SIM

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Introduction.pdf

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ERP Simulation Game

Pierre-Majorique LÉGER Jacques ROBERT Gilbert BABIN

A Serious Game for Learning Enterprise Resource Planning Concepts

Robert PELLERIN Bret WAGNER

Logistics Game

LOGISTICS INTRODUCTION

Last Update: July 13, 2021

Welcome to Your New Job!

Your Company

Dairy Wholesaler

Your Products

Cost, Initial Pricing, and Replenishment

MILK $$-T01 CREAM $$-T02 YOGHURT $$-T03 CHEESE $$-T04 BUTTER $$-T05 ICE CREAM $$-T06

Product cost €22.95 €72.07 €25.85 €82.68 €59.88 €43.15

Initial price €25.25 €79.78 €28.43 €90.95 €65.87 €47.47

Qty. received every 5 days 950 300 700 350 400 300

The Market Preferences Each region has unique preferences related to the products it wishes to purchase from your company.

Hesse

West

South

North Brandenbourg

Mecklenbourg Western

Saxony

Lower Saxony

Saxony Anhalt

Schleswig Holstein

Thuringia

Rhineland Palatinate

Baden Wurttemberg

Bavaria

Hamburg

Berlin

North Rhine-Westphalia

Bremen

Distribution Channel 16 (Retailers)

One single price list

Hesse

West

South

North Brandenbourg

Mecklenbourg Western

Saxony

Lower Saxony

Saxony Anhalt

Schleswig Holstein

Thuringia

Rhineland Palatinate

Baden Wurttemberg

Bavaria

Hamburg

Berlin

Saarland

North Rhine-Westphalia

Bremen

4 Stores

One Single Price List

You will need to setup prices for your products. The price for each product will be applied in all 3 regions.

DC16

Game Design

Logistics Game Design

DAIRY COOPERATIVE (SUPPLIER)

North

South

West

MAIN WAREHOUSE

REGIONAL STORAGE LOCATIONS

North

South

West

Transportation and Warehousing Costs You will have to manage transportation and warehousing costs in order to maximize profit.

€100 per regional transfer

DAIRY COOPERATIVE MAIN WAREHOUSE

WAREHOUSING COSTS

Base Capacity (sum of all storage locations) 4 000 units

Extra daily fee for each additional 1 000 boxes €50

Two Transportation Strategies You must determine a logistics strategy in order to make your products available for sales through your regional storage locations.

North

South

West

MAIN WAREHOUSE

PULL OR

PUSH

A Push Logistics Strategy

North

South

West

MAIN WAREHOUSE PUSH

A “Push” strategy specifies the quantity of each product to be delivered to each location.

The defined quantity of each product will be shipped to each location according to the delivery schedule, which defines the delay between each shipment.

A Pull Logistics Strategy

PULL

North

South

West

MAIN WAREHOUSE

A “Pull” strategy specifies the target quantity for each product in each location.

The difference between the target quantity and the inventory available in each location is calculated and shipped according to the delivery schedule.

Game Layout

Logistics Introduction Game

PLAN STOCK TRANSFER

Stock Transfer (ZMB1B)

1 Select between a Push or Pull Planning Mode

2 In Scheduling, enter your delivery frequency

3 Enter the amount of each product you wish to send/ maintain in each region

MAINTAIN PRICES

Change Price List (VK32)

1 Open the Prices folder and double click on Price list

2 Verify Distribution Channel is 16

3 4 Modify your prices

FINANCIAL STATEMENTS

Financial Statements (F.01)

1 In Company Code, enter your <company code>*

2 GUI step Select ALV Tree Control

FIORI step In Statement Version, enter SIM1

3 GUI step FIORI step

STOCK LEVELS

Inventory Report (ZMB52)

Shows the stock levels for all the products in the main warehouse and the three regional storage locations

SALES DATA

Summary Sales Report (ZVC2)

Shows aggregate daily sales by product

Detailed Sales Report (ZVA05)

Shows sales related info such as sales revenue by region

1/2ReportsSalesLogistics

ZMB1B Stock Transfer

VK32 Change Price List

ZMB52 Inventory Report

ZVC2 Summary Sales

Report

ZVA05 Detailed Sales

Report

F.01 Financial

Statements

Products (Main Warehouse)

