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  • The Suppy Chain Game Writeup

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    Muhammad Hasan Saeed
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    Our team finished in 2nd position overall with $7,126,112 in the supply chain game. We managed the supply chain for Jacobs Industries which included a factory and warehouse supplying air conditioner kit manufacturers. Key decisions involved increasing factory capacity by 20 units, setting reorder points based on seasonal demand, using a batch size of 200 units transported by truck, and building inventory to prepare for peak demand. While our early decisions relied on trial and error, analyzing demand trends helped us better manage capacity and inventory levels to meet changing needs over four years of the simulation.

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    Our team finished in 2nd position overall with $7,126,112 in the supply chain game. We managed the supply chain for Jacobs Industries which included a factory and warehouse supplying air conditioner kit manufacturers. Key decisions involved increasing factory capacity by 20 units, setting reorder points based on seasonal demand, using a batch size of 200 units transported by truck, and building inventory to prepare for peak demand. While our early decisions relied on trial and error, analyzing demand trends helped us better manage capacity and inventory levels to meet changing needs over four years of the simulation.

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    © All Rights Reserved
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    3K views2 pages

    The Suppy Chain Game Writeup

    Uploaded by

    Muhammad Hasan Saeed
    Our team finished in 2nd position overall with $7,126,112 in the supply chain game. We managed the supply chain for Jacobs Industries which included a factory and warehouse supplying air conditioner kit manufacturers. Key decisions involved increasing factory capacity by 20 units, setting reorder points based on seasonal demand, using a batch size of 200 units transported by truck, and building inventory to prepare for peak demand. While our early decisions relied on trial and error, analyzing demand trends helped us better manage capacity and inventory levels to meet changing needs over four years of the simulation.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    The Suppy Chain Game Writeup

    Team 1: Abu Bakar Memon, Maira Siddiqui & Zeerak A. Ansari

    Overall Standing: 2nd Position, $7,126,112

    The Game Scenario:

    Jacobs’ distribution network consists of a single factory and a single warehouse, both in Calopeia. The
    warehouse only supplies air conditioner retrofit kit manufacturers, who are all in Calopeia.

    Our team has been hired to manage the supply chain for the Jacobs Industries. We had to make the
    following decisions to the supply chain:

     Capacity additions to the factory.


     The finished goods inventory threshold that triggers production of a new batch in the factory.
     The factory’s production batch size.
     Whether batches are transported to the warehouse by mail or by truck.

    Our Approach:

    1) Demand Analysis:
    We performed a demand analysis for the previous two years, to understand the average
    monthly demand for each year and daily average demand for each month respectively.
    X
    Demand Analysis
    Mont
    h Avg Daily Demand Avg Monthly Demand
    Jan 11 318
    Feb 18 537
    Mar 33 975
    Apr 29 864
    May 58 1747
    Jun 41 1227
    Jul 71 2122
    Aug 61 1830
    Sep 51 1520
    Oct 27 820
    Nov 16 486
    Dec 10 314
    2) Decisions:
     Capacity was increase by 20 units to 40 units for a cost of $1 Million, since increase in
    capacity was capital intensive and had a lead time of 90 days, keeping in mind of capital
    requirements for production it was not increased further during year 3. The increase in
    capacity could not be retired at the end of the 4 th year (no terminal value) this factor
    also influenced our capacity expansion decision.
     Reorder points varied depending on the seasonality of demand, after the peak demand
    of year 3 the reorder point was set at 2000 unit to build up inventory to accommodate
    the peak demand for the next year (10% holding cost cheaper alternative to increase in
    capacity) all though due to late decision, we were able to accumulate max inventory
    level of 1600 units. Since the WIP and holding inventory did not have a terminal value
    we built up inventory based on average demand for December of year 4 and set reorder
    and batch size to Zero minimize the loss of capital.

     Factory batch size was set at 200 units to spread the fixed costs and transportation cost
    to a minimum level. Truck was used for transportation since the cycle time of a batch of
    200 units to reach the warehouse would have remained the same of 5 days therefore
    the cheaper option was employed.

    History:

    Our decisions were not as systematic from the


    beginning, we used trial and error method to make
    sense of the game. All the major strategic decisions
    have been discussed above whereas actions that did
    not significantly contribute to our position and that
    were for learning bases have not be discussed which
    are reflected in our decision log.

    Results:

     Demand lost in year 4, decreased by


    almost 80%
     Only 111 units inventory remained
    unutilized at end of year 4
     Overall 2nd position in the game

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