Company ABC performance in every round. In the process of supply chain, there’s a delay time of total three weeks. Example, it takes one week for manufacturer to deliver the raw material (procurement manager), another week for the brewing process (work in progress), and one week to move finished goods to the retailers (inventory).If there is enough quantity in inventory, the relevant number of units are shipped out to the customers. Otherwise, the backlog of orders will keeps pile up and needs to satiated in the next weeks.Week 1 – At beginning of week, we decide to produce 15 units as the demand customer is 10 units. We make extra 5 units as in case demand will increase for the next. The backlog is null.
First week already meet market demand as we have 10 units’ product that need to shipped to meet the customer order. There have 10 units of product in the warehouse, 10 units in-transit and 10 units in work-in-progress.Week 2 – Our product not meeting the market demand for second week. But customers already asked for 15 units, but due to the limited inventory there are 5 units of unfilled order, we shipped 10 units for second week. We need to increase our inventory. In week 2, there already have 10 units of inventory because product in work-in-progress in week 1 is completely done. So we increase our production to 25 units as demand are getting higher. 25 units is enough to cover the backlog and customer order for week 3.
Week 3 – In week 3 the company also cannot meet the market demand, we decide to reduce the product to 15 units because we still have 25 units in the process of in-transits. New customer order is still maintaining at 15 units, but the total demand has increased to 20 units. This is due to the 15 units of the new customer order in this week and needs to add with the 5 units of the new customer order in this week and needs to add with the 5 units backlogs in last week. With limited inventory we shipped 10 units.
Unfilled order as much as 10 units. Our inventory needs to increase. Week 4 – Now the total demand from customer increase to 25 units, where new customer order are the same 15 units as week 3, the backlogs are increase to 10 units affected the total demand. But due to the limited inventory, we shipped 15 units. Unfilled order was 10 units same as week 3. We need to increase our inventory. But we decide to maintain our production because the number of new customer order are in same quantity as week 3.Week 5 – We have met the customer demand in week 5.
The new customer orders are 15 units which are same as the last two weeks while the backlog is maintained with 10 units. Therefore, the total demand for Company ABC is 25 units. Now the total demand is same as the inventory so we shipped the 25 units of inventory to meet the total demand. We decide to produce 15 units of product because in-transit and work in progress still have 15 units. Week 6 – we have reach equilibrium in week 5. Company ABC meet the market demand again as the total demand is 15 units. The inventory can fulfil the market demand with 15 units of product.
There is bull-whip effect, where the fluctuations start small and then start swinging wildly. The big revelation here is that the weekly order rate changes only once in the game (i.e.
in Week 2, from 10 units/week to 15 units/week). Starts week 3 to week 6 we produce same quantity units. The performance of Company ABC from week 1 to week 6:Week 1 – Meet the market demand, inventory to the market demand to reach the equilibrium.
Week 2 – Fail to meet the market demand, inventory need to increase.Week 3 – Fail to meet the market demand, inventory need to increase.Week 4 – Fail to meet the market demand, inventory need to increase.Week 5 – Meet the market demand, equilibrium reachWeek 6 – Meet the market demand 2. Your role and contribution in supply chain decision making processes of Company ABC. PRODUCTION MANAGERIn this company, I am a production manager.
The production manager is not to save money, but to spend money wisely in production of product. My job is like working as a mini plant manager in the Company ABC, my responsibilities include to decide the processes by which goods and services are produced, the quality of goods or services, the quantity of goods or services based on the capacity of operations, the stock of materials (inventory) needed to produce goods or services and lastly to decide the management of human resources in Company ABC. As a production manager I need to control the production to meet the market demand to reach the equilibrium. Besides, review the processing schedule or production order to decide on inventory requirements, work procedures, and consider the budget constraints. Next, production manager consider the total demand and new customer order must parallel with the product in shipped and unfilled order.I also need to think wisely how many productions need to produce based on the total demand and what unit have in-transit and work-in-progress so that there is no waste in the manufacturing.
Production manager play an important role for ensure that production stays on schedule and within budget. I have to analyze the production data and check-up quality and quantity of goods and responsible for carrying out quality control programs to make sure the finished product meets a specific level of quality.Lastly, production manager need to detect the production problem by developing or implementing production tracking or quality control systems, analyse production, quality control, maintenance, or other operating reports. I have to review operations and confer with technical or administrative staff to resolve production or processing problems. 3. How a decision can affect every supply chain stage and overall supply chain performance.
Supply chain management which is the management of the flow of goods and services, include the movement and storage of raw materials, production, in-transit, work-in-progress and inventory from the point of origin to the point of consumption. Thus, the decision of each department can affect to every process or department in the supply chain. Based on simulation game supply chain, we can understand why we decide on the number of products to produce every week based on the performance and influence inventory to meet market demand. The company can produce the product with the quantity required at the appropriate time. It can help the company avoid too many stock (overproduce) in the inventories, higher cost of inventory and prevent waste. However, the company also needs to prevent for the unfilled order. Therefore, production manager must produce the product parallel with customer demand and production manager must make sure the production and inventory in the warehouse can meet the customer order.