Products (Storage Locations)

Logistics Process Sales Process

TR A

N SA

CT IO

N S

R EP

O RT

Logistics Game Last Update: June 30, 2021

Adapted for Fiori and for SAP GUI with Fiori Visual Theme Activated$_1 to $_9

ERPSIM

User:

Initial password: © ERPsim Lab, HEC Montréal

Adapted for Fiori and for SAP GUI with Fiori Visual Theme Activated$_1 to $_9

ERPSIM

User:

Initial password: © ERPsim Lab, HEC Montréal

*To find your company code, refer to transaction ZORG (Organizational Structure)

Rules and Additional Information

Determining Company Value

This formula is adapted from the standard Dividend Discount Model (DDM) for stock valuation, assuming no growth and 100% dividend payout.

In this game, your company discount rate remains constant throughout the game. Therefore, your company valuation is determined by profit.

Company Value

Yearly Profit

Company Discount Rate

(Current Profit / Nb. Rounds Played) * 8 = Market Risk Rate + Company Risk Rate

No stock, no sale.

Customer preferences do not change throughout the same game.

The company displaying the highest company valuation at the end of the simulation wins the game.

You must behave ethically at all times.

The end of game inventory will be valued at cost price in the final balance sheet. Therefore, you shouldn’t sell under cost at any time during the game.

1 2 3 4

The Major Rules

Elements of a Winning Strategy

Use the ERP system efficiently

Do not run out of stock. No advanced orders - no stock, competitor will get the sale

Delays and liquidity constraints are important elements of the game

Exploration and exploitation

Team organization is more important than you think

Use the ERP system efficiently

Delays and costs are important elements of the game

Explore different strategies and learn from mistakes

Team organization is more important than you think

Have fun!

Use the ERP system efficiently

Do not run out of stock. No advanced orders - no stock, competitor will get the sale

Delays and liquidity constraints are important elements of the game

Exploration and exploitation

Team organization is more important than you think

Participant’s Job Aid

Logistics Introduction Game

PLAN STOCK TRANSFER

Stock Transfer (ZMB1B)

1 Select between a Push or Pull Planning Mode

2 In Scheduling, enter your delivery frequency

3 Enter the amount of each product you wish to send/ maintain in each region

MAINTAIN PRICES

Change Price List (VK32)

1 Open the Prices folder and double click on Price list

2 Verify Distribution Channel is 16

3 4 Modify your prices

FINANCIAL STATEMENTS

Financial Statements (F.01)

1 In Company Code, enter your <company code>*

2 GUI step Select ALV Tree Control

FIORI step In Statement Version, enter SIM1

3 GUI step FIORI step

STOCK LEVELS

Inventory Report (ZMB52)

Shows the stock levels for all the products in the main warehouse and the three regional storage locations

SALES DATA

Summary Sales Report (ZVC2)

Shows aggregate daily sales by product

Detailed Sales Report (ZVA05)

Shows sales related info such as sales revenue by region

1/2ReportsSalesLogistics

ZMB1B Stock Transfer

VK32 Change Price List

ZMB52 Inventory Report

ZVC2 Summary Sales

Report

ZVA05 Detailed Sales

Report

F.01 Financial

Statements

Products (Main Warehouse)

Products (Storage Locations)

Logistics Process Sales Process

TR A

N SA

CT IO

N S

R EP

O RT

Logistics Game Last Update: June 30, 2021

Adapted for Fiori and for SAP GUI with Fiori Visual Theme Activated$_1 to $_9

ERPSIM

User:

Initial password: © ERPsim Lab, HEC Montréal

Adapted for Fiori and for SAP GUI with Fiori Visual Theme Activated$_1 to $_9

ERPSIM

User:

Initial password: © ERPsim Lab, HEC Montréal

CUSTOMERS

Payment Time 4 days Approximate Market Size €12 000 per team/day

SUPPLIERS Payment Time 5 days

TRANSPORTATION FEES

Purchasing Cost (from supplier to main warehouse) €1 000

Main Warehouse to Regional Storage Locations €100

AUTOMATED INVENTORY REPLENISHMENT

PRODUCT CODE DESCRIPTION UNITS

$$-T01 Milk 950 $$-T02 Cream 300 $$-T03 Yoghurt 700 $$-T04 Cheese 350 $$-T05 Butter 400

$$-T06 Ice Cream 300

Current Space (Units) (maximum capacity without additional fees) 4 000

Daily Cost per Additional 1 000 Units €50

2/2

Logistics Introduction GameLogistics Game

Hesse

Brandenbourg

Mecklenbourg Western

Saxony

Lower Saxony

Saxony Anhalt

Schleswig Holstein

Thuringia

Rhineland Palatinate

Baden Wurttemberg

Bavaria

Hamburg

Berlin

North Rhine-Westphalia

Bremen

North

West

South 4

Stores

4 Stores

Milk ($$-T01)

Starting Inventory 950 units

Unit Cost €22.95

Cream ($$-T02)

Starting Inventory 300 units

Unit Cost €72.07

Yoghurt ($$-T03)

Starting Inventory 700 units

Unit Cost €25.85

Cheese ($$-T04)

Starting Inventory 350 units

Unit Cost €82.68

Butter ($$-T05)

Starting Inventory 400 units

Unit Cost €59.88

Ice Cream ($$-T06)

Starting Inventory 300 units

Unit Cost €43.15

Last Update: June 30, 2021

Adapted for Fiori and for SAP GUI with Fiori Visual Theme Activated$_1 to $_9

ERPSIM

User:

Initial password: © ERPsim Lab, HEC Montréal

Lab Serious games to learn enterprise systems and business analytics

ERP Simulation Game

Pierre-Majorique LÉGER Jacques ROBERT Gilbert BABIN

http://erpsim.hec.ca

A Serious Game for Learning Enterprise Resource Planning Concepts

Robert PELLERIN Bret WAGNER

GUIDEGUIDE PARTICIPANT’S

LOGISTICS

Logistics Dairy Game

Available at https://erpsim.hec.ca/en/node/274

Participant’s Guide

1 ROUND 1

Client will be provided by the instructor

User : $_1 to $_9 Where $ is your team letter

Password: ERPSIM

Transaction ZORG: Organizational Structure

1 ROUND 1

Check Stock Levels

Logistics Introduction Game

PLAN STOCK TRANSFER

Stock Transfer (ZMB1B)

1 Select between a Push or Pull Planning Mode

2 In Scheduling, enter your delivery frequency

3 Enter the amount of each product you wish to send/ maintain in each region

MAINTAIN PRICES

Change Price List (VK32)

1 Open the Prices folder and double click on Price list

2 Verify Distribution Channel is 16

3 4 Modify your prices

FINANCIAL STATEMENTS

Financial Statements (F.01)

1 In Company Code, enter your <company code>*

2 GUI step Select ALV Tree Control

FIORI step In Statement Version, enter SIM1

3 GUI step FIORI step

STOCK LEVELS

Inventory Report (ZMB52)

Shows the stock levels for all the products in the main warehouse and the three regional storage locations

SALES DATA

Summary Sales Report (ZVC2)

Shows aggregate daily sales by product

Detailed Sales Report (ZVA05)

Shows sales related info such as sales revenue by region

1/2ReportsSalesLogistics

ZMB1B Stock Transfer

VK32 Change Price List

ZMB52 Inventory Report

ZVC2 Summary Sales

Report

ZVA05 Detailed Sales

Report

F.01 Financial

Statements

Products (Main Warehouse)

Products (Storage Locations)

Logistics Process Sales Process

TR A

N SA

CT IO

N S

R EP

O RT

Logistics Game Last Update: June 30, 2021

Adapted for Fiori and for SAP GUI with Fiori Visual Theme Activated$_1 to $_9

ERPSIM

User:

Initial password: © ERPsim Lab, HEC Montréal

Adapted for Fiori and for SAP GUI with Fiori Visual Theme Activated$_1 to $_9

ERPSIM

User:

Initial password: © ERPsim Lab, HEC Montréal

*To find your company code, refer to transaction ZORG (Organizational Structure)

Plan Transfer Strategy

1 ROUND 1

Logistics Introduction Game

PLAN STOCK TRANSFER

Stock Transfer (ZMB1B)

