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Logistics Game In groups with participants, each team has to operate a company selling dairy products. Using standard reports, participants must make business decisions in order to ensure the profitability of their operations.
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Case Study 2:Case Study 2:
Operate a Logistics Company Operate a Logistics Company
EIN 6133 Enterprise Engineering
Fall, 2015
Logistics Game : Logistics Game : Pedagogical ObjectivesPedagogical ObjectivesUnderstand the importance of process
management as a source of organization competitiveness.
Learn how the ERP system supports business strategies
Develop a hands-on understanding of the concepts underlying enterprise systems
Experience the tangible benefits of enterprise integration firsthand
Develop technical skills at taking decision using an enterprise software
Logistics GameLogistics GameIn groups with 4 - 5 participants, each
team has to operate a company selling dairy products.
Using standard reports, participants must make business decisions in order to ensure the profitability of their operations.
Dairy Products Dairy Products
Logistics Game DesignLogistics Game Design Each company owns a main warehouse which
receives and stores products you have purchased from a dairy cooperative.
Products DetailsProducts Details
Market’s PreferencesMarket’s Preferences Each region has unique preferences
related to products it wishes to purchase from your company. Yet, preferences change every game.
One Price List in Distribution One Price List in Distribution Channel 16Channel 16 You may set up a price for each of your products. The
price for each product will apply to all 3 regions.
• You will have to consider transportation fees carefully in order to maximize your company’s profits.
Transportation FeesTransportation Fees
Cost : 1000 € per PO
Cost : 100 € per regional
tranfer
Logistics StrategyLogistics Strategy You must select a logistics strategy to make
your products available for sales through your regional storage locations.
OR
A Push Logistics StrategyA Push Logistics Strategy A Push strategy specifies the quantity of
each product to be delivered to each area and the number of days between deliveries.
PushPushSimulator will deliver the chosen quantity to your
three storage locations every time in the defined number of days.
If more stock in the main warehouse than required by the transfer, excess material remains at the main warehouse.
If less material available in the main warehouse than required by the transfer, the generated stock transfers divided available stock, so that regions with higher stock transfer amounts receive more stock
PushPushIn the Logistics case, you have 1,000 boxes of Milk in your main warehouse, 250 boxes of Milk in North, 300 boxes of Milk in South, and 300 of Milk in West local storage. Which of the following statements is correct based on the stock transfer planning below using Push strategy.
a. 50 to North, 0 to South, and 50 to Westb. 300 to North, 250 to South, and 350 to Westc. No transferd. 300 to North, 300 to South, and 300 to West
PushPushIn the Logistics case, you have 450 boxes of Milk in your main warehouse, 250 boxes of Milk in North, 300 boxes of Milk in South, and 300 of Milk in West local storage. Which of the following statements is correct based on the stock transfer planning below using Push strategy.
a. 150 to North, 125 to South, and 175 to Westb. 300 to North, 250 to South, and 350 to Westc. No transferd. 150 to North, 150 to South, and 150 to West
A A PullPull Logistics Strategy Logistics Strategy A Pull strategy specifies the target quantities
for each product in each area and the number of days between deliveries.
PullPullSystem will deliver the balance between the
target quantity and current stock quantity for each local storage every time according to your selected scheduling days.
If there is enough stock in the local storage, then no transfers will be generated for the local storage and the exceeding quantity will remain in the main warehouse.
In case there are less products available in the main warehouse, the generated stock transfers divide available stock so that the local storages with large gaps between current and target stock are prioritised.
PullPullIn the Logistics case, you have 900 boxes of Milk in your main warehouse, 250 boxes of Milk in North, 300 boxes of Milk in South, and 300 of Milk in West local storage. Which of the following statements is correct based on the stock transfer planning below using Pull strategy.
a. 50 to North, 0 to South, and 50 to Westb. 300 to North, 250 to South, and 350 to Westc. No transferd. 300 to North, 300 to South, and 300 to West
PullPullIn the Logistics case, you have 300 boxes of Milk in your main warehouse, 200 boxes of Milk in North, 50 boxes of Milk in South, and 50 of Milk in West local storage. Which of the following statements is correct based on the stock transfer planning below using Pull strategy.
a. 300 to North, 250 to South, and 350 to Westb. 50 to North, 100 to South, and 150 to Westc. No transferd. 100 to North, 100 to South, and 100 to West
PullPullIn the Logistics case, you have 900 boxes of Milk in your main warehouse, 300 boxes of Milk in North, 250 boxes of Milk in South, and 350 of Milk in West local storage. Which of the following statements is correct based on the stock transfer planning below using Pull strategy.
a. 300 to North, 250 to South, and 350 to Westb. 50 to North, 100 to South, and 150 to Westc. No transferd. 100 to North, 100 to South, and 100 to West
Rules of the GameRules of the GameEach round will last 10 daysEach purchase order costs €1,000 and each
transfer from the main warehouse to a regional location costs €100
There is an interest chargeThere is no initial inventory for each product.No marketing expenseEnd-of-round inventory is carried over to the
next round.You may sell a product only if the stock is
available through the regional storage location.You are competing against other teams.The objective is to maximize the profit.
Rules of the GameRules of the GameThere are warehousing costs whenever
the company’s total inventory (in both the main warehouse and three local storages) exceeds 4,000 boxes. The cost is €300 per day for each additional 1,000 boxes exceeding 4,000.
Market size: About € 12,000 per company per day.
Lead time from suppliers: 1 – 3 daysLead time to customers: 1 – 3 days
Activities in Each CompanyActivities in Each Company1) Create planned independent requirement
for each finished product (MD61)2) Run MRP (MD01)3) Covert purchase requisitions to purchase
orders (ME59N)4) Stock transfer (ZMb1B)5) Maintain prices for each product (VK32)6) Check reports
◦Purchase order report (ZME2N)◦Inventory report (ZMB52)◦Summary sales report (ZVC2)◦Sales report (ZVA05)◦Financial statement (F.01)
Activities in Each CompanyActivities in Each CompanyMake sure each regional warehouse has
the required stock needed to meet demand while reducing the delivery, the number of purchase orders, and warehousing cost.
In order to compete, each company has a good operations strategy. Manager must coordinate their efforts timely, respond to market requirement/changes quickly, and use the ERP system effectively.
Job Aids (1/2)Job Aids (1/2)
Job Aids (2/2)Job Aids (2/2)
Login informationLogin information
Client: 200
Login: $#Where $ is your team letterAnd # is your numberFor Pilot run: $ = A, B C, D, E, F, GFor Real run: $ = H, I, J, K, L, M, N
Password: ERPSIMYou will have to change your password the first time you enter
Client: 200Server: Merida
Login informationLogin informationServer: Merida
SAP Menu & NavigationSAP Menu & Navigation
Top Menu: Extras / Settings / Display technical names
Logistics Game: Logistics Game: Round 1Round 1
Participant’s job aid & MenuParticipant’s job aid & Menu
Check initial financial statementCheck initial financial statement
ForecastingForecastingFirst Screen
Second Screen
ZZ-T
Execute MRPExecute MRP
Convert purchase requisitions into Convert purchase requisitions into purchase orderspurchase orders
Track purchase ordersTrack purchase orders
Logistics Transfer PlanningLogistics Transfer Planning
Stock in material overviewStock in material overview
Maintain Prices for DC 16Maintain Prices for DC 16
16
Check sales summary reportCheck sales summary report
Check financial statementCheck financial statement
The Logistics Game:The Logistics Game:Round 1 (10 days)Round 1 (10 days)
We start the simulator for 10 days
Debriefing:Debriefing:Round 1Round 1
Questions?Questions?
What were your first impressions?How did your operations strategy work?How was the communication during Round 1?What information was exchanged among
teammates?Who made decisions in your team?Were you satisfied with the team organisation
of your group?
Logistics Game: Logistics Game: Round 2Round 2
The Logistics Game:The Logistics Game:Round 2 (10 days)Round 2 (10 days)
We start the simulator for 10 days
Debriefing:Debriefing:Round 2Round 2
Questions?Questions?
How was the communications during Round 2?
How did your operations strategy work?What information was exchanged among
teammates?Who made decisions in your team?Were you satisfied with the team
organization of your group?
Logistics Game: Logistics Game: Round 3Round 3
The Logistics Game:The Logistics Game:Round 3 (10 days)Round 3 (10 days)
We start the simulator for the last 10 days
Debriefing:Debriefing:Round 3 - 6Round 3 - 6
Team Homework: Team Homework: (Due date -11/7/2015)(Due date -11/7/2015)
1. Presentation of performance analysis for case 2: Run a Logistics company (a hard copy and an electronic file in MS Power point)
2. A written report for Case 2 (a hard copy and an electronic file in MS Word)