pid (version 0.65)

manufacture: Simulation of a manufacturing facility's profit when varying two factors

Description

The hourly profit made when selling the product at price P and the product is produced at a throughput rate T [parts per hour].

Usage

manufacture(P=0.75, T=325)

Value

Returns the hourly profit made. Random noise is added for some realism.

Arguments

P

the selling price of the product. The default amount, if unspecified, is $0.75.

T

the production rate (throughput), measured in parts per hour. The default value, if unspecified, is 325 parts per hour.

Author

Kevin Dunn, <[e-mail]>

Details

This function simulates the hourly profit in a manufacturing facility.
Two factors can be adjusted by the user to determine the optimum:

• P: The selling price of the product (must be a positive value).

• T: The production rate, also called throughput (must be a positive value).

Can you determine the best combination of conditions, using a systematic method (i.e. not by trial and error)? More defects are created when production rates are too high.

References

Please see Chapter 5 of the following book: Kevin Dunn, 2010 to 2026, Process Improvement using Data, https://learnche.org/pid/

See Also

popcorn, grocery

Examples

# Producing at the default settings of price ($0.75)
# and throughput of 325 parts per hour:
manufacture()

# Let's try selling for a higher price, $1.05,
# and a slower throughput of 298 parts per hour:
manufacture(P=1.05, T=298)

# What happens if the product is sold too cheaply
# at high production rates?
manufacture(P=0.52, T=417)

# Can you find the optimum combination of settings to
# maximize the profit, but using only a few experiments?