report

28/05/21, 18)06Smartsims - MikesBikes Advanced Multi-Player

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Operations Information 2021 Q2: BUSMGT 711 - Asia - Period 2023

Capacity Planning This table shows roughly how much capacity is required to produce one bike for each segment. Segment Capacity Requirement Kids 0.2 SCU per bike Racers 1.4 SCU per bike Commuters 0.2 SCU per bike Leisure 0.2 SCU per bike Adventurers 1.0 SCU per bike

Notes

1. This table is intended as a rough guide only. Among other things, it doesn't take into account factory inefficiency.

Factory Capacity Factory hours per year (no overtime) 2,000 hours Cost of new plant(machine) capacity $160 /SCU Plant buy limit* (larger of 100% or 25,000 SCU) 73,000 SCU Benchmark factory worker salary $25,000 Factory worker salary limits $15,000-$40,000 Benchmark admin staff salary $50,000 Maximum potential capacity per person 625 SCU/worker Hire decision limit* (larger of 100% or 100 workers) 125 workers Hire cost $4,000 /worker Fire cost $4,000 /worker

Notes

1. Overall factory capacity requires both machines and factory floor workers in roughly equal SCU amounts. 2. General Admin, Sales & Marketing, Production Admin staff are automatically assigned. The remainder operate as factory floor workers. 3. Maximum potential capacity per person. Due to lack of skills and motivation, effective capacity per factory worker is often roughly half this value.

Inventory Raw materials limit (weeks) 50 Annual raw materials warehouse cost per SCU $93 /SCU Annual finished goods warehouse cost per unit $100 /unit Production volumes flex according to demand +/- 20% of decision

Notes

28/05/21, 18)06Smartsims - MikesBikes Advanced Multi-Player

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1. Actual production volumes of each product will flex from the production decision to attempt to match demand.

Leadtime Batch Size limits 50 - 2,500 Setup time reduction deterioration per year* $150,000 Setup time reduction limit* (100% of new plant value) $11,680,000

Quality Training materials & instructor cost $30/hour per worker Training max 250 hours per worker Supplier relations deterioration per year* $870,000 Supplier relations max $5,000,000 Machine deterioration per year* $1,800,000 Machine deterioration per year $24 /SCU Maintenance max* (100% of new plant value) $11,680,000 Quality Systems deterioration per year* $1,500,000 Quality Systems max* (100% of new plant value) $11,680,000 Inspection cost $500 /SCU Inspection limits 0%-100% Warranty claim cost (% of wholesale selling price) 100%

Notes

1. The Setup Time Reduction, Supplier Relations, Machine, and Quality Systems deterioration figures indicate the approximate amount required to maintain existing levels in these areas. In particular, the machine deterioration refers to the amount of maintenance required to maintain current machine operating levels (eg breakdown rate). 2. Starred (*) items will change over time due to changes in accumulated investment levels and plant size.