass through the process of production during a certain period of time. It can be called as the flow rate and measured the number of units that a company has the capacity to produce within the specific time period. To improve the production process, it will be possible to enhance throughput. For example, in the process of production, if we hire more staff and ensure that the technical issues, as well as issues related to the operation, are resolved quickly, then positive results on the throughput can be seen. Resolving the operation of bottleneck natures can be a way to enhance the throughput (Subramaniyan, Skoogh, Salomonsson, Bangalore, & Gopalakrishnan, 2018).

Throughput can be calculated by effective monitoring of the time. In other words, we can say that throughput is about cycle time. Cycle time the number of days between the starting the production process and completion of that process. By means of cycle time, throughput can be calculated by diving the output by cycle time. In the given challenge, the batching strategy has increased the throughput time by serving more of the customers almost by the same staff. Throughput for the process of serving has been calculated by diving the output, which is considered the cost of relative service divided bicycle time (Siebert, et al., 2018). While the process without batching had less throughput time. The length of the time is given as follows:

Scenario

Runs

Open to 7 pm

7pm-8pm

8pm-10:30pm

Profit

1

20

60

60

60

83.64

2

20

60

50

60

117.61

3

20

75

75

75

-5.59

The drawback of the batching process was that some of the customers have started to negotiate about living with the members. The strategy in this area of the business can lose customers. The system related to batching has indicated the perfect results in the case of high demand and lower supply. The comparing of the profits for both of the processes has resulted that profits with the batching are more than others. It has been indicated that while applying the batching, the services have shown the profit of positive 83.64 that was far more than without batching. Without batching, the process has shown the profit was -282.29. Due to batching many of the customers can be handled in a short time with the one staff instead of two (Moon, Jeong, & Saha, 2018)

It was not always correct to demonstrate that batching has always increased profitability. In some of the cases, batching did not allow the reservations. It is only restricted to peak hours. In non-peak days or hours, the increase in batching can reduce the satisfaction of the customer. The satisfaction of customers is the key to profitability. So a reduction in satisfaction can lead to a decrease in profits. It has been estimated that the profits related to the batch processing at the time of fewer customers had negative profitability as compared to the original. The reason is that customers have preferred to sit on the empty table (Sawatzki & Goos, 2018 ).

Decision Making - Question 2

The simulation was based on the observation of the two processing methods, and we have to determine which method is more beneficial and profitable. The 1st decision was based on batch processing. In batch processing, the customers are treated at a time. In other processes, the customers are treated individually. The relative costs are measured and compared to the profitability, as indicated above. Now, it has to determine the effect or the relation on each other. Both of the decision are independent of each other but has impacts on profitability. The simulation was based on the five challenges and the numbers of each are given as follows:

Challenge

Runs

Use Batching

Bar Seats

Tables

Profits in $

Challenge 1

20

Yes

27

17

201

Challenge 2

20

Yes

67

12

412

Challenge 3

20

Yes

83

10

406

Challenge 4

20

No

27

17

(268)

Challenge 5

20

No

67

12

(150)

The underpinned theory was based on the activities that are related to the auctions, evaluation and marketing. These are the following theories related to the underpinning of the optimum strategy:

  • Descriptive decision theory: This theory indicates that the examination of an irrational person is making the decision.
  • Prescriptive Decision Theory: The theory helps guide agents so that the best possible decision shall be made given that uncertain decision-making framework.
  • Normative decision theory: This theory provides for making a decision given as group of values (Brady, 2017)

A common example of the theory is that this theory stems from the dilemma related to the prisoners. In this case, two individuals are faced with a decision that is uncertain and completely unpredictable, and the outcome is not based on their personal but has also on the other individual. So the actions of one person will not be known to another person or party, and this can lead to the uncertainty for the decision-making framework.

Conclusion on Decision Making

The results have concluded that throughput can be enhanced in batch processing and showed greater profitability. In question 2, the relation of the two of the processes has been shown. The batch processing increases the profitability, but by batching, the quality of the service decreases.

References for Decision Making

Brady, M. E. (2017). How Confusing Keynes's Normative Decision Theory in the Treatise on Probability and General Theory with Kahneman and Tversky's' Heuristics and Biases (Errors),' Descriptive Theory Leads to Complete Confusion. Descriptive Theory Leads to Complete Confusion.

Moon, I., Jeong, Y. J. & Saha, S. (2018). Investment and coordination decisions in a supply chain of fresh agricultural products. Operational Research.

Sawatzki, C., & Goos, M. (2018 ). Cost, price and profit: what influences students' decisions about fundraising? Mathematics Education Research Journal.

Siebert, M., Bartlett, K., Kim, H., Ahmed, S., Lee, J., Nazzal, D., & Sokol, J. (2018). Lot targeting and lot dispatching decision policies for semiconductor manufacturing: optimization under uncertainty with simulation validation. International Journal of Production Research.

Subramaniyan, M., Skoogh, A., Salomonsson, H., Bangalore, P., & Gopalakrishnan, M. (2018). Data-driven algorithm for throughput bottleneck analysis of production systems. Production & Manufacturing Research.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Accounting and Finance Assignment Help

Get It Done! Today

Applicable Time Zone is AEST [Sydney, NSW] (GMT+11)
Not Specific >5000
  • 1,212,718Orders

  • 4.9/5Rating

  • 5,063Experts

Highlights

  • 21 Step Quality Check
  • 2000+ Ph.D Experts
  • Live Expert Sessions
  • Dedicated App
  • Earn while you Learn with us
  • Confidentiality Agreement
  • Money Back Guarantee
  • Customer Feedback

Just Pay for your Assignment

  • Turnitin Report

    $10.00
  • Proofreading and Editing

    $9.00Per Page
  • Consultation with Expert

    $35.00Per Hour
  • Live Session 1-on-1

    $40.00Per 30 min.
  • Quality Check

    $25.00
  • Total

    Free
  • Let's Start

Get
500 Words Free
on your assignment today

Browse across 1 Million Assignment Samples for Free

Explore MASS
Order Now

Request Callback

My Assignment Services- Whatsapp Tap to ChatGet instant assignment help

Get 500 Words FREE
Ask your Question
Need Assistance on your
existing assignment order?