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Title: The cost analysis of a leading optics business in Saudi Arabia

Authors: Ahmed A. Bakhsh

Addresses: Industrial Engineering Department, Faculty of Engineering, King Abdulaziz University, Jeddah, 21589, Saudi Arabia

Abstract: This study aims to use discrete event simulation (DES) to minimise the processing cost of a leading optics business in Saudi Arabia. Data is collected from three branches to calculate the operating cost and delivery time of the products. A proposed solution is developed to replace three technical workshops inside every branch with one central workshop in the city. Numbers of replications are carried out to reach the optimal solution. Cost analysis is done to compare the process cost, delivery time and idle working hours of the two options. A significant reduction is observed in the process cost and delivery time of the products besides increasing the idle working hours of the technicians. These improvements can be utilised to enhance the productivity and profitability of the organisations.

Keywords: cost effectiveness; discrete event simulation; DES; resource allocation; delivery time; optimal solution; productivity; profitability; business process re-engineering; production scheduling; Saudi Arabia.

DOI: 10.1504/IJSPM.2021.10035491

International Journal of Simulation and Process Modelling, 2021 Vol.16 No.1, pp.49 - 56

Accepted: 04 Jun 2020
Published online: 17 Feb 2021 *

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