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