11/16/2020 OPERATIONS MANAGEMENT SIMULATION How to Play U Introduction In this simulation you will be replenishing stock for a small, franchised hardware store. The store receives shipments once a week, trucked from a central warehouse. Each week, you must decide how many units to order, based on your assumptions about customer demand. Delivery occurs the week following your order, and the game continues for 12 weeks. Each time you play the simulation, you will be responsible for the replenishment of one product. Depending on the configuration selected by your instructor, you might play more than once and encounter different types of product. The following slides introduce you to the products your instructor has selected for you to play. 11/16/2020 OPERATIONS MANAGEMENT SIMULATION Adjustable Wrench Wrenches are necessary for many kinds of jobs in and around the home. If you own an adjustable wrench, you don't need to purchase a whole set of wrenches in different sizes. For this reason, adjustable wrenches are very popular with people who do occasional repairs and don't need professional tools. 11/16/2020 OPERATIONS MANAGEMENT SIMULATION Eco-Friendly Paint In recent years, environmental regulations and consumer demand have led to the development of low-VOC and zero-VOC paint ("eco-friendly paint"), which limits the volatile organic compounds (VOCs) found in traditional paint products. These new paints produce a durable finish and are believed to be less harmful to human health and the environment. 11/16/2020 OPERATIONS MANAGEMENT SIMULATION ROGA SALT . Rock Salt Rock Salt is used after a winter snow storm to melt ice on sidewalks and driveways. It helps to make sidewalks safer and driveways less slippery. 11/16/2020 OPERATIONS MANAGEMENT SIMULATION HARVARD BUSINESS PUBLISHING OPERATIONS MANAGEMENT EXERCISE: INVENTORY BASICS Scenario 1 - Week 1 Rock Salt HOW TO PLAY Holding Cost Ordering Cost 0.07 (unit)(week) $ 6.3 order Initial Mean Demand Last Week's Demand 20 units Please pla 13 units Number of SIMULATE Current Inventory: 17 QUIZ QUESTIONS A Costs You incur three types of costs: 1. Holding Cost - A charge for storing inventory, assessed per unit per week. 2. Ordering Cost - A flat fee for placing an order, regardless of how many units you order. If your order quantity is zero, there is no ordering cost. Ordering cost is assessed in the week when delivery occurs. 3. Stockout Penalty - If you run out of inventory and cannot meet customer demand in any given week, you will receive a stockout penalty for that week. Stockout penalties tend to be very high, so try to avoid stocking out. To start the simulation, click on the 'Simulate' tab on the left. 11/16/2020 OPERATIONS MANAGEMENT SIMULATION Holding Cost Ordering Cost $ 0.04 (unit week) 6.3 order Initial Mean Demand Last Week's Demand 20 units Please place your order which will arrive in Week 3 21 units Number of Units SUBMIT ORDER Current Inventory: 24 Inventory level 5 I'd like to buy 21 Wrenches units 2.5 TT 0 1 2 3 4 5 6 7 8 9 101112 weeks Playing the Simulation On the main screen you'll see the product you're currently managing and information about that product, including holding cost, ordering cost, the initial mean of customer demand, and last week's actual customer demand. In order to advance the simulation, enter the number of units you want to order and click 'Submit Order.' Depending on the configuration you're playing, you'll either advance immediately to the next week, or wait for your instructor to advance everyone at once. When the week advances, a brief animation will show the delivery truck unloading your order from the prior week and customers purchasing inventory during the week. 11/16/2020 OPERATIONS MANAGEMENT SIMULATION 1 N 3 4 5 6 7 8 9 10 11 25 4 25 24 21 21 4 3 20 Inventory Level Beginning of Week Inventory Level After Unloading Customer Demand Inventory Level End of Week Quantity Ordered Order Costs ($) Holding Costs ($) Total Cost incl. Stockout Penalty ($) Total Cumulative Cost ($) 0 6.30 0.12 0.16 0.16 6.42 0.16 6.58 Playing the Simulation, cont. The table at the bottom of the screen will track your weekly progress, including inventory levels and resulting costs. Any penalty costs from a stockout will appear in the Total Weekly Cost row, and the Total Cumulative Cost will build as the weeks progress. In the example above, 20 units were ordered in week 1 and delivered in week 2. The ordering cost for that order was incurred in week 2. Customers bought 21 units in week 1 and again in week 2. A holding cost of $0.04 per unit per week is incurred in week 1, based on the 4 units remaining in inventory at the end of the week. Your goal is to achieve the lowest Total Cumulative Cost relative to your classmates.

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hardyaaron9387 hardyaaron9387

27-12-2022
Social Studies

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11/16/2020 OPERATIONS MANAGEMENT SIMULATION How to Play U Introduction In this simulation you will be replenishing stock for a small, franchised hardware store. The store receives shipments once a week, trucked from a central warehouse. Each week, you must decide how many units to order, based on your assumptions about customer demand. Delivery occurs the week following your order, and the game continues for 12 weeks. Each time you play the simulation, you will be responsible for the replenishment of one product. Depending on the configuration selected by your instructor, you might play more than once and encounter different types of product. The following slides introduce you to the products your instructor has selected for you to play. 11/16/2020 OPERATIONS MANAGEMENT SIMULATION Adjustable Wrench Wrenches are necessary for many kinds of jobs in and around the home. If you own an adjustable wrench, you don't need to purchase a whole set of wrenches in different sizes. For this reason, adjustable wrenches are very popular with people who do occasional repairs and don't need professional tools. 11/16/2020 OPERATIONS MANAGEMENT SIMULATION Eco-Friendly Paint In recent years, environmental regulations and consumer demand have led to the development of low-VOC and zero-VOC paint ("eco-friendly paint"), which limits the volatile organic compounds (VOCs) found in traditional paint products. These new paints produce a durable finish and are believed to be less harmful to human health and the environment. 11/16/2020 OPERATIONS MANAGEMENT SIMULATION ROGA SALT . Rock Salt Rock Salt is used after a winter snow storm to melt ice on sidewalks and driveways. It helps to make sidewalks safer and driveways less slippery. 11/16/2020 OPERATIONS MANAGEMENT SIMULATION HARVARD BUSINESS PUBLISHING OPERATIONS MANAGEMENT EXERCISE: INVENTORY BASICS Scenario 1 - Week 1 Rock Salt HOW TO PLAY Holding Cost Ordering Cost 0.07 (unit)(week) $ 6.3 order Initial Mean Demand Last Week's Demand 20 units Please pla 13 units Number of SIMULATE Current Inventory: 17 QUIZ QUESTIONS A Costs You incur three types of costs: 1. Holding Cost - A charge for storing inventory, assessed per unit per week. 2. Ordering Cost - A flat fee for placing an order, regardless of how many units you order. If your order quantity is zero, there is no ordering cost. Ordering cost is assessed in the week when delivery occurs. 3. Stockout Penalty - If you run out of inventory and cannot meet customer demand in any given week, you will receive a stockout penalty for that week. Stockout penalties tend to be very high, so try to avoid stocking out. To start the simulation, click on the 'Simulate' tab on the left. 11/16/2020 OPERATIONS MANAGEMENT SIMULATION Holding Cost Ordering Cost $ 0.04 (unit week) 6.3 order Initial Mean Demand Last Week's Demand 20 units Please place your order which will arrive in Week 3 21 units Number of Units SUBMIT ORDER Current Inventory: 24 Inventory level 5 I'd like to buy 21 Wrenches units 2.5 TT 0 1 2 3 4 5 6 7 8 9 101112 weeks Playing the Simulation On the main screen you'll see the product you're currently managing and information about that product, including holding cost, ordering cost, the initial mean of customer demand, and last week's actual customer demand. In order to advance the simulation, enter the number of units you want to order and click 'Submit Order.' Depending on the configuration you're playing, you'll either advance immediately to the next week, or wait for your instructor to advance everyone at once. When the week advances, a brief animation will show the delivery truck unloading your order from the prior week and customers purchasing inventory during the week. 11/16/2020 OPERATIONS MANAGEMENT SIMULATION 1 N 3 4 5 6 7 8 9 10 11 25 4 25 24 21 21 4 3 20 Inventory Level Beginning of Week Inventory Level After Unloading Customer Demand Inventory Level End of Week Quantity Ordered Order Costs ($) Holding Costs ($) Total Cost incl. Stockout Penalty ($) Total Cumulative Cost ($) 0 6.30 0.12 0.16 0.16 6.42 0.16 6.58 Playing the Simulation, cont. The table at the bottom of the screen will track your weekly progress, including inventory levels and resulting costs. Any penalty costs from a stockout will appear in the Total Weekly Cost row, and the Total Cumulative Cost will build as the weeks progress. In the example above, 20 units were ordered in week 1 and delivered in week 2. The ordering cost for that order was incurred in week 2. Customers bought 21 units in week 1 and again in week 2. A holding cost of $0.04 per unit per week is incurred in week 1, based on the 4 units remaining in inventory at the end of the week. Your goal is to achieve the lowest Total Cumulative Cost relative to your classmates.

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