ScrimmageSim Business Simulation Ordering Exercise Instructions

ScrimmageSim Business Simulation
Ordering Exercise Instructions
Summary:
Tenant: 500
User: in the grades section of elearning
Password: password
Demand: 10 cases with standard deviation of 1 case
Ordering Cost: $10
Inventory Holding Rate: 20% of COGS
Sales Price: $51.79 per case
COGS: $23.97 per case
©2014 Bret J. Wagner Ph.D.
Open your browser to the web site scrimmagesim.com, then click on Access
Simulation:
Click on Access Simulation
Then click on Log In:
2 Click on Log In
Enter your account information (Tenant, UserId and Password) then click on Log
in:
Enter account data
If this is your first time logging into the system, you will be required to reset your
password:
Reset Password
3 After resetting your password, you will be at the main menu. Two simulations are
available: Ordering and ROP. Select the Ordering simulation:
Select Ordering
This will produce the following screen:
Select the Waldo Mart Reordering Scenario
Selecting the Waldo Mart Reordering Scenario will produce the following screen,
which lists the nine runs available for your simulation. You can change the
description of the run to help you manage your different simulation runs. Do this
by clicking on the pencil icon in the data grid:
4 Click on the pencil icon to edit the description
Type the new description, then click on the save icon:
Type new description, then click on the save icon
To confirm the new description in the pull-down list, click on the refresh icon.
Note that you do not have to do this for the correct description to be used by the
simulation:
5 Pull-down list has old description—refresh
the web page to get the new description
After refreshing the pull-down list, select the run:
Select first run
With the scenario and run selected, the main menu of the simulation is displayed,
along with the container details (tenant, scenario and run):
6 Container details
To look at the demand history, select Orders under the Demand menu:
Select Demand!Orders
This will display the order history for the previous year. Note that the demand
comes from a normal distribution with mean = 10 and standard deviation = 1:
7 Click Return to go back to the main menu
Note that the data is split to multiple pages
You can display the order history graphically by following the menu path
Demand!Graph:
and you will get the following screen:
Select the Material AliCat Ale
Then click Draw Graph:
8 Click on Draw Graph
This will produce the following graph:
Click Return to go back to the main menu
Click Return to get back to the main menu, then follow the menu path
Inventory!Status:
9 This will produce the following screen:
Note that the initial inventory
for the simulation is 150 cases
Click on the Open Window icon to keep this screen open and work in a new tab:
Click on Open Window to get a second tab
10 This will produce the following window:
This window will show a graph of the inventory level for up to three different
materials (products) during the simulation. There is only one material in this
simulation—AliCat Ale—so select this material and then click on Draw Graph:
Select AliCat Ale, then click on Draw Graph
The graph currently shows just one data point as the simulation is at the
beginning for this run:
11 First data point
Click on the Open Window icon to get another browser tab:
Click on Open Window to get a new tab
Then select the menu path Results!Financial Statement:
12 This screen provides a pseudo-financial statement for Waldo Mart:
This statement shows only the basic items needed to support the simulation.
The company stats with the asset of 150 cases of AliCat Ale, which have a value
of $3,596. Maximum net income is the goal of the simulation.
For this simulation, manually advancing the simulation time will produce the best
results. To do this, open a new window and use the menu path
Simulation!Manual:
13 This will produce the following screen:
Click on Increment Time
This screen allows the user to advance the simulation one increment at a time.
In the case of the Waldo Mart simulation, the time increment is equal to one day,
so clicking on the Increment Time button advances time one day. Clicking
Increment Time produces the following screen:
Time has advanced one day
Switch to the Inv Status tab to view Waldo Mart’s Inventory:
14 Inventory still shows 150 cases, as
the screen does not automatically
update. Click update to refresh the
data shown on the screen
Clicking on update produces the following inventory status report:
Inventory is now 140 cases
Switch to the Inventory History tab:
15 Click on the Draw Graph
icon to refresh the data
Clicking on the Draw Graph icon will refresh the graph data:
The graph now shows the
change in inventory
Finally, click on the Financial Statement tab:
16 Click on the Update icon to refresh the financial statement data:
Click on the Update
to refresh the data
Note that there are changes to the financial statement. On the income statement
side, there is now a sales figure, a cost of goods sold figure and an inventory
expense figure. The Net Income figure is sales minus the costs (COGS, order
expense and inventory expense). Your goal for the simulation is have the
maximize net income over the simulation period of three months.