1 Select between a Push or Pull Planning Mode

2 In Scheduling, enter your delivery frequency

3 Enter the amount of each product you wish to send/ maintain in each region

MAINTAIN PRICES

Change Price List (VK32)

1 Open the Prices folder and double click on Price list

2 Verify Distribution Channel is 16

3 4 Modify your prices

FINANCIAL STATEMENTS

Financial Statements (F.01)

1 In Company Code, enter your <company code>*

2 GUI step Select ALV Tree Control

FIORI step In Statement Version, enter SIM1

3 GUI step FIORI step

STOCK LEVELS

Inventory Report (ZMB52)

Shows the stock levels for all the products in the main warehouse and the three regional storage locations

SALES DATA

Summary Sales Report (ZVC2)

Shows aggregate daily sales by product

Detailed Sales Report (ZVA05)

Shows sales related info such as sales revenue by region

1/2ReportsSalesLogistics

ZMB1B Stock Transfer

VK32 Change Price List

ZMB52 Inventory Report

ZVC2 Summary Sales

Report

ZVA05 Detailed Sales

Report

F.01 Financial

Statements

Products (Main Warehouse)

Products (Storage Locations)

Logistics Process Sales Process

TR A

N SA

CT IO

N S

R EP

O RT

Logistics Game Last Update: June 30, 2021

Adapted for Fiori and for SAP GUI with Fiori Visual Theme Activated$_1 to $_9

ERPSIM

User:

Initial password: © ERPsim Lab, HEC Montréal

Adapted for Fiori and for SAP GUI with Fiori Visual Theme Activated$_1 to $_9

ERPSIM

User:

Initial password: © ERPsim Lab, HEC Montréal

*To find your company code, refer to transaction ZORG (Organizational Structure)

Maintain Prices for DC 16

1 ROUND 1

Logistics Introduction Game

PLAN STOCK TRANSFER

Stock Transfer (ZMB1B)

1 Select between a Push or Pull Planning Mode

2 In Scheduling, enter your delivery frequency

3 Enter the amount of each product you wish to send/ maintain in each region

MAINTAIN PRICES

Change Price List (VK32)

1 Open the Prices folder and double click on Price list

2 Verify Distribution Channel is 16

3 4 Modify your prices

FINANCIAL STATEMENTS

Financial Statements (F.01)

1 In Company Code, enter your <company code>*

2 GUI step Select ALV Tree Control

FIORI step In Statement Version, enter SIM1

3 GUI step FIORI step

STOCK LEVELS

Inventory Report (ZMB52)

Shows the stock levels for all the products in the main warehouse and the three regional storage locations

SALES DATA

Summary Sales Report (ZVC2)

Shows aggregate daily sales by product

Detailed Sales Report (ZVA05)

Shows sales related info such as sales revenue by region

1/2ReportsSalesLogistics

ZMB1B Stock Transfer

VK32 Change Price List

ZMB52 Inventory Report

ZVC2 Summary Sales

Report

ZVA05 Detailed Sales

Report

F.01 Financial

Statements

Products (Main Warehouse)

Products (Storage Locations)

Logistics Process Sales Process

TR A

N SA

CT IO

N S

R EP

O RT

Logistics Game Last Update: June 30, 2021

Adapted for Fiori and for SAP GUI with Fiori Visual Theme Activated$_1 to $_9

ERPSIM

User:

Adapted for Fiori and for SAP GUI with Fiori Visual Theme Activated$_1 to $_9

ERPSIM

User:

*To find your company code, refer to transaction ZORG (Organizational Structure)

Sales Reports

1 ROUND 1

Logistics Introduction Game

PLAN STOCK TRANSFER

Stock Transfer (ZMB1B)

1 Select between a Push or Pull Planning Mode

2 In Scheduling, enter your delivery frequency

3 Enter the amount of each product you wish to send/ maintain in each region

MAINTAIN PRICES

Change Price List (VK32)

1 Open the Prices folder and double click on Price list

2 Verify Distribution Channel is 16

3 4 Modify your prices

FINANCIAL STATEMENTS

Financial Statements (F.01)

1 In Company Code, enter your <company code>*

2 GUI step Select ALV Tree Control

FIORI step In Statement Version, enter SIM1

3 GUI step FIORI step

STOCK LEVELS

Inventory Report (ZMB52)

Shows the stock levels for all the products in the main warehouse and the three regional storage locations

SALES DATA

Summary Sales Report (ZVC2)

Shows aggregate daily sales by product

Detailed Sales Report (ZVA05)

Shows sales related info such as sales revenue by region

1/2ReportsSalesLogistics

ZMB1B Stock Transfer

VK32 Change Price List

ZMB52 Inventory Report

ZVC2 Summary Sales

Report

ZVA05 Detailed Sales

Report

F.01 Financial

Statements

Products (Main Warehouse)

Products (Storage Locations)

Logistics Process Sales Process

TR A

N SA

CT IO

N S

R EP

O RT

Logistics Game Last Update: June 30, 2021

Adapted for Fiori and for SAP GUI with Fiori Visual Theme Activated$_1 to $_9

ERPSIM

User:

Adapted for Fiori and for SAP GUI with Fiori Visual Theme Activated$_1 to $_9

ERPSIM

User:

*To find your company code, refer to transaction ZORG (Organizational Structure)

Financial Statements 1 ROUND 1

Logistics Introduction Game

PLAN STOCK TRANSFER

Stock Transfer (ZMB1B)

1 Select between a Push or Pull Planning Mode

2 In Scheduling, enter your delivery frequency

3 Enter the amount of each product you wish to send/ maintain in each region

MAINTAIN PRICES

Change Price List (VK32)

1 Open the Prices folder and double click on Price list

2 Verify Distribution Channel is 16

3 4 Modify your prices

FINANCIAL STATEMENTS

Financial Statements (F.01)

1 In Company Code, enter your <company code>*

2 GUI step Select ALV Tree Control

FIORI step In Statement Version, enter SIM1

3 GUI step FIORI step

STOCK LEVELS

Inventory Report (ZMB52)

Shows the stock levels for all the products in the main warehouse and the three regional storage locations

SALES DATA

Summary Sales Report (ZVC2)

Shows aggregate daily sales by product

Detailed Sales Report (ZVA05)

Shows sales related info such as sales revenue by region

1/2ReportsSalesLogistics

ZMB1B Stock Transfer

VK32 Change Price List

ZMB52 Inventory Report

ZVC2 Summary Sales

Report

ZVA05 Detailed Sales

Report

F.01 Financial

Statements

Products (Main Warehouse)

Products (Storage Locations)

Logistics Process Sales Process

TR A

N SA

CT IO

N S

R EP

O RT

Logistics Game Last Update: June 30, 2021

Adapted for Fiori and for SAP GUI with Fiori Visual Theme Activated$_1 to $_9

ERPSIM

User:

Adapted for Fiori and for SAP GUI with Fiori Visual Theme Activated$_1 to $_9

ERPSIM

User:

*To find your company code, refer to transaction ZORG (Organizational Structure)

* To find your company code, refer to transaction ZORG (Organizational Structure)

Check Company Valuation

1 ROUND 1

Let’s play round 1: 10 virtual days

Debriefing Round 1

What are your first impressions?

How was the communication during Round 1?

What information was exchanged among teammates?

Who took the decisions in your team?

Were you satisfied with the organization in your team?

1 2 3 4 5

2 ROUND 2

Let’s play round 2: 10 virtual days

Debriefing Round 2

How was the communication during Round 2?1 2 3 4

What information was exchanged among teammates?

Who took the decisions in your team?

Were you satisfied with the organization in your team?

3 ROUND 3

Let’s play round 3: 10 virtual days

Debriefing Round 3

What are your impressions of an ERP?1 2 3 4

How were the decisions made?

Based on your experience, what is an enterprise system? How do you think an enterprise system could transform an organization?

Execute MRP

4 ROUND 4

Let’s play round 4: 10 virtual days

Final Debriefing

ERP Simulation Game

Pierre-Majorique LÉGER Jacques ROBERT Gilbert BABIN

A Serious Game for Learning Enterprise Resource Planning Concepts

Robert PELLERIN Bret WAGNER

Logistics Game

LOGISTICS INTRODUCTION

Last Update: July 13, 2021