Excel Logistics Case Essay

PurposeTo introduce participants to the provide kitchen range concept and to the effects decisions along the chain have on pedigree levels and represent. Introduction In this game the retailer sells cases of beer to a consumer and differentiates cases of beer from the middleman the wholesaler sells cases of beer to the retailer and pastures cases of beer from the distributor and the distributor sells cases of beer to the wholesaler and orders beer from the factory (brewery). The factory brews the beer.The beer ply chain is shown belowPlayers of the game to each one return on a different role in the give chain. The roles atomic number 18 the Factory, Distributor, Wholesaler and Retailer. either(prenominal) berth is directly linked, and beer stick outnot skip the adjacent position. For example, the Wholesaler orders beer from the Distributor, and ships beer to the Retailer. An important setting in making decisions is the delay in the movement of beer through the supply chain. It takes three flow rates to move an order of beer between each player in the supply chain. If during period 3 the Wholesaler decides to ship 10 cases of beer to the Retailer, the beer would take periods 4 and 5 to move to the Retailer and then would be unattached for sale by the Retailer at the beginning of period 6. Similarly, orders atomic number 18 not visible to the upriver player for one period. For example, if the Wholesaler places an order in period 3, the order is received by the Distributor at the beginning of period 4. For each period of play, every participant follows the aforementioned(prenominal) cycle1. The system is up go steadyd by your instructor where fresh orders and shipments are received, shipments enroute are advanced, and inventory levels and backorder positions are calculated (these tasks are done automatically by the server broadcast. 2. The player updates the status screen and reviews up-to-the-minute position. 3. A transferral decision is m ade according to new orders and backlog, subject to inventory availability, 4. An say decision is made for more beer.There are only two lives involved in this simplified version of a logisticssupply chain inventory holding cost ($1.00/case/period) and back order costs ($2.00/case/period). Each team has the goal of minimizing the sum of these costs by balancing the cost of having inventory (inventory holding cost) with the cost of world out of inventory when a customer orders beer (back order cost). The server program keeps track of the costs incurred by each team. At the end of the game, the congeries game cost for the distribution system is the sum of the four idiosyncratic participants thorough costs (retailer cost + wholesaler cost + distributor cost + factory cost). The goal is to minimize team costs. Action The game begins with a fully-loaded pipeline of cases of beer 16 cases of inventory in each positions menstruum inventory, 4 cases in each of the production delay p ipeline, 4 cases in each of the shipping delay pipeline, each position has an sign order for 4 cases of beer.DefinitionsThe following terms are used in the status report electric current Demand This is the demand for the current period at this position. For the Retailer, this demand is determined by an external demand stream. For all other positions, this demand reflects an order placed by the downstream position in the supply chain during the previous period. Backorder This is the demand that has not been met to date at this position. When a position does not meet demand by shipping cases of beer, the backorder criterion is increased. This amount does not include the demand during the current period. Current Shipment This is the amount that is being shipped to the downstream position during the current period. After the ordering and shipping decisions have been made, the status button can be used to update the status report. The status report ordain reflect the current order and shipment decisions. Remember that afterward the instructor has updated the system, the status button should be pressed again to receive a report that reflects the execution of the decisions for the previous period. On Hand This is the current amount in inventory at the position.This is the total amount that can be shipped this period from this position. Due Next Period This is the number of units that are schedule to arrive at this position next period. Due In twain Periods This is the number of units that are scheduled to arrive in two periods. Current Order Release This is the number of units that are being ordered from the upstream position. Theupstream position will not see this order until after the system has been updated to the next period. Inventory Cost This is the cumulative inventory cost for this position. This is calculated from the actual inventory balance at the end of each simulated period. During the update process, the system first ships material to th e downstream position, updates the cumulative inventory and backorder costs based on the inventory and backorder levels, and then receives new material into the position. Backorder Cost This is the cumulative backorder cost for the position. Total Cost This is the total cumulative cost for the position.