Benihana Simulation Analysis

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ASSIGNMENT FRONT SHEET

Course Title: M921- Managing Service Operations in the Evolving Business Environment

Faculty: A. Gervaix

Student Class: MBA - group B
Assessment Title: Benihana Simulation Analysis

Due Date: September 21, 2012 Due Time: Midnight Word Count:

Statement of Authorship

I certify that this assignment is my own work and contains no material which has been accepted for the award of any degree or diploma in any institute, college or university. Moreover, to the best of my knowledge and belief, it contains no material previously published or written by another person, except where due reference is made in the text of the work. I also understand that under no circumstances should any part of this assignment be published, including on the internet, or publicly displayed without receiving written permission from the University.

SignedChao Huang

Student numberGIHE 304126NameChao Huang

Benihana Simulation Analysis
Chao HUANG
Group B
Master of Business Administration 2012/2013
Managing Service Operations in the Evolving Business Environment M921
Mr. Alain Gervaix
Glion Institute of Higher Education
September 20, 2012

Introduction
Benihana simulation is a system that helps students to come up with a reasonable strategy to optimize the decisions. This simulation system provides students a chance to be pretended as the operator of the restaurant and make several crucial decisions on many large aspects. It also motivates you to think about the size and capacity of the bar and dining tables, whether you will use batching for customers, how quickly you would like to treat your customers , how much money you would like to spend on advertising budget and how to spend that money. There are 5 individual challenges for this simulation; each challenge has some options that can be adjusted. This simulation was a great way to help students to concentrate on how to use the utilized source and get the maximum profit in making the final decision and how each decision impacts the other. Strategy Design

The best strategy that the writer made brought a high nightly profit as $708.17 and lost only 4 customers for average running. The first challenge required the manager whether use batching or not. A batch service queue is considered where each batch size and its time of service are subject to control. (Serfozo, 1973) By using batching, the restaurant can get advantages due to the customers have to wait in the bar until they have a group of 8 if they do not have enough people to form, which is resulted in the increasing of beverage revenue for sure; otherwise, the capacity will not be maximum utilized. As a result, the nightly profit was much more than the way of non-batching, and the capacity utilization was 55% for batching and 42% for non-batching respectively. (see the chart below: [pic]

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The second challenge was to determine the numbers of seats in the bar and dinner tables that the manager want to open during dinner time. The maximum option is 87 bar seats and only 10 tables. The writer tried to put more bar seats and less tables, and found that the nightly profit increased as well; this made the writer to believe that the profit will increase by the increasing numbers of bar seats; however, when the writer chose the maximum bar seats, the profit did not perform well as imagined before. (See chart 1 below) Thereupon, the writer went back and chose 79 bar seats and 11 tables, and then the nightly profit was calculated as $242.38, and the average utilization also went up to 72.82%. On the other hand, this decision brought the dinner revenue of $2,620 and the bar revenue of $963.55. Everybody knows that even though the dinner brings much more profit than drinks, but according to the financial analysis in this simulation, maximizing the tables will increase the overhead cost, that is the reason why...
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