Transcript Document 7914984

Case Study I
EGN 5621 Enterprise Systems Collaboration
Summer B, 2013
Operate a Distribution
Company
(Operations & Trial Run)
EGN 5621 Enterprise Systems Collaboration
Summer B, 2013
Teams
Each time should
have 3-6 participants.
 Each team operates a
bottle distribution
company.
 Participants make
business decisions to
ensure the
profitability of their
operation, using
standard reports.

The (German) Market
• 6 products (boxes of 12x1L and 24x500mL)
• 3 areas with distinct marketing accounts
• One distribution channel: 18
• Market size of about € 6,000 per company per step
North
45 retailers
West
40 retailers
South
38 retailers
The 6 Products
Product Code
Product Description
Units in box
Cost of boxes
$$-B01
1L ClearPure
12 bottles
11.99
$$-B02
1L Spritz
12 bottles
14.99
$$-B03
1L Lemon Spritz
12 bottles
16.99
$$-B04
500mL ClearPure
24 bottles
16.99
$$-B05
500mL Spritz
24 bottles
19.99
$$-B06
500mL Lemon Spritz
24 bottles
22.99
The Game Layout Design
25 min
20
steps
25 min
20
steps
25 min
20
steps
Rules of the game
 Each
round will be of 20 steps (a bit more
than 1 min per step)
 End-of-round inventory is carried over to
the next round
 You can sell a product only if you have it
in stock
 You compete against the other teams and
importers
 Your objective is to maximize profit
ABC of the Enterprise system
 An
enterprise system is built around an
integrated database
 A system such as SAP contains tens of
thousands of data tables
 When a user creates, changes or views data in
the system, he or she performs a transaction
 Data changed or created by one user can be
exploited by all other users in the same team
(ex. reporting, tracking, execution of orders,
etc.)
 All transactions are traceable, transactions
with financial impacts can be reversed, never
erased
User interface
 Users
interact with the enterprise system
through transactions.
 A large number of pre-programmed
transactions exist in SAP
 Each transaction has a transaction code –
one can call a transaction if one knows the
transaction code
 The SAP menu allows to browse and find
the desired transaction
 One can create a user menu or a list of
favorites with the commonly used
transactions
SAP Menu & Navigation
Extras / Settings / Display Technical Names
Reports and queries
 Reports
and queries are transactions that
allow users to view existing data
 A typical query is performed as follows:
In the first page of the transaction, you must
enter the selection criteria for the query (ex.
Company code, product code, etc.)
Then, click on
to execute the query
A table containing the requested data will
appear
The display and layout can sometimes be
modified
Entering new data
Some transactions are designed to change
or create new data (change forecast,
release purchasing orders, change sale
price, etc.)
 The interface varies according to data
required by the system
 The system will not allow you to save
information if all the compulsory fields
have not been filled
 You must save/release/confirm before
exiting the transaction

Other useful buttons
Use the navigation buttons to go back or
get out of a transaction
 You can open up to 6 sessions. Click on
to open a new session
 Delete
, search
, select all
,
view
, enter
.

Participant’s job aid
SAP ERPsim Server, and Client for
Distribution
Server: merida
Client: 205
Application Server:
merida.cob.csuchico.edu
System ID: MER
System #: 38
SAP ERPsim Server, and Client for
Distribution
Getting Started:

Set up teams:
Companies : A to D
• 3- 6 persons in a team
•

Userid: $#
◦ Where
◦
$ = Assigned team letter,
◦
# = User 1 to User 6

Password: ERPSIM
Login information
Client will be provided
by the instructor
Login: $#
Where
$ = Team,
# = User 1 to
User 6
Password: ERPSIM
You will have to change your
password the first time you
enter
The Distribution Game:
Round 1 (20 steps)
Now start the
simulator for 20 steps
Distribution Game: Round 1
25 min
20 steps
Check initial inventory
Check Financial Statement
Check Financial Statement
Check Initial Financial Statement
The Distribution Game:
Quarter 1 (20 virtual steps)
Initial
Financial Status:
◦11000
◦70000
◦113300
◦792000
Fix Assets
Common Stock
Bank Cash Account
Finished Goods
250,000
(500,000)
146,060
103,940
Cost, inventory & initial pricing
Material
$$-B01
$$-B02
$$-B03
$$-B04
$$-B05
$$-B06
1L ClearPure
1L Spritz
1L Lemon
Spritz
500mL
ClearPure
500mL Spritz
500mL Lemon
Spritz
Size
1L
1L
1L
500mL
500mL
500mL
Number of bottles
in package
12
12
12
24
24
24
Cost
€11.99
€14.99
€16.99
€16.99
€19.99
€22.99
Initial price
€14.99
€17.99
€19.99
€19.99
€22.99
€25.99
Initial stock
1,000
1,000
1,000
1,000
1,000
1,000
Name
The Distribution Case: Round 1
(20 steps)


You need to maintain the price of your 6
products and invest in marketing.
Need to know the following in order to make
decisions:
◦
◦
◦
◦
Maintain price list
See available stock
Monitor sales orders
Monitor competitors
Participant’s job aid & Menu
Maintain Prices for DC 18
Marketing expenses
On marketing
Enter your daily marketing budget for
each product and for each region
 The impact of marketing in one region
depends on your share of all marketing
expenses in this region
 Marketing induces customers to find your
product “more desirable”
 The daily marketing budget can be
changed at any time

Stock in material overview
Check sales summary report
Check market report
Check sales order report
Distribution Game: Round 2
25 min
20 steps
It’s time to replenish !

You need to replenish. Replenishment will
allow you to purchase the same quantity
that you have sold.
Material
$$-B01
Name 1L ClearPure
Initial forecast
1,000
$$-B02
$$-B03
$$-B04
$$-B05
$$-B06
1L Spritz
1L Lemon Spritz
500mL
ClearPure
500mL Spritz
500mL Lemon
Spritz
1,000
1,000
1,000
1,000
1,000
Replenishment
Up to 3 steps Up to 3 steps Up to 3 steps Up to 3 steps Up to 3 steps Up to 3 steps
lead time
Participant’s job aid & Menu
Create Planned Ind. Requirements
Create Planned Ind. Requirements
Execute MRP
After the MRP run
Convert purchase requisitions into
purchase orders
Track purchase orders
The Distribution Game:
Round 2 (20 steps)
Now start the
simulator for 20 steps
Distribution Game: Round 3
25 min
20 steps
It’s time to replenish !


You need to replenish. Change your forecast
to adapt the replenishment levels to your
needs
What do you need to know in order to make
that decision ?
Material
$$-B01
Name 1L ClearPure
$$-B02
$$-B03
$$-B04
$$-B05
$$-B06
1L Spritz
1L Lemon
Spritz
500mL
ClearPure
500mL Spritz
500mL Lemon
Spritz
Initial forecast
1,000
1,000
1,000
1,000
1,000
1,000
Replenishment
lead time
3 steps
3 steps
3 steps
3 steps
3 steps
3 steps
Participant’s job aid & Menu
Forecasting
The Distribution Game:
Round 3 (20 steps)
Now start the
simulator for the last
20 steps
Cash management
 You
 You
started with 146,060 in cash
can reimburse your bank loan at
anytime and save on interest payment
 You can use all your cash to stock products,
but …
 If you run out of cash, your bank loan will
be extended but you credit rating will go
down and your interest payments will go up
 Holding to much stock reduce your ability to
response to customers’ preferences
51
Premium on credit ratings

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Cre dit ra tings
AAA
AA+
AAA
BBB+
BBB
BBBBB+
BB
CC
Risk Premium
0.00%
10.00%
Check financial data
Financial
statements
Product
costing
53
Analysis of Your Distribution
Operation