Tyran and Entworpe. The calculation for a factory is: 19 X 25 X 596 = $283,100 Again a factory would not pay for itself. It is possible to resolve the problem with adding capacity to the factory, changing the order quantity, controlling ROP, and changing the shipping method. Hb```"OV cc`aH```T1:Xp```b`'RPAc-dF'206e090o,>V`\ hdSo3Yumeh0$s$Zh:wj6F|l:-m>&ZC {jX_. -'ya!CGg6,_p^bjn3l%:fu?1Gkl Thenaturalenvironmentcanalsobeasourceofdangeroropportunity. to go from day 1100 to day 1300 where we were able to fulfill all but 12 units of demand. Shipping from Sorange factory to Sorange warehouse. 2022, ivypanda.com/essays/calopeia-supply-chain-game-write-up/. 0000001713 00000 n Chaining the order quantity from 150 to 200 on Day 730, it is possible to achieve cost savings in production. Forexample,aqualityissue(especiallyinchemicals)couldprovedisastrousnotonlytothesupplychainbuttothewholeorganization. . can use excess capacity there to serve the high demand in Sorange. From our experience at the end of round one we did not want to end up with extra inventory as demand declined over the final 30 days. Now, having calculated these numbers, we were ready to start making decisions for each region. 3. Finally,Iwillconcludethischapterwithanestimateofmyfinalcashfigurewiththetablebelow: Analysisofmistakesandsolutionssuggestion. Additionally, each supply is influenced by the decisions of its customers, thus influencing its operations. Anotherlimitingfactoristhelackofanenvironment. Every group will start the game @TBA. However,toaccountfortwoorderseverymonth,IllestimatethatdemandforEntworpewillbe500monthlyforaremainingtotaloverthenext730daysofaround12000(500*24). The first step is the increase of the batch size to 200 items. remaining inventory. 1. The Suppy Chain Game Writeup. For example at one point we went for Starting, set up WH at all region, a Factory at Sorange and Fardo.5. per unit profit provided by a warehouse ($50), then multiply by the number of days of operation. From our experience at the end of round one we did not want to end up with extra ThesecondlimitationIobservedisthelackofinteractionwithothercomponentsofthesupplychain. Supply Chain Game. InAnnex6,Inoticefromthegraphsthatmyproductioncapacitiesaremorethanenoughtorespondtoalldemand. The cost of capacity is $50,000. You have been hired to suggest a network design that will maximize . When players begin a game of Octopath Traveler 2 and start . must. Note: 1) Please note that for both games, the game will end on day 1460. The Frommonth28to48,theannex2showsaround49430unitsthatIcanexpecttoselloncethefactoryandthewarehouseareoperational. Assuming a factory with capacity of 30 per day, batch size of 200, and shipping by truck, it would take game and laying out a strategy. Manage your resources and invest them carefully. TO TRY TO FOLLOW YOUR STEPS THANKS!! During the first period Day 1-731, this region faced lost demand of 47% of the total. Factory and Warehouse$211 Factory and Warehouse$211. Considering the 4 mainland regions, additional cost of $75 per unit is incurred if both the factory and warehouse are located in a different region than the market served. Holding Cost $0 per day. changed as needed to try and capture as much volume as possible. Therefore we believe it is clear that a factory in Sorange is justified. Below is the recommended strategy in the beginning of the game. demand later in the game. The cost of adding 20 units of capacity to the . Your privacy is extremely important to us. warehouse will be keep at 200 units to cut inventory aging. same, Round 2 was a much more complicated affair. Toconsultthefulltableandthecorrespondinggraphs,pleaserefertoAnnex1whichshowstotalexpecteddemandforthisregionisaround27778units. configurations. Sorange as we should have been, and it has cost us some lost sales. This may be in terms of high pricing, delays in delivery and low quality. We have two choices in Fardo, build a warehouse and serve it from another region, or build both a warehouse and factory in Fardo dedicated to serving only that market. Onday730,IchangedthetransportationmethodtotruckasplannedbutatypingerrormeantIordered2600drumsonday740,insteadof1000. Trying to To produce batches including 400 items is a more cost saving strategy because production costs become twice less, and transportation costs also decrease because of the opportunity to make fewer trips to the warehouse. "Supply Chain Game." We wanted to be sure that we didn't Day 956 - Increased capacity at Sorange by 5, now 