The game play in the simulation that I took part in involved me taking the position of the retailer in the supply and demand chain. The activities of a retailer involved the placing order for the goods from the wholesalers after receiving orders from the customers. The system simulation put in place is programmed to improvise the way every entity in the demand supply chain works towards making goods available to the end user. This starts form the customer to the retailer, then to the wholesaler, the distributor, and then finally the factory where the goods are manufactured. As retailer, I was tasked with placing orders for more root beer to fill the stock according to the customer demand at that particular time.
While one waits for the delivery of goods, the difference in time and decision making in the demand and supply cycle affects the prices and costs of operations like the keeping of inventory and dealing with backlog on the stock available. The system calculates the costs and gives a snapshot of projected costs. The simulation trains retailer on the best way to place orders for stock and inventory keeping to aids in minimization of operational costs in the business.
Operations management requires witted individuals with a positive gut and conclusive knowledge on the best decision making skills and time management. Coming up with viable decisions and executing them on time is essential in accomplishing a favourable business activity. The simulation for example gives a preview of given order, and the retailer has the option for placing a surplus order to close on the deficit that might come up from future need for filling the inventory. All the involved entities in the demand and supply chain are vital to the execution of any business transaction. Any flaw in the decision making process can prove fatal. The information and time in the business should be used appropriately for earning profits. This system simulation provides that emulation.
The concepts of the utilization of this simulation give the ideas for the implementation of the software system platform into various business entities around the world to aid them in better decision making for their businesses. Projections of outcomes of any business are vital in making positive decision for the business for overall profit making. If this system would be utilized on large scale in big manufacturing, supply and demand chains in the market, it would help the various business in managing their operational cost margin for better profit making in the industry. Another idea that comes to mind about this platform is the ability for one to manipulate the figures according to current activities in order to determine the future necessities for the business through anticipating and projecting returns.
Computer-based simulations in general as a learning mechanism are advantageous in giving individuals the knowledge of how the real world market operates. It focuses on the various unforeseen variations that might affect one’s decision about their business. Simulations are meant to give one the skill and knowledge on dealing with the real world activities and decision making processes in the supply and demand chain. The root beer game is educative and advises business owners on how to save on both the weekly and cumulative costs of operating the business. In the long run a business individual (retailer) saves on costs and increases profit margins substantially.
References
Campuzano, F., & Mula, J. (2011). Supply chain simulation: A system dynamics approach for improving performance. London: Springer.
Supply Chain Management Simulation (2013). The Root Beer Game. Last retrieved from the forio website: http://forio.com/simulation/harvard-business-school-root-beer-game-demo/index.htm?r=729#page=summary
D'Apice, C. (2010). Modeling, simulation, and optimization of supply chains: A continuous approach. Philadelphia: Society for Industrial and Applied Mathematics.
