Learning Exercise

SCM Simulation

This week you will gain some practical experience using a simulation. You will need to go to https://www.merlot.org/merlot/viewAssignment.htm?id=1362893Links to an external site. and read the learning objectives and instructions there. Once you have read the information on the first site, go to this URL https://forio.com/simulate/mbean/near-beer-game/run/#p=page0Links to an external site. to play the game and begin the simulation.) Perform this simulation (either the novice or the expert version) for 25 weeks (in the simulation) OR until you reach equilibrium. (Note that you can do this simulation in one night, and I recommend that you do because the simulation will reset after a period of time. The "weeks" is just how many times you place inputs because it takes a week to get the inventory in to make the product.) Record, in table format (that you create in Excel), your new customer orders (each week for the 25 weeks or until you reach equilibrium), your excess inventory (each week for 25 weeks or until you reach equilibrium) and the number of raw materials you ordered that week for the next. (Note you can include other items in the table if you wish. However, these numbers should help you to analyze what you did and the effect of what you did for the week in comparison to demand. Be sure to place the inputs into your Excel table before clicking to the next week. You may forget your inputs from week to week, especially if it takes a while to reach equilibrium.) Upon completing the simulation, write a paper discussing what you learned from the simulation. Be sure to discuss the impact of the bullwhip effect in your discussion, what inventory shortages you experienced along with the lost orders experienced, whether you had more inventory than orders, how you made your decision to adjust your production/raw materials to meet customer demand, and what challenges and problems you experienced. The paper should be written in APA 7th ed. form. Additionally, the paper should be a minimum of two pages, excluding the table and references (if you use references). Submit the assignment to Canvas by midnight on Sunday of week 2. Contact me with any questions. Note that everyone’s results will be different, so do not work together for your inputs.

Extra Notes on Week 2 Assignment:

This learning exercise mainly comes from week 1 reading materials. However, you will also gain knowledge that will help you from week 2 reading materials too. In supply chain management, the more you know the better you typically perform. You will also see, via this exercise, that in supply chain you often do not have every piece of information you need. Sometimes what suppliers promise does not happen when it was promised. Sometimes the market will change on you unexpectedly. There is no way for you to know everything that WILL happen. In real life, you must use all of your knowledge to make the best projections for production no matter what information you have. This exercise brings this fact to reality to most students. Please make sure you have read chapters 1 through 4 of the textbook before completing this simulation. You will gain much more from the exercise if you do. Also, check out the bullwhip effect and the sawtooth model in Chapter 9 of the text. These tw