The information about customer demand and customer need is important because it affect every supply chain stage and overall supply chain performance. In addition, the decisions for the shipment time, quantity of production, the lead time of the product and the time of product become the inventory in a warehouse also affect each of a supply chain stage and overall supply chain performance. 4.
The importance of supply chain coordination and how it can be achieved. Supply chain coordination refers to the coordination of information, raw materials, and finance between Company ABC and supply chain. Supply chain coordination are main role to align all stages of the supply chain that take actions together to increase the total profit of supply chain and achieve the supply chain surplus. This is why communication and coordination between the members in supply chain enhances its effectiveness that give benefit to overall supply chain. For example, as a production manager in this Company ABC, I must make sure that quantity of production every week must parallel with the total demand and inventory. Thus I need the coordination with the departments like inventory management, procurement manager, sales and operation planning manager and transport & logistics manager. In the simulation game, I gain information about the customer order, the customer demand, backlog, and quantity unfilled order from the sales & operation planning manager. The information of purchase the raw material and quantity of produce the product also important in production manager that I can get from procurement manager.
Therefore, I will work together with procurement manager and inventory manager. A breakdown in communication between these two departments can cause production slowdowns. Besides that, I will coordinate with transport & logistic manager due to the products need delivery become inventory in the warehouse and the products also require transportation to ship to the customer on time. In general, the importance of supply chain coordination is can improve the flow of raw material, product and inventory. The information of supply chain must share with all departments because the demand and forecasts sales were important of supply chain coordination. Supply chain coordination can be achieved if the Company ABC uses the technology information system. This is because the information of customer demand, customer orders and quantity of inventory can be shared with their supplier through the technology information system. The technology information system also can help Company ABC collect the information about the history of customer order and history of customer demand.
The data which collect by using technology information system help company predict the sales. Technology information system also can improve the supply chain coordination. This is because each department may share their information with other departments.
5. Challenges in balancing supply and demand. The challenges in balancing supply and demands was complex and difficult when playing this simulation game. It is the challenge of how to order and how to control ongoing activities. Thus, we must understand the theory or rule of simulation game before starting the game. First stage, we need to know there has a lead time for 3 weeks in this game. This means to produces a product and the product become an inventory in the warehouse for the shipped to the customers requires 3 weeks. It takes 1 week for vendors to deliver the raw material (procurement), another week for the brewing process (work in progress), and another one to move the finished goods to the retailers (inventory).
Therefore, we decided produces 15 units in week 1 which more than the customer orders because of it only available become inventory after 3 weeks. Although there has the backlog in 5 units and unfilled orders are 10 units in week 3, we still decided produces 15 units because the product in week 1 still not available but it will become available in the next week. The Company ABC cannot meet the market demand from week 2 to week 4 due to the lead time which the product can only be available after three weeks. Our company also decided to increase the production to 25 units because customer order in week to also increased.
From week 3 to week 6, we maintain produced 15 units because the customer order also maintains 15 units. On the other hand, there has the backlog and unfilled orders in week 3 to week 5 but the produce 25 units in week 2 can fulfil all the order when the product become inventory in week 5. As conclusion, we want to balance the supply and demand is a challenge while to meet all the customers’ demands. The Company ABC underproduction or overproduction will fail to meet the customer demand. 6. Lessons learnt from the game. Lesson that I learn about the supply chain in this simulation game is important to a company. This is because, the supply chain will influence a company either can or cannot produce the products to meet the customer demand.
Thus, the supply chain can help a company to increase its competitive advantages. The supply chain coordinates between the departments in a company are also important. This is because the supply chain coordination will affect every supply chain stage and overall supply chain performance. For example, production manager need to know how many to produce based on customer demand. And the customer demand information will get from sales & operation planning manager. Besides, production manager also need information from inventory manager, how many inventories are in the ship, so that our company would not overproduces and become waste if too many were produce. So, sharing the information was important between departments in a company.
Besides that, the collected data and predict the customer demand in the market is a significant lesson learned from this game. For example, we can use the history of customer demands or customer orders to predict the demand for next week. It can help the production of how many products to produce because the lead time from raw materials to shipping the inventory to the customers need 3 weeks. Therefore, the predict customer demand is very important. The last of lesson from the simulation game is accurate information of customer demand, customer order, backlog, unfilled orders, production, and inventory is important. This is because the accurate information can help the company do better in decision making.
For example, the accurate information also helps the Company ABC know how many quantity products need to produce and how many products need to ship to the customer. In addition, the accurate information can help the company avoid underproduction and overproduction. It can prevent the company failed to meet the customer demand in the market and the company become successful.