Transcript Operate a Logistics Company EGN 5621 Enterprise Systems Collaboration

Operate a Logistics Company
EGN 5621
Enterprise Systems Collaboration
(Professional MSEM )
Fall, 2011
Objectives:
To understand the practice side of running
a logistics operation.
 To learn how the ERP system is used to
support business strategies
 To develop decision making skills using an
enterprise software
 To appreciate the tangible benefits of
enterprise integration firsthand
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The Logistics Game
In groups of 5 participants, each team has
to operate a company selling dairy
products.
 Using standard reports, participants must
make business decisions in order to
optimize the profit of their operations.
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Six Dairy Products
Products Details
Logistics Operation Design
Your company owns a main warehouse which
receives and stores products you have purchased
from a dairy cooperative.
The Market’s Settnigs
Each region has unique preferences related
to the products it wishes to purchase from
your company. Preferences change every
game.
One Price List in Distribution
Channel 16
You will need to set-up prices for your
products. The price for each product will be
applied to all 3 regions.
Transportation Costs
You will have to manage transportation costs carefully as they
negatively affect your company’s profit.
Cost :
1000 €
per PO
Cost : 100 € per
regional tranfer
Logistics Strategy
You must determine a logistics strategy in order
to make your products available for sales through
your regional storage location.
OR
Push Logistics Strategy
A Push strategy specified the quantity to be
delivered of each product to each area and
the number of days between deliveries.
Push Logistics Strategy
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The simulator will deliver the specified quantity
to the three regional storage locations, as
defined in the delivery interval.
If the stock in the main warehouse is more than
the required quantity, excess material remains at
the main warehouse.
If the stock in the main warehouse is less than
the specified for transfer to the three regional
storage locations, the available stock will be
divided proportionally according to the specified
quantity for each region, such that more stock
will be sent to the region with a higher specified
quantity
The Pull Logistics Strategy
A Pull strategy specified the target
quantities for each product in each area and
the number of days between deliveries.
Pull
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The simulator will deliver the balance between the
target quantity and current stock quantity at each
local storage every time according to your selected
scheduling days.
If there is enough stock in the local storage, then
no transfers is generated for the local storage.
If the main warehouse does not have enough
stock to meet a need, available stock will be
divided proportionally according to the generated
stock transfer for each regional storage location,
such that ones with a larger gap between current
and target stock will receive more transfer.
Rules of the Game
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Each round will last 10 days
(a bit more than one minute per day)
No initial inventory for each product.
End-of-round inventory is carried over to
the next round.
You may sell a product only if the stock is
available at each regional storage
location.
You are competing against other teams.
Your objective is to maximize profits.
Rules of the Game
There are warehousing costs whenever
the company’s total inventory (inventory
in both the main warehouse and three
local storages) exceeds 4,000 boxes. The
cost is 100 € per day for each additional
100 boxes exceeding 4,000.
 Market size: About € 6,000 per company
per day.
 Lead time from supplier: 1 – 3 days
 Lead time to local locations: 1 – 3 days
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Activities in Each Company
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Create planned independent requirement
for each finished product (MD61)
Run MRP (MD01)
Covert purchase requisitions to purchase
orders (ME59N)
Stock transfer (ZMb1B)
Maintain prices for each products (VK32)
Check reports
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Purchase order report (ZME2N)
Inventory report (ZMB52)
Summary sales report (ZVC2)
Sales report (ZVA05)
Financial statement (F.01)
Activities in Each Company
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Must make sure that the regional warehouses
have the required stock needed to meet
demand while reducing the delivery, purchase
order numbers, warehouse cost.
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In order to excel, each company have a good
strategy, all departments must coordinate their
efforts, correctly and quickly respond to market
requirement/changes, and use the ERP system
effectively.
Game layout
15 min
10 days
15 min
10 days
Round
1
Round
…
15 min
10 days
Round
6
Job Aids (1/2)
Job Aids (2/2)
Login information
Client: 530
Login:
logistics_$#
Where $ is your team letter
And # is your number
Password: ERPSIM
You will have to change your
password the first time you enter
SAP Menu & Navigation
Top Menu: Extras / Settings / Display technical names
Logistics Game:
Round 1
Participant’s job aid & Menu
Forecasting
First Screen
Second
Screen
Execute MRP
Convert purchase requisitions into
purchase orders
Track purchase orders
Logistics Transfer Planning
Stock in material overview
Maintain Prices for DC 16
16
Check sales summary report
Check financial statement
The Logistics Game:
Round 1 (10 days)
We start the simulator
for 10 days
Debriefing:
Round 1
Questions?
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What are your first impressions?
How was the communication during Round
1?
What information was exchanged among
teammates?
Who made decisions in your team?
Were you satisfied with the organization in
your company?
Logistics Game:
Round 2
The Logistics Game:
Round 2 (10 days)
We start the simulator
for 10 days
Debriefing:
Round 2
Questions?
How was the communication during Round
2?
 What information was exchanged among
teammates?
 Who made the decisions in your team?
 Were you satisfied with the organization in
your company?
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Logistics Game:
Round 3
The Logistics Game:
Round 3 (10 days)
We start the simulator
for the last 10 days
Debriefing:
Round 3 - 6
Questions?
How was the communication during Round
3 - 6?
 What information was exchanged among
teammates?
 Who made the decisions in your team?
 Were you satisfied with the organisation in
your company?
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Questions?
Did your role and relevance within your
team changed from Round 3 to Round 6?
 How were the decisions made?
 Based on your experience, how well did
your operation make use of the entreprise
system?
 How could an enterprise system transform
company’s organization and operation?
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