Part 1: Inventory Simulation Game

Assuming that you knew the actual demands in advance, improve your ordering schedule.

Hint: The optimal ordering policy has zero shortage costs in every period, AND an ending inventory of zero in the last time period. And such a policy has the maximum annual profit of more than $5200. Improve your initial solution such that you have an annual profit as close to this number as possible.

In 250 words, explain the ordering policy that you could improve to. What are the solution properties that you can observe?

(Also, email your Excel file to me separately before the deadline.)

Part 2: Beer Distribution Game: (The instructions to access your data in the simulations are provided as another attachment to the email.)

1.Discuss the decisions you have made in each of these games. Do not blame other people in the game. Analyze your own performance in the context of each game and

critically evaluate your own decisions. What were good decisions vs. bad decisions? If you were to play the game again, what changes would you have made?

• For all games and roles you played, explain your observations about the degree of fluctuation in the order quantities and inventory/backorder levels. What do you think contributes to these fluctuations? What are the implications of this effect for each role you played in the game?
• Compare the effects of your decisions in each different role to the other players in the game.
• Explain the changes in your personal strategy for making ordering decisions in each game and role you played.
• Explain the impacts of information sharing and lead time variation on your performance.
• Discuss your group strategy, level of collaboration and associated impacts on your total costs.

You are being graded on critically looking at your own performance by analyzing graphs and data. You should refer to the plots and data in detail when explaining your decisions.