Soda Game.pptx

The Scenario
• The factory has unlimited raw materials which makes (brews) the soda.
• Each component has unlimited storage capacity.
• There is a fixed supply lead time and order delay time between each component.
• Each component in the supply chain tries to meet the demand of the downstream
component.
• Any orders which cannot be met are recorded as backorders, and met as soon as
possible.
• No orders will be ignored, and all orders must eventually be met.
• Each component in the supply chain is charged a Rp.10.000 shortage cost per
backordered item.
• Each component is charged Rp. 5.000 inventory holding cost per inventory item that
it owns.
• Any orders from downstream component takes one week to arrive at the supplier.
• There is an additional two week transportation delay before the material being
shipped by the supplier arrives at the customer who placed the order.

Retailer Wholesaler Distributor Factory
order order order
items items items
Resource
Inventory cost
Inventory cost/item Rp. 5.000,-.
1
8
2
7
6
3
4
5
Total Invebtory cost = 8 quantities x Rp. 5.000,-/item
= Rp. 40.000,-

Backorder cost
Backorder cost Rp. 10.000,-/item
.
Total Hutang = 6 barang x Rp. 10.000,-/barang
= Rp. 60.000,-
1
8
2
7
6
3
4
5
defisit 6 items
+ 3 items
(current order)
Total Backorder cost = 9 items x Rp. 10.000,-/item
= Rp. 90.000,-

The Goal
• The team with the lowest overall costs is
the winner.
Overall cost= total inventory cost + total
backorder cost

Rules of The Game
• Customer demand is not known to any of
the players in advance.

Rules for Retailer
Customer
Demand
Retailer's
Discard
Pile
Customer
Deliveries
Container
Step 2: Order
Arrives:
Read customer
demand card; record
order amount in
"Incoming Order";
then place card in
the discard pile face
down.
Step 6: Decide how much to order:
Write your new order on an orange
post-it-note and place in your outgoing
order box. Record order amount in
"Outgoing Order" column.
Step 5: Mail last week's order:
Move order to right from your
"Outgoing Order" Box to your
supplier's incoming order box.
Step 3: Fill new
orders plus any old
backlog (if
possible).
Move chips (pallets of
soda) into container
to meet customer
demand.
Retailer
Current Inventory
Step 4: Record Your Inventory or Backlog:
Count the number of chips in your current inventory box and record in
"Current Inventory" column. If you are unable to meet all customer demand,
add current backlog to any existing backlog and record in "Backlog" column.
Step 1: Transport your soda:
Move chips (pallets of soda) in each shipping
delay box one box to the left.
Second Shipping
Delay
First Shipping
Delay
Retailer's Outgoing
Order

Rules for Wholesaler’s
Wholesaler’s
Incoming
Order
Wholesaler's
Discard
Pile
Step 2: Order
Arrives:
Read your
incoming order
card; record order
amount in
"Incoming Order"
column; then place
card in discard pile
face down.
Write your new order on a yellow post-it-note and
place in your outgoing order box. Record order
amount in "Outgoing Order" column.
supplier's incoming order
box.
Step 3: Fill new
orders plus any old
backlog (if
possible).
Move chips (pallets
of soda) into
container to meet
customer demand.
Wholesaler
Current Inventory
Count the number of chips in your current inventory box and record in "Current
Inventory" column. If you are unable to meet all customer demand, add current
backlog to any existing backlog and record in "Backlog" column.
Second Shipping
Delay
First Shipping
Delay
Wholesaler's
Outgoing Order

Rules for Distributor’s
Distributor's
Incoming
Order
Distributor's
Discard
Pile
Step 2: Order
Arrives:
Read your
incoming order
card; record order
amount in
"Incoming Order"
column; then place
face down.
Write your new order on a yellow post-it-note and
place in your outgoing order box. Record order
amount in "Outgoing Order" column.
supplier's incoming order
box.
Step 3: Fill new
orders plus any old
backlog (if
possible).
Move chips (pallets
of soda) into
container to meet
customer demand.
Distributor
Current Inventory
Second Shipping
Delay
First Shipping
Delay
Distributor's Outgoing
Order

Rules for Factory’s
Factory's
Incoming
Order
Factory's
Discard
Pile
Step 2: Order
Arrives:
Read your
incoming order
card; record order
amount in
"Incoming Order"
column; then place
face down.
Step 5: Fill Production
Request.
Read Production Request and
transfer that number of chips
into first production delay
box.
Step 3: Fill new
orders plus any old
backlog (if
possible).
Move chips (pallets
of soda) into
container to meet
customer demand.
Factory
Current Inventory
Step 1: Brew your soda:
Move chips (pallets of soda) in each
production delay box one box to the left.
Second Production
Delay
First Production
Delay
Factory's Production
Request
Production Request
Discard Pile
Raw
Mat'l
Cont
ainer
Step 6: Decide how much to
order:
Write your new production request
on a red post-it-note and place in
your factory production order box.
Record in "Outgoing Order"
column.

Initial Condition
RETAILER WHOLESALER
Used order
card
FACTORY
DISTRIBUTOR
Order card
Order
placed
Incoming
order
Incoming
order
Incoming
order
Order
placed
Order
placed
Production
Request
Raw
Materials
Shipping
Delay
Shipping
Delay
Shipping
Delay
Shipping
Delay
Shipping
Delay
Shipping
Delay
Production
Delay
Production
Delay
Customer Tube

Week 1
RETAILER WHOLESALER
Used order
card
FACTORY
DISTRIBUTOR
Order card
Order
placed
Incoming
order
Incoming
order
Incoming
order
Order
placed
Order
placed
Production
Request
Raw
Materials
Shipping
Delay
Shipping
Delay
Shipping
Delay
Shipping
Delay
Shipping
Delay
Shipping
Delay
Production
Delay
Production
Delay
4
4
4
4
4
Customer Tube
4

Result of Week 1
W I B O
1 12 0 4
2
3
4
5
W I B O
1 12 0 2
2
3
4
5
W I B O
1 12 0 3
2
3
4
5
Retailer
W I B O
1 12 0 3
2
3
4
5
Factory
Distributor
Wholesaler

Week 2
RETAILER WHOLESALER
Used order
card
FACTORY
DISTRIBUTOR
Order card
Order
placed
Incoming
order
Incoming
order
Incoming
order
Order
placed
Order
placed
Production
Request
Raw
Materials
Shipping
Delay
Shipping
Delay
Shipping
Delay
Shipping
Delay
Shipping
Delay
Shipping
Delay
Production
Delay
Production
Delay
4
4
4
8
4
Customer Tube
8
4
12

Result of Week 2
W I B O
1 12 0 4
2 8 0 8
3
4
5
W I B O
1 12 0 2
2 12 0 2
3
4
5
W I B O
1 12 0 3
2 12 0 3
3
4
5
Retailer
W I B O
1 12 0 3
2 12 0 3
3
4
5
Factory
Distributor
Wholesaler

Week 3
RETAILER WHOLESALER
Used order
card
FