Global Supply Chain Simulation
You are in charge of a global supply chain. You sell cell phones which can be acquired from any
or all of the following four suppliers.
Supplier Data
FarFarAway FarAway Pretty Close Ve-Ri-Fas
Set-up Cost $1,000,000 $2,000,000 $1,000,000 $2,000,000
Incremental Unit Cost - - $ 10 $ 10
Leadtime (months) 4 3 0 0
Monthly Capacity 60,000 60,000 35,000 40,000
Min Prod'n Level 60% 60% 60% 60%
Prod'n Change Cost 2,000 2,000 2,000 2,000
Please keep in mind that the simulation is a world in its own, thus keep your perceptions about
how things should be, in check.
For example: You may think that one of the cell phone option suggested makes no sense
based on your real life experience. However, in the simulation world, it just might.
Furthermore, this simulation does not require any numerical calculations. Please use your
judgement to make good decisions. Calculators and textbooks are a waste of time in this case.
Things to keep in mind while doing the simulation: [Key questions / Learning Objectives]
1. How to create a cost effective supply chain?
2. How to build flexibility in supply chain?
3. How to evaluate forecasting methods from a team of individuals with different opinions?
4. How to build production plan?
5. How to evaluate the relative importance of performance results at the end of each year?
You will be judged based on the following criteria: [Evaluation criteria]
1. How well did you do financially in all four years?
2. How well did you incorporate the advice you received from your “virtual team” and make
decisions? Keep in mind that as a decision maker you can also be evaluated on your ability to
ignore bad advice.
3. How many board votes did you get over the four years? The board members will give your
their vote if you do what pleases them.
This study source was downloaded by 100000853497421 from CourseHero.com on 06-23-2023 01:42:06 GMT -05:00
https://www.coursehero.com/file/18304750/Global-supply-chain-simulation/
You are in charge of a global supply chain. You sell cell phones which can be acquired from any
or all of the following four suppliers.
Supplier Data
FarFarAway FarAway Pretty Close Ve-Ri-Fas
Set-up Cost $1,000,000 $2,000,000 $1,000,000 $2,000,000
Incremental Unit Cost - - $ 10 $ 10
Leadtime (months) 4 3 0 0
Monthly Capacity 60,000 60,000 35,000 40,000
Min Prod'n Level 60% 60% 60% 60%
Prod'n Change Cost 2,000 2,000 2,000 2,000
Please keep in mind that the simulation is a world in its own, thus keep your perceptions about
how things should be, in check.
For example: You may think that one of the cell phone option suggested makes no sense
based on your real life experience. However, in the simulation world, it just might.
Furthermore, this simulation does not require any numerical calculations. Please use your
judgement to make good decisions. Calculators and textbooks are a waste of time in this case.
Things to keep in mind while doing the simulation: [Key questions / Learning Objectives]
1. How to create a cost effective supply chain?
2. How to build flexibility in supply chain?
3. How to evaluate forecasting methods from a team of individuals with different opinions?
4. How to build production plan?
5. How to evaluate the relative importance of performance results at the end of each year?
You will be judged based on the following criteria: [Evaluation criteria]
1. How well did you do financially in all four years?
2. How well did you incorporate the advice you received from your “virtual team” and make
decisions? Keep in mind that as a decision maker you can also be evaluated on your ability to
ignore bad advice.
3. How many board votes did you get over the four years? The board members will give your
their vote if you do what pleases them.
This study source was downloaded by 100000853497421 from CourseHero.com on 06-23-2023 01:42:06 GMT -05:00
https://www.coursehero.com/file/18304750/Global-supply-chain-simulation/