70. Thus,thefinaldecisionistobuildbothawarehouseandafactorywithafinalcapacityof20inFardoonday730. FortheSorangeregion,Iamtoldthatalthoughthesizeoftheordersarerandom,overalldemandwillgrowlinearlyuntilday1430. certain that the per unit profit justified these costs. INTRODUCTION 2.1 Business profile 2.2 History 2.3. New warehouse? Day 956 -Increased capacity at Sorange by 5, now 70. SWOT ANALYSIS 5.1 IFE Matrix 5.2 EFE matrix 6. our product, each with different demand characteristics, though the final selling price in each market was Shipping from Calopeia factory to Calopeia warehouse. ensure the integrity of our platform while keeping your private information safe. Inthisscenario,theidealforecastingmethodwouldneedtoaccountfortheupwardtrend. It probably wouldn't have paid for itself. Sorange Hardwood floorsIncreasing-linear 10 8. AUTHORS' COMMENTS 1. Calopeia 1. Ilearnedinthismodulethatasupplychainstrategyshouldbealignedwithbothinternalbusinessfunctionsbutalsowithpartnersupstreamanddownstreamaswellastheoverallcorporatestrategicgoals. ThelatterpartwillbeconcernedwithdetailingtheprogressofthegamewithaparticularfocusonthemistakesmadeandwhatcouldhavebeendonetoachieveabetteroutcomebeforeconcludingwiththelimitationsofthesimulationandwhatIretainfromthewholeexperience. TheexpectedstocklevelinCalopeiawouldbeasfollows,basedonsalesforcastsinannex1andproductionforecastsinannex4. There are 610 days to make the capacity 44 because 26811/610 days = 44 and to achieve the optimal amount in 45 before stopping the production. Thanks to having the inventory build up we were able 22 August. Theaveragedemandforthesefourmonthsis437.5. ThankstothesetablesandmypreviousfiguresIcanroughlyestimatemyfinalcashfigureonday1460. Order quantity: Calopeia factory to Calopeia warehouse. Awarehousecosts100000,andaccordingtothetableadds50inprofitperunitsold. Satisfy demand in Calopeia from Sorange warehouse. In addition to capital investments we also adjust the order point in Calopeia up to 5000 to insure that the factory would not be idle. Therefore stockouts here can be costly. IhavedecidedtosupplyallmarketswhileensuringIadjustthe, variablessothattheprofitmarginachievedinany. Throughout the course of the game, the Misrepresentation - This is specifically made for exam purpose of contract law. The main process by the team was to identify its needs in terms of products and raw materials. We will first determine if it makes financial sense to build a warehouse in Entworpe. Themovingaveragetoolfitsperfectlyasitwillreflectseasonalityanddoesntfocusonrandomnessortrends. "Supply Chain Game." Order priority: Sorange factory to Sorange warehouse. IvyPanda. With regards to the issue of supply chain management, businesses are required to be steadfast in selecting their partners. 0000074923 00000 n 3. TyranandFardosdemandsbehavedifferentlyfromthefirsttwomarkets. It was really hard on my business going down due to my little short time illness then when I got heal I needed a fund to set it up again for me to begin so I came across Mr Benjamin a loan consultant officer at Le_Meridian Funding Service He asked me of my business project and I told him i already owned One and i just needed loan of 200,000.00 USD he gave me form to fill and I did also he asked me of my Valid ID in few days They did the transfer and my loan was granted. Gives you the best experience of strategy games. KnowingthatIonlyusetrucksasamethodoftransportation,thebreakevenpointissoonerthankstoabiggerprofitmargin: [(20*50000)+500000+100000]/1450-1238.28=7557units. (2022, April 8). Minimum 10 days $3. - Morale system, lower your enemy's morale to weaken their firepower in the war games. The calculation for a factory is: 19 X 25 X 596 = $283,100 Again a factory would not pay for itself. Theconsequent5694instockwouldbeenoughtosustaindemandinCalopeiauntilmonth30. Finally decided to go ahead and take it up to 75. Remember your reading plan. seasonal nature of demand in Calopeia will continue to require additional effort to manage in the most Inthisregard,Iplottedthemaximummonthlyproductionachievablepermainlandfactory(SorangeandCalopeia)inannex4tocomparewiththetotalmainlandmonthlydemandinannex5. Decision: Build a warehouse only in Entworpe on day 731. The cost of building a factory is $500,000 regardless of the factory capacity. Sudden Strike 4 Complete Collection ($39.99 ERP): Available March 1-31. The business selling the products also ensures ordering enough raw materials from its suppliers so as to meet its customers demands. This is IvyPanda's free database of academic paper samples. The database is updated daily, so anyone can easily find a relevant essay example. So we decided to serve Tyran from Entworpe for a short time. We clearly were slower at adding capacity in 16, Day 852 - Increased capacity at Sorange factory by 5, now 50, Day 894 - Increased capacity at Sorange factory by 5, now 55, Day 895 - Demand in Fardo is still higher than capacity. We have been debating about adding additional capacity to Sorange. this is Amazing! The concept of supply chain games is an online supply network simulator for demonstrating the actual nature of supply chains. The final step is adding 5 to the current capacity after the analysis of experienced revenues and costs. Building a warehouse would cost $100,000, and allow us to earn profits of approximately $61.80 per unit. 2022. Diaryofongoingactionsaftercommencement We calculate that by day 820, when the factory would first be operational, daily demand would already be at approximately 30 per day. TheriskofrunningoutofstockwhendemandpeaksisalsoareasonwhyIdecidednottoservetheothermarketsuntilday790. myfinaldecisionisthatthereismorevalueinbuildingupstockviatruckinCalopeiawarehouseformonths25and26soIcanthenfocusonprovidingfortheotherwarehousesoncetheyarereadyandsellfromthemataprofitmarginof186.72. The highest possible profit per unit is around day 1415 we shut down most of the factories and were pretty conservative on our estimates of 10. Capacity would have to be added at another factory, so operations couldn't start in Fardo until day 820, and shipping would take two weeks. This is not seasonal, and not increasing. Ultimately we decided not to build any additional capacity. Throughout the course of the game, the seasonal nature of demand in Calopeia will continue to require additional effort to manage in the most profitable manner. Day 730 It is possible to calculate the regular capacity, without adding more drums 90 days x 20 =1800, and 28611-1800 = 26811. In addition to the above capacity increases, we have also monitored the various priority levels and The island of Fardo has substantially higher freight costs, so it must be considered separately. a factory is operational it will also take some number of days for the first shipments to reach the market. Order quantity: Calopeia factory to Entworpe warehouse. 0000003873 00000 n A factory takes 90 days to build, and we cannot rely on demand beyond day 1430. Osvald's story takes the unusual step of setting his first two chapters back-to-back, but at least the second chapter is much shorter. We started the factory in Sorange, whereby the main reason was the anticipated additional value to the factory of about, 15,000. However,becauseittakesthreemonthstobuildafactoryIwilldiscountforecasteddemandfromday730to820. "Calopeia: Supply Chain Game Write-Up." Working in collaborative teams, students must turn knowledge immediately into action, i.e. Calopeia Air Conditioners Seasonal-stable 39 8. Satisfy demand in Entworpe from Sorange warehouse. Itwillexplaintherationalebehindthedecisionmakingthroughannexesandviathedifferenttoolslearnedduringthismodule. "Calopeia: Supply Chain Game Write-Up." do feel like we made the best choice in not adding additional capacity beyond day 1100. We have been debating about adding additional capacity to Sorange. Inreallife,afirmwouldhavedifferentoptionssuchasastrategicpartnershiporoutsourcingwhichmayhavebeencheaperthanbuildinganewfactory. It is important to be flexible while choosing the shipping method. Inordertoforecastsuchdemand,onehastoconsiderthatthereisnoarandomvariationortrendsinthisscenarioandthereforepastdemandisasolidgroundonwhichtobaseassumptionsforthefuture. IvyPanda. Forexample,theexpectedprofitfortheinitial51100capacityis: 27778unitsexpectedtobesoldinCalopeia*211.72profitperunitforlocaltrucktransport+[(51100-27778)amountsoldinotherregions*186.72profitperunitforcontinentaltrucktransport], 27778*211.72+[(51100-27778)*186.72]=10235842. (2019, August 22). Satisfy demand in Fardo from Sorange warehouse. To find whether a AlthoughIdointendtoresumedeliveriestothatwarehousefrommonth29,thiswouldleavemetwofullmonthstofilltheother3warehouses. However,thesaiddemandincreasedbecauseofthepromotionandwhenitendsmostorganizationsbuttheretailerwillbeleftwithexcessinventoryleadingtohighercosts/productobsolescence. Teams were tasked with creating an optimal strategy, one that would 'beat' the other teams in the class. By the the maximum potential profit can be calculated as follows (assuming 3 day manufacturing time): Production Cost $1000 per drum plus $1500 fixed setup cost$1007. EXECUTIVE SUMMARY 1.1 Key Facts 2. %PDF-1.3 % My post simulation report on the Pangea Supply Chain game. warehouse in Entworpe will payoff, we simply need to multiply the average daily demand by the additional Thus, the use of trucks seems to be more advantageous for Jacobs, but the problem is in the transportation time and number of drums in each track. Order point: Calopeia factory to Entworpe warehouse. question of serving this area. Decision: Build a warehouse only in Tyran on day 731. Satisfy demand in Sorange from Calopeia warehouse. Schedule factory capacity change in Sorange. This table summarizes the characteristics of each market. Once the warehouse is in operation, we will begin to serve it with excess capacity and inventory from Calopeia until the factory comes online. Trick: Day 630, capacity at Calopia add 30 to be 100, Factory at Sorange should be first 30, then add 20 more to be 50, Fardo Factory good at 20. April 8, 2022. https://ivypanda.com/essays/calopeia-supply-chain-game-write-up/. Calopeia For the Calopeia region, the assignment stipulates that demand is very seasonal but stable. Sorange differs from the other two regions in that demand, while currently only about 11 units per day, it is increasing linearly and will continue to do so until day 1430. Day 1008 - Now that demand is dropping in Calopeia, adjusted re-order points and batch sizes. Go through. Also want to be sure that Disconcertedbytheresulting2.6dropincash,IthenmadeanothermistakeindecidingtoservetheTyran,SorangeandEntworpemarketsrightawaytobuildupcash. HadIfulfilledthoseordersbyrespectinginitialcapacityplansIwouldhaveovertookthreeteamsinthefinalrankingsasonly3.8morewouldhavebeennecessarytooccupythe5. Demand is higher than originally expected in both Entworpe and Tyran. The needs and objectives of the company should be prioritized in selecting a supplier for the products or raw materials required by a business. over the remaining 330 days. Hopefully this will allow us to finally get ahead of demand when capacity comes online. In addition to the above capacity increases, we have also monitored the various priority levels and changed as needed to try and capture as much volume as possible. Calopeia For the Calopeia region, the assignment stipulates that demand is very seasonal but stable. The only other decisions to be made were at the end of the game. We tool inventory in Calopeia up to about capacity may end up higher than originally anticipated at 70-75. The key objective of supply chain game is to maximize cash position at the end of the game which is in this case identified as a key aspect in meeting the pursuit for profit. We began our initial analysis by reviewing the instructions in detail. Lastly,thelackofflexibilityinthegameisanotherweakness. You'll manage the process for one of the UK's most popular items - cans of baked beans! TheformulaabovewasusedtoforecastthedemandsforTyran/Fardothroughatable/grapheach,pleaserefertoAnnex3whichshowsremainingdemandis12899and12659respectively. we will save the cost of $75 per drum thru using a truck. Tyran Appliances Not seasonal-level19 8. So we decided to serve Tyran from Entworpe for a short time. "Supply Chain Game." Allthesefactorscouldhaveamajorimpactonasupplychain. Thisisadirectconsequenceofnothavingrespectedthecapacityschedulesaslesscapacityatalaterdatemeantittookmelongertoproducefinishedgoods. 2. Need a custom Report sample written from scratch by Mainland Regions Profit Potential Fardo Profit Potential. Order quantity: Calopeia factory to Sorange warehouse. Using this number, we can further calculate the potential per unit profit for other factory/warehouse configurations. Thanks to having the inventory build up we were able to go from day 1100 to day 1300 where we were able to fulfill all but 12 units of demand. The Le_Meridian Funding Service went above and beyond their requirements to assist me with my loan which i used expand my pharmacy business,They were friendly, professional, and absolute gems to work with.I will recommend anyone looking for loan to contact. Satisfy demand in Sorange from Entworpe warehouse. Theinitialcapacityof30equalsto19200over640daysandIintendtoadd10moredrumsofcapacityoperationalin6monthswhichwouldleave(730-180=550daysofproduction). These mistakes should be avoided by ensuring a high sense of consciousness in selecting the supplier. ThisreportwilloutlinetheinitialstrategyIadoptedbeforethesupplychainsimulationstartedwhichwillincludethedifferentforecastsandtheoperationaldecisionswhichresultedfromthem. Our reasoning is that the additional $50 per unit in profit justifies saving inventory in Calopeia for the 60 days. The main motive making business to engage in supply chain management is to enhance their efficiency. You can do lots of things to improve supply chain performance and lower costs. We have learnt the valuable experience from the last simulation that forecasting, future demand is a key factor to be competitive. Question: In the Global Supply Chain Game, it is best to determine capacity additions, say at Calopeia based on: The shortfall that can be saved during the remaining life of the supply chain Availability of capacity to add The method of shipping from the factory to the warehouse The volume of demand arising out of Fardo Show transcribed image text What is the. August 22, 2019. https://ivypanda.com/essays/supply-chain-game/. From 1 and 2 above , you are now ok to fix order qty at 200 for a truck load. 0000001735 00000 n We can calculate the break even point to justify a factory by dividing the $500,000 fixed cost by 25, and then divide again by the number of days, 596. Serve the market using excess capacity from Calopeia. Breakevenpoint=Fixedcost/(Unitsellingprice-Variablecost), [(30*50000)+500000+100000]/1450-(1000+7.5+75+3+2.78+150). by Chang, Chinese Exclusion Act and Immigrants' Protests, The Stochastic Demand for Optimum Blood Inventory Management, The Impact of Energy on Logistics Systems, Perishable Goods and Related Logistics Issues, Transportation Freight/ Logistics: NVOCCs. G2A.COM Limited 31/F, Tower Two, Times Square, 1 Matheson Street Causeway Bay, Hong Kong Incorporation number: 2088957 Business registration number: 63264201 Customer (support) services are granted by G2A PL Sp. potential profit for each scenario is summarized below. Your privacy is extremely important to us. In this case, there is a four-step process in which companies should adopt in finding a vendor. Since a warehouse costs only $100,000, the additional profit provided by a warehouse is definitely remainsthehighestpossible. Using the same methodology The Game Scenario: Jacobs' distribution network consists of a single factory and a single warehouse, both in Calopeia. As commander in chief, you lead your own nation in Wargame1942. 0000046855 00000 n Thus100000/50=2000,itwouldtakeonly2000unitssoldtobreakevenonawarehouse. a long stretch with no demand in Entworpe, and inventory just sat there, meanwhile we were losing sales Haryanto, I enjoyed your reflections. Estimatedremainingdemand(seeAnnexes1,2&3). Head back three screens and use the pickaxe to break through the wall. We clearly were slower at adding capacity in Sorange as we should have been, and it has cost us some lost sales. Increased capacity by 1 to 16, Day 852 -Increased capacity at Sorange factory by 5, now 50, Day 894 -Increased capacity at Sorange factory by 5, now 55, Day 895 -Demand in Fardo is still higher than capacity. As in the first round we begin the game on day 731 with one factory and one warehouse, both located in Calopeia. withaconstantof0.3toreflecttheconsiderablerandomnessinthesetimeseries. The main strategy for this region is deploying Lean Processes that we would like to, minimize the cost at low as possible and utilize the capacity of the machine. We will first determine if it makes financial sense to build a warehouse in Entworpe. average order size, at 250, which arrive randomly. We stopped serving both Tyran and Entworpe in order to focus on the three markets where we had factories and the highest profit margins. $ 211, now 70 additional capacity easily find a relevant essay example easily find a relevant essay example Please! Therefore we believe it is clear that a factory is: 19 X 25 596... 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Should have been debating about adding additional capacity to the factory of about 15,000! Demand is dropping in Calopeia for the 60 days adjusted re-order points and batch sizes working collaborative... The wall - Increased capacity at Sorange and Fardo.5 of things to improve supply chain performance lower. The valuable experience from the last simulation that forecasting, future demand is seasonal. In Wargame1942 head back three screens and use the pickaxe to break through the wall factory capacity decided to... The recommended strategy in the beginning of the batch size to 200 items therefore we believe it possible. The best choice in not adding additional capacity beyond day 1430 $ 211 factory and warehouse $.! Per drum thru using a truck load very seasonal but stable Starting, set up WH at all region the..., it is clear that a factory would not pay for itself should have been, and we can calculate! The final step is adding 5 to the factory in Sorange as we should have been, we... 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