Supply chain management simulation game

You need to play the simulation game as a Supply Chain Manager and then write a report based on the instructions. Read below:

SIMULATION REPORT
1- Record all your decisions, the logic behind your choices, and their outcomes (for 4 years) on
the Record Sheet
2- Write a report about your simulation experience and explain your takeaways, in terms of:
a. Choice of Options based on Forecasted Information (Design Room)
b. Production Planning (Forecasting Room)
c. Sourcing Strategy (Production Room)
Particularly explain which decisions and strategies helped you gain more profit at every step
of the simulation. Which specific data from the case did you rely on to make those decisions
with best outcomes?
Simulation Report Format: PDF File; maximum 2 pages plus your completed record sheet as
attachments; single-spaced lines; font: Times New Roman 12; 1” margins.

INTRODUCTION TO SIMULATION
In this simulation, you will be the Supply Chain Manager responsible for production of two new
lines of mobile phones (Model A, a base model, and Model B, a high-end model). You will be able
to make key decisions and see the impact of your decisions on the performance of your company.
To manage the supply chain, you will go through four departments annually, for four years. Each
department has a room that you will visit each year.
The sales season is May through December—there is no demand before May or after December.
And to make things simple, we anticipate the demand to be consistent over these months.
1- Design Room
The two models have complete base designs, but you must add up to four options to the base
design. Choose carefully, because options can add or detract from sales. Be sure to pay attention
to the estimated change in demand created by each option, its impact on profit per unit, and other
variables. One important thing to remember: each option you select is automatically added to both
models—you cannot add it to just one model.
2- Forecasting Room
Here, you will predict the monthly demand of the two phone models during each year. Remember,
demand is spread out evenly across all months from May to December. You will enter your
estimates in this room.
3- Production Room
To increase production flexibility, management has decided to outsource all manufacturing, and
four suppliers have been identified. In the simulation, you will be provided with some additional
information on the four suppliers and their policies. You can place orders with one or more of the
four suppliers. As you consider which suppliers to choose, consider lead times, set-up costs, and
capacities. You can spread production across four suppliers over a 12-month period.
Keep a watchful eye on inventory levels, as it will cost you to carry units that are not sold into the
same month, and excess inventory at the end of the year is liquidated below cost.
After choosing suppliers you will advance month by month and observe how accurate your
forecasts were as you notice actual demand numbers replacing your estimations. You will be able
to change your production schedule, but this will require a significant payment to your suppliers
(a penalty cost of $2,000,000 for each change order).
4- Board Room
At the end of the year, you will enter the Boardroom, where you will be able to review your
financial performance and see how well your strategic choices have played out over the year.
When the board meeting ends, you will return to the Design Room to start the next year. You will
repeat the cycle of design, forecasting, production, and board evaluation for four years.
At the end of the simulation, you’ll be a rich and successful business person or out of a job. Good
luck!
Marketing Opportunity
In the simulation, you should decide whether to pursue the below marketing opportunity or not.
Marketing Opportunity: Holding an annual conference called CELLDEX to showcase your
new models and collect valuable customer feedback. By doing so, you will obtain some
new demand estimates for both of your mobile phone lines. These estimates would be much
more accurate than the numbers that you already have. You can set up the event for the end
of March and automatically insert new and better demand estimates directly into your
production schedule at the beginning of April. The downside to creating this event is that
it will be very expensive to set up, as we would need to create a global industry event from
scratch. Our current budget for such an event calls for $2,000,000.

CONTEXT
In recent years, the number of new products being introduced has increased dramatically. At the
same time, the average life cycle of products continues to shrink. Many new products become
obsolete soon after they hit shelves. This is particularly true for high technology products such as
computers and consumer electronics, but it is also true for products such as apparel, footwear, and
household appliances. The consequences arising from this proliferation of new products can
distress both manufacturers and retailers because they lead to mounting inventories of obsolete
products, frequent markdowns, and write offs and stock outs of hot-selling items. Retailers have
responded to the increased risks by becoming lean. They try to reduce their risk by requiring
manufacturers to replenish stock quickly on an ongoing basis.
The challenge facing managers is to predict the demand for their goods more accurately and
use production resources wisely so that supply better matches customer demand. This often
requires rethinking the supply chain to make it more responsive to market and actual demand. New
technologies like POS scanners can provide data about the demand, helping managers resolve
some of these problems. However, to capitalize on such technologies, managers also need better
strategies that allow them to more accurately predict and fulfill demand in a rapidly changing
global economy.

ACCESS TO THE SIMULATION
You can access and purchase the simulation through the following link:
https://hbsp.harvard.edu/import/698531. You can start working on it anytime between March 26-
April 3, which accounts for your coursework for the last two sessions.

SUPPLEMENTARY DOCUMENTS AVAILABLE:
1- GSCMV2 Record Sheet
2- GSCMV2 How to Play Guide

SIMULATION REPORT
1- Record all your decisions, the logic behind your choices, and their outcomes (for 4 years) on
the Record Sheet available on Brightspace.
2- Write a report about your simulation experience and explain your takeaways, in terms of:
a. Choice of Options based on Forecasted Information (Design Room)
b. Production Planning (Forecasting Room)
c. Sourcing Strategy (Production Room)
Particularly explain which decisions and strategies helped you gain more profit at every step
of the simulation. Which specific data from the case did you rely on to make those decisions
with best outcomes?
Simulation Report Format: PDF File; maximum 2 pages plus your completed record sheet as
attachments; single-spaced lines; font: Times New Roman 12; 1” margins.