The goal is to maximize net income
Return to the simulation tab, then advance the simulation to January 6:
17 Click on Increment Time until it is January 6
Switch to the inventory history screen and click on Draw Graph to update the
date:
Click on the Draw Graph
icon to refresh the data
You can see the inventory is decreasing in a fairly linear (straight line) pattern.
Continue increment the simulation time until the inventory level is under 30.
Switch to the Inventory Status tab to confirm your inventory level:
18 Click on Open Window to get a new tab
Inventory is below 30
In the new tab, select Purchase from the menu:
Select Purchase
Select the (only) line, which is for AliCat Ale:
Click on Select
Clicking on Select will produce the following window:
19 Enter 150 for Quantity, then click
on Create Purchase Order
Enter 150 for Quantity and then click on Create Purchase Order and the PO
information will show in the grid:
Purchase Order for 150
cases has been created
20 Switch to the Run Simulation tab and increment the simulation one day:
Increment the simulation one day
Switch to the Inv Status tab and click on update:
Click on Update and note the
purchase order has been received
Next, switch to the Inventory History tab and click Draw Graph to refresh the
data:
21 Click Draw Graph to refresh
Finally, switch to the Financial Statement tab and click on update:
Order Expense is now shown
Switch to the Run Simulation tab and advance the simulation date to February
1:
22 Increment the simulation to February 1
Then switch to the Inventory History graph and click on Draw Graph:
Click on Draw Graph and note
the current inventory level
Switch to the Inv Status tab and update the data:
23 Note that there is only
1 case in inventory
In this simulation, if there is not enough inventory to fulfil the daily demand, no
cases will be sold that day. To see what sales have been lost, click on the Open
Window icon and then select the menu path Inventory!Lost Sales:
This will bring up the following screen:
24 Note that are were 10
cases of lost sales
Lost sales have a significant impact on net income. With a sales price of $51.79
per case and a COGS of $23.97 per case, not selling 10 cases will cost
$51.79 − $23.97 𝑥10 = $272.80
so a simulation run with lost sales WILL NOT deliver the highest net income.
Because the simulation will not turn out to be the lowest cost, we should start
over. To do this, click on the Run Simulation tab and click on Return:
Click on Return
To start over with this run, follow the menu path Simulation!Rebuild Run:
25 Select Simulation! Rebuild Run
and click OK on the popup window:
Click OK
Click on the Inventory History tab and click on the Draw Graph icon to confirm
that the simulation has been reset:
26 Run The Simulation
Operate the simulation, placing purchase orders when necessary, until the
simulation time is April 1:
Simulation is complete at April 1
To save the results of the simulation for grading, click on Return to get to the
main menu and then follow the menu path Containers!Run!Save as Graded:
Select the first run, which is the run we were using:
27 Select First Run
Clicking on Select will produce the following confirmation screen:
Click on Return:
then click on Return again to get to the main menu. To help manage your
simulation runs, you can access the run summary through the menu path
Container!Run!Run Summary:
28 The run summary will give you the details of all 9 runs plus the graded run:
Use the return icon to get back to the main menu, then follow the menu path
Results!Comparison:
29 This results summary will allow you to compare your simulation results to those
submitted by your colleagues. The report is sorted by net income as the default:
30 Managing Simulation Runs
You have nine simulation runs with which to experiment, and one graded run.
You cannot select the graded run directly, but can only save one of your nine
runs as the graded run.
After your first run, use a different run to try a different strategy. To do this, use
the menu path Containers!Run!Select Run:
Remember that you can rename the run to help you manage your different runs
and strategies:
31