Share
Explore BrainMass

Supply Chain Theory Simulation

Utilize the simulation found at http://forio.com/simulate/jelson/excellentbeerdistrib

There are 2 scenarios on Page 1 and Page 2. On Page 2, choose the KHBC Ad Campaign Scenario-2. Based on the weekly orders from your Retail Customers, you need to determine the weekly amount to order from KHBC. Enter the order and Advance (1 week). You can review the running status of orders and inventory in the table provided. Your goal is to minimize your backlog and your Retail Customers backlog, as well keep your inventories at a minimum.

When the simulation run has ended, copy the data from the Graph to Excel and put it in the attached excel spreadsheet.

After running the simulation, while you are in the simulation, select the Graph tab. then with the mouse right-click on the graph and select copy data. Then paste it into the Excel Worksheet (put the cursor in the designated cell, and do a paste), and save it . You will see that the Graph is done for you automatically.

Part 1: Analyze the data you saved in the Excel file. Write about the situation and explain the results. Also explain the ordering strategy and logic.

Part 2: After completing the report, need to add a section to articulate what was learned and knowledge gained.

Discuss the results and how they compare with the historical Bull Whip affect. Compare the graph of your decisions to the graph of the historical bull whip. Explain your strategy and how you determined it. Explain why your results are the same or different from the historical bull whip results.

Attachments

Solution Preview

Results
During the first week order quantity was 100 which resulted in thus EBBD had inventory was 100 which was shipped to retailers. Orders for the week amounted to 100 weekly orders and 200 accumulated orders. In the second week amount of weekly order amounted to 70 while accumulated retail order was 100. In order to maintain inventory as low as possible 120 units were ordered and order received at EBBD and shipped to retailers was 147 and resulted in accumulated EBBD orders of 173. In the third week weekly retail orders amounted to 180 and accumulated retail orders were 23 but only 170 units were ordered. This resulted in EBBD having an inventory of 87 which was shipped to retailers.
In the fourth week weekly order quantity amounted 205 to satisfy weekly retail order of 180 and accumulated retail order amounting to 116. During the week 107 units were shipped to retailers leaving accumulated EBBD order of 354. Due to the big backlog in retail orders EBBD did not receive weekly retail orders in week 5 but accumulated retail orders amounted to 189 units. Therefore 220 units were ordered to meet retail order and increase EBBD inventory. 126 units were received and shipped to retailers.
In week 6 weekly and accumulated retail orders amounted to 243 units and weekly order quantity amounted to 180 units in order to minimize inventory levels. Accumulated EBBD order for the week amounted to 448 units and 161 units were received and shipped to retailers. In the seventh week 150 units were ordered to weekly retail demand of 168 and accumulated retail orders of 82 units. 194 units were received at EBBD and shipped to retailers. In week 8 weekly retail orders amounted to 156 units and accumulated retail order was 56 units. Weekly order quantity amounted to 190 units to minimize backlog and also keep low inventory levels. 231 units were received at EBBD but only 212 units were shipped to ...

Solution Summary

Supply chain theory simulations are examined.

$2.19