Thus,thefinaldecisionistobuildbothawarehouseandafactorywithafinalcapacityof20inFardoonday730. Every group will start the game @TBA. get all of the batch sizes (except for Fardo) to 600, which we calculate as EOQ. 6.2. Demand is higher than originally expected in both Entworpe and Tyran. 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. Here are the games and their availability windows: Trberbrook ($29.99 ERP): Available March 1-31. Calopeia Air Conditioners Seasonal-stable 39 8. Wargame 1942. Forexample,theexpectedprofitfortheinitial51100capacityis: 27778unitsexpectedtobesoldinCalopeia*211.72profitperunitforlocaltrucktransport+[(51100-27778)amountsoldinotherregions*186.72profitperunitforcontinentaltrucktransport], 27778*211.72+[(51100-27778)*186.72]=10235842. Pick up the wheel and head back out. 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. No need to worry about maximize qty of order.4. Decision: Build a warehouse only in Entworpe on day 731. BelowIwillanalyzethosemistakesandexplainhowIcouldhavedonebetter(refertoannex8forSCORmap). It should be noted that supply chain management is one of the most essential aspects in attaining business success in recent days thus there is a need for devotion. TO TRY TO FOLLOW YOUR STEPS THANKS!! 2. Ultimately we decided not to build any additional capacity. . The first step is the increase of the batch size to 200 items. We know that late in the game when demand in Calopeia drops, we adjusted settings for Calopeia to serve all three new warehouses in other regions. However,toaccountfortwoorderseverymonth,IllestimatethatdemandforEntworpewillbe500monthlyforaremainingtotaloverthenext730daysofaround12000(500*24). We do feel like we made the best choice in not adding additional capacity beyond day 1100. to make strategic, tactical, and operational decisions. Using this number, we can further calculate the potential per unit profit for other factory/warehouse Day 749 -Began construction of the warehouse in Fardo. There is no question of serving this area. We calculated initial demand in Fardo to be approximately 15 units per day. Thetermisdefinedastheuncertaintycausedbydistortedinformationflowingupanddownthesupplychain. this is Amazing! You are free to use it for research and reference purposes in order to write your own paper; however, you Toys 'R' Us Timeline 2.4 Vision/Mission Statements 3. Entworpe has the largest average order size, at 250, which arrive randomly. The concepts of supply chain management are adequately adopted in supply chain game in the sense that it seeks to illustrate the real nature of business operations. This is IvyPanda's free database of academic paper samples. IvyPanda. The adoption of a total quality management team should also be undertaken to fasten the supply processes. BecauseIwillbesupplyingnootherthantheCalopeiamarketforthefirsttwomonths,myexpectedlostdemandissummarizedbelowfrommysalesforecasts(annex1,2&3). Additionally, each supply is influenced by the decisions of its customers, thus influencing its operations. to finally get ahead of demand when capacity comes online. 0000003094 00000 n Because a warehouse takes only 60 days to build, it has about 630 days of operation available. Forexample,aqualityissue(especiallyinchemicals)couldprovedisastrousnotonlytothesupplychainbuttothewholeorganization. - Mobilize troops, charge into battle, rekindle the battle of WW2. Day 730 It is possible to calculate the regular capacity, without adding more drums 90 days x 20 =1800, and 28611-1800 = 26811. Some of the key aspects fostered in supply chain management include, logistics, forecasting, supply network design, inventory and production control. About Press Copyright Contact us Creators Advertise Developers Terms Privacy Policy & Safety How YouTube works Test new features NFL Sunday Ticket Press Copyright . Forexample,incaseofaretailerpromotion,demandwillsurelyincreaseandconsequentlyanyparticipantupthesupplychainwillincreaseitsstocklevelstomeetthenewdemand. Copyright 2023 - IvyPanda is operated by, Continuing to use IvyPanda you agree to our, Intermodal Transport and Drayage Operations, Driving Value Through Procurement and Supply, Littlefield Technologies: Customer Responsiveness Simulation Write-Up, Tysons and Frehses Academic Writings Analysis, Writing Process from Subject Study to Conclusion, The Cost Differential between Truck and Mail, Barefoot Jogging: "Born to Run Barefoot?" 0000003914 00000 n to go from day 1100 to day 1300 where we were able to fulfill all but 12 units of demand. meet expected demand. 53 Emilii Plater Street 00-113 Warsaw Lost Interest 10% annually. Forgot to increase capacity by 5 on day 760. wouldn't have paid for itself. Perhapssometrialanderrorcoupledwiththosemodelswouldhavebeenabetteralternative. Themovingaveragetoolfitsperfectlyasitwillreflectseasonalityanddoesntfocusonrandomnessortrends. 2022, ivypanda.com/essays/calopeia-supply-chain-game-write-up/. Copyright 2023 - IvyPanda is operated by, Continuing to use IvyPanda you agree to our, Saudi Dairy & Foodstuff Company Supply Chain Management, The Operations Performance of the Cheesecake Factory, Finding the Least Costly Solution for a Shipping Ompany, Walmart Company: Factory Disaster in Bangladesh, Differences between a supply chain and a value chain, Chain Management and the Creation of Competitive Advantages, Integrating Building Information Management (BIM) into Construction Supply Chain Management, Global Transportation and Logistical Risks. 0000005637 00000 n If only the factory is located in a different region, but the warehouse is located within the market region, then the additional cost is only $25 per unit. Oil it. Sorange as we should have been, and it has cost us some lost sales. The solution is to use mail when the number of drums is 100 items or less than 100 items. The database is updated daily, so anyone can easily find a relevant essay example. We can easily see that a warehouse is justified with this amount of demand. Satisfy demand in Sorange from Calopeia warehouse. Expanding the capacity by 20 drums produced per day, the company faces capacity costs in $1,000,000, and 90 days are necessary to complete a capacity expansion. How does information distortion happen in this supply chain, and what would be your suggestions to reduce it? Finally decided to go ahead and For example at one point we went for Indeed,Istartedbyadding10capacityinCalopeiainsteadof30onthefirstday;andIalsodelayedtheconstructionoftheSorangefactoryasIobserveddemandwasslowerthanexpectedtostartwith. remaining inventory. A key phenomenon in supply chains is that of coordination, whereby a business should be steadfast in monitoring the operations of its suppliers. 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. Day 938 It is necessary to achieve the optimal capacity in 45 drums per day. In addition, it is necessary to address the problem of the lost demand. Considering the 4 mainland regions, additional cost of $75 per unit is incurred if both the Thenextsectionsummarizespart3ofthispaper. Calopeia: Supply Chain Game Write-Up Report Exclusively available on IvyPanda Updated: Apr 8th, 2022 Table of Contents Problem Identification Demand The Cost Differential between Truck and Mail Order Quantity Capacity Summary Table of Recommendations Appendix 1. IvyPanda. Misrepresentation - This is specifically made for exam purpose of contract law. 0000002058 00000 n Also adjusted settings for Calopeia to serve all three new warehouses in other regions. Shipping from Sorange factory to Calopeia warehouse. Assuminganinitialfactorycapacityof30,Icannowconductabreakevenanalysis. time demand in Calopeia increased to the point where there was no extra capacity, we had built up an Whatsapp +18632310632. Inreallife,afirmwouldhavedifferentoptionssuchasastrategicpartnershiporoutsourcingwhichmayhavebeencheaperthanbuildinganewfactory. Again a factory would not pay for itself. 1. As in the first round we begin the game on day 731 with one factory and one warehouse, both located in Calopeia. For inventory, we will order the quantity with the level of 200, units to fulfill the maximum capacity of a truck and this refers that the level of inventory in the. But these. This is aimed at lessening the supply process of various goods to different destinations. ThosetwoextracapacityadditionswouldallowthefirmtokeepupwiththeCalopeia,Sorange,EntworpeandTyrandemandsasisdetailedinannexes4to7. Order priority: Calopeia factory to Sorange warehouse. Minimum 10 days $3. Thus, Jacobs regularly produces about 190 batches (28,600/150). Order priority: Calopeia factory to Entworpe warehouse. Do not worry, you will not regret.7. Building a warehouse would cost $100,000, and allow us to earn profits of approximately $61.80 per unit. The main motive making business to engage in supply chain management is to enhance their efficiency. ThismeantthatIhadtowait44daysbeforereceivingmyorder. Satisfy demand in Fardo from Sorange warehouse. Do you know your hidden name meaning ? seasonal nature of demand in Calopeia will continue to require additional effort to manage in the most Inthisregard,theLinearregressionmethodisbestsuited. Entworpe in order to focus on the three markets where we had factories and the highest profit margins. Calopeia Factory? Schedulingfactories/capacitytoolate, Initially,Iintendedtohaveallscheduledcapacitytobeoperationalbyday910aspart4specifiesbutinthesimulationIachievedthatbyday1026. average order size, at 250, which arrive randomly. As demand dropped in Calopeia through the seasonal cycle, we built up every bit of inventory that we could. Thisaspectisoneofthekeychallengesinmodernsupplychainmanagement. Forexampleinthefollowingtable,month15sforecastwouldbe(313+518)/2=415.5;month16sforecastwouldbe(518+878)/2=698andsoon. myfinaldecisionisthatthereismorevalueinbuildingupstockviatruckinCalopeiawarehouseformonths25and26soIcanthenfocusonprovidingfortheotherwarehousesoncetheyarereadyandsellfromthemataprofitmarginof186.72. Thanks to having the inventory build up we were able HadIfulfilledthoseordersbyrespectinginitialcapacityplansIwouldhaveovertookthreeteamsinthefinalrankingsasonly3.8morewouldhavebeennecessarytooccupythe5. Volume 90%, Reading Guide Graphic Organizer Step 1: When reading a book, it's all about asking the right questions and finding the answers. First,manykeyfactorsthatarepresentinreallifearenotincludedinthegamesuchasproductquality/obsolescence,costoflabour,rawmaterialspricefluctuationsorinterestratesandforeigncurrencychanges. We stopped serving both Tyran and Calopeia: Supply Chain Game Write-Up. In our supply chain game, we've taken the original beer game and developed it further to include some additional challenges that are common in supply chains. Basically, supply chain management entails the identification of potential suppliers or business partners who will be in a position to supply the business with products, services or raw materials for enhancing production and distribution of goods. Because of this inventory buildup we did increase holding costs and lose interest revenue, but we were certain that the per unit profit justified these costs. 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