Problem 2. A vendor is in discussion with the production manager about upgrading the existing machine (from Problem 1) t

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Problem 2 A Vendor Is In Discussion With The Production Manager About Upgrading The Existing Machine From Problem 1 T 1 (60.9 KiB) Viewed 38 times

Problem 2. A vendor is in discussion with the production manager about upgrading the existing machine (from Problem 1) that produces a widget. The new machine will cost $500,000, which includes the cost of purchasing and installation. The vendor is touting the features of the new machine in terms of increased throughput as well as improved variability with the advanced production technology available in the new machine. The manager has hired you as the simulation specialist to perform an assessment whether to invest in the new machine. The manager wants to be convinced that the new machine's performance should be significantly better than the existing machine before making the purchase recommendation Day Original New 1 10.4 9.37 12.79 10.69 2 8.19 11.59 4 12.86 13.41 12.02 5 10.65 6 8.96 11.32 7 11.3 11.34 8 7.24 11.44 9 7.16 12.15 10 10.43 11.07 11 8.27 12.29 12 9.69 12.2 You have developed a simulation model of the system and run 12 different replications using the existing and new machines. Each replication represents production activity for a 10-hour day. The table shows the throughput values (in terms of number of widgets produced per hour) that were recorded for each replication. You and the manager are both comfortable using an alpha value of 0.05 for performing the statistical analysis. What will be your recommendation to the manager based on the analysis of the output data?