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    Erp Sim

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    Gautam D
    The document summarizes the key strategies and results from a team's participation in the ERPsim simulation game over 3 rounds. Some of the main points included: - In the initial round, the team focused on variants with strong market share and profits of $634k. - In round 2, they shifted production to variants with the least sales and had profits of $1.9M. - For the final round, they continued focusing on high selling variants and had their highest profits of $3.1M and margins. - Areas for improvement include getting more market data, fixing issues with the Lumira software used, and gathering intel on competitors.

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    Erp Sim

    Uploaded by

    Gautam D
    415 views17 pages
    The document summarizes the key strategies and results from a team's participation in the ERPsim simulation game over 3 rounds. Some of the main points included: - In the initial round, the team focused on variants with strong market share and profits of $634k. - In round 2, they shifted production to variants with the least sales and had profits of $1.9M. - For the final round, they continued focusing on high selling variants and had their highest profits of $3.1M and margins. - Areas for improvement include getting more market data, fixing issues with the Lumira software used, and gathering intel on competitors.

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    ERP SIM

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    ERP SIM

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    The document summarizes the key strategies and results from a team's participation in the ERPsim simulation game over 3 rounds. Some of the main points included: - In the initial round, the team focused on variants with strong market share and profits of $634k. - In round 2, they shifted production to variants with the least sales and had profits of $1.9M. - For the final round, they continued focusing on high selling variants and had their highest profits of $3.1M and margins. - Areas for improvement include getting more market data, fixing issues with the Lumira software used, and gathering intel on competitors.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    415 views17 pages

    Erp Sim

    Uploaded by

    Gautam D
    The document summarizes the key strategies and results from a team's participation in the ERPsim simulation game over 3 rounds. Some of the main points included: - In the initial round, the team focused on variants with strong market share and profits of $634k. - In round 2, they shifted production to variants with the least sales and had profits of $1.9M. - For the final round, they continued focusing on high selling variants and had their highest profits of $3.1M and margins. - Areas for improvement include getting more market data, fixing issues with the Lumira software used, and gathering intel on competitors.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 17

    ERPsim Post

    Game Analysis
    By
    Vigneswaran Padmanaban
    Bernice Somnath
    Kaushal Mandayam
    Rohan Vashisht
    1. Our Initial Strategy
    2. Rounds I, II & III
    3. Final results
    4. So what went wrong?!
    5. Scope for improvement

    Chapters
    • Invest $167,000 and reduce setup time to 8 hours
    • BOMs: 5 variants in 500g boxes and 1 variant in 1Kg box
    • Selling Price = COGS + $2.5/$2.4/$2.3 in DC14, 12 & 10 respectively
    • Advertise one product per region. Allowance: $15 per product per day
    • Forecast initially for 50,000 boxes each in all variants
    • Maximize profits with minimal production
    • Manufacture the products that we solely dominate or have the least sales
    in the market

    1. Our Initial Strategy


    • Found we had strong market share in 500g Original & 500g Raisin
    • Shifted production from 6 to the above 2 variants
    • Ran periodic MRP
    • Lost focus and delayed MRP – no production for almost 2 days
    • Market domination - set S.P. above market average
    • Net Income - $634,851 (Gross Margin: 69.3%, Net Margin: 34.8%)
    • Productivity – 72.7%

    2. Round I
    Round I Production
    Round I Sales & Pricing
    • Found 1Kg Mixed Fruit had least sales in Round 1. So altered BOM
    • Focused on 1Kg Mixed Fruit & 500g Original Muesli
    • Competitor for 500g Muesli – matched S.P. to market average
    • 70% of total market sales in 1Kg Mixed Fruit - set S.P. above market
    average
    • Net Income - $1.9 million (Gross Margin: 69%, Net Margin: 41%)
    • Productivity – 94%

    Round II
    Round II Production
    Round II Sales & Pricing
    • Found 500g Mixed Fruit Muesli had least sales in Round 2. Altered BOM
    • Focused on (500g +1Kg) Mixed Fruit & 500g Original Muesli
    • Big bet – 250,000 boxes of 500g Mixed Fruit in one stretch
    • Increased advertising and slashed prices. Yet less sales till 29th day.
    • 1Kg Mixed and 500g Original sales save the day!
    • Net Income - $3.13 million (Gross Margin: 64%, Net Margin: 43%)
    • Productivity – 89%

    Round III
    Round III Production
    Round III Sales of 500g Mix Fruit Muesli
    Round III Sales & Pricing
    • Second highest net income - $3.1 million
    • Highest gross margin - 64.4%
    • Highest net margin - 43.34%
    • Least warehouse expense - $9,750
    • 1Kg Mixed Fruit Muesli - 71% of total market sales
    • 500g Original Muesli - 43% of total market sales

    3. Final Results
    • MRP for 250,000 boxes of 500g Mixed Fruit in one stretch
    • Exponential advertisement expenditures by Team Y
    • High volume sales by Team Z in Round 3

    Raw Materials Warehousing Sales Revenue


    723,099.60 2,750.00 2,619,112.05
    Team T
    1,141,965.47 186,700.00 3,662,166.02
    Team Z

    4. So what went wrong?!


    • Data about average market expenditures for advertising

    • Lumira – crashes frequently and does not support multiple windows

    • Data about competitor recipes

    5. Scope for improvement


    Thank you!

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