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Car Assembly Supply Chain
Introduction
Reflection
The motor vehicle assembly is one of the largest industry in the world. Usually, the manufacturing process in this industry entails car manufacturers’ assembling various parts from specialized manufacturers. Accordingly, this industry has an intricate supply chain model that is used when procuring manufacturing materials and in the sale of finished products to customers. This industry consumes about a quarter of the world’s steel and forty percent of the entire oil output.
Strategies
There many costs involved in the supply chain process, which determine the success of an organization. As a result, most of the automotive companies adopt strategies, such as the just-in-time method, which make them more efficient. Further, companies must forecast on the demand levels so that they can manufacture the right quantity of vehicles needed in the market.
Monte Carlos Simulation
The Monte Carlos simulation is a technique used to predict the possible outcomes in a business. This program considers practical real-life scenarios so that it can give realistic outcomes. The Monte Carlos simulation in this paper evaluated the number of tires, engines, chassis, and the front and back windshield that can be delivered to the company weekly. It also examines the number of vehicles that can be assembled and delivered to distributors and retailers on each week.
Methodology/Approach
Suppliers
The paper simulates the number of tires, engines, front and back windshields, and chassis that each of the company’s four suppliers can supply weekly. The random numbers were generated from the Excel Workbook RAND function. The frequency is the probability of an event happening, and cumulative frequency is the sum of all frequencies.
Assembly
The simulation of the assembly section shows the number of vehicles that can be assembled weekly.
Distribution
The simulation of distribution shows the number of vehicles that can be distributed to distributor 1, 2, and 3 each week.
Retail
The simulation of the retail evaluates the number of vehicles that can be supplied to the company’s nine retailers in each week.
Analysis
The simulations shows there will not be any shortage in the delivery of tires. There will be a shortage in the delivery of 202 engines, 30 chassis, 7 front and back windshields, and 88 batteries. The company will also have be unable to assemble 7 vehicles. Among distributors, there will be a shortage in delivery by 5, 18, and 11 to distributor 1, 2, and 3 respectively. Similarly, there will be a delivery shortage of 13, 5, 7, 4, 4, 3, 13, and 5 to retailer Jab, Dair, Sen, Zak, Al, Mos, Mar, and Mes.
Discussion and Recommendation
The company should increase its production capacity in the assembly to avoid delays in the completion of vehicles. It should also increase its order quantities and suppliers of similar parts to minimize cases of shortages in supply. Finally, it should increase its outputs and transport providers to minimize cases of delays in delivery of finished goods to suppliers.
Conclusion
Although the company has only a few unfulfilled orders, it should increase its production capacities in order to fulfil all its orders within the given deadlines. Additionally, it should increase the number of its suppliers so that it can have all the parts needed for car assembly in good time. Finally, it should increase its transporters so that it can be punctual in the delivery of orders.

Appendix

1. Tires
 Tires Delivered Actual Goods Delivered 12480 Average Weekly Delivery 240 Expected Delivery 12480 Delivery Shortage 0

1. Engines
 Engines Delivered Actual Goods Delivered 2242 Average Weekly Delivery 43.115385 Expected Delivery 2444 Delivery Shortage 202

1. Chassis/Frame
 Chassis Delivered Actual Goods Delivered 2414 Average Weekly Delivery 46.423077 Expected Delivery 2444 Delivery Shortage 30
1. Front and Back Windshield
 Front and Back Windshields Delivered Actual Goods Delivered 4881 Average Weekly Delivery 93.865385 Expected Delivery 4888 Delivery Shortage 7

1. Batteries
 Batteries Delivered Actual Goods Delivered 2356 Average Weekly Delivery 45.3076923 Expected Delivery 2444 Delivery Shortage 88

1. Assembly
 Cars Completed in Assembly Line Actual Goods Delivered 2437 Average Weekly Delivery 46.8653846 Expected Delivery 2444 Delivery Shortage 7

1. Distributor 1
 Cars Delivered to Distributor 1 Actual Goods Delivered 1035 Average Weekly Delivery 19.903846 Expected Delivery 1040 Delivery Shortage 5

1. Distributor 2
 Distributor 2 Delivery Actual Goods Delivered 762 Average Weekly Delivery 14.6538462 Expected Delivery 780 Delivery Shortage 18

1. Distributor 3
 Distributor 3 Delivery Actual Goods Delivered 873 Average Weekly Delivery 16.788462 Expected Delivery 884 Delivery Shortage 11

1. Retail 1-1 (Bas)
 Retail 1-1 (Bas) Delivery Actual Goods Delivered 260 Average Weekly Delivery 5 Expected Delivery 260 Delivery Shortage 0

1. Retail 1-2 (Jab)
 Retail 1-2 (Jab) Delivery Actual Goods Delivered 455 Average Weekly Delivery 8.75 Expected Delivery 468 Delivery Shortage 13

1. Retail 1-3 (Dair)
 Retail 1-2 (Dair) Delivery Actual Goods Delivered 359 Average Weekly Delivery 6.90384615 Expected delivery 364 Delivery Shortage 5

1. Retail 2-1 (Sen)
 Retail 2-1 (Sen) Delivery Actual Goods Delivered 253 Average Weekly Delivery 4.8653846 Expected delivery 260 Delivery Shortage 7

1. Retail 2-2 (Zak)
 Retail 2-2 (Zak) Delivery Actual Goods Delivered 152 Average Weekly Delivery 2.92307692 Expected Delivery 156 Delivery Shortage 4

1. Retail 2-3 (Al)
 Retail 2-3 (Al) Delivery Actual Goods Delivered 152 Average Weekly Delivery 2.9230769 Expected Delivery 156 Delivery Shortage 4

1. Retail 3-1 (Mos)
 Retail 3-1 (Mos) Delivery Actual Goods Delivered 257 Average Weekly Delivery 4.9423077 Expected Delivery 260 Delivery Shortage 3

1. Retail 3-2 (Mar)
 Retail 3-2 (Mar) Delivery Actual Goods Delivered 351 Average Weekly Delivery 6.75 Expected Delivery 364 Delivery Shortage 13

1. Retail 3-3 (Mes)
 Retail 3-3 (Mes) Delivery Actual Goods Delivered 203 Average Weekly Delivery 3.903846154 Expected Delivery 208 Delivery Shortage 5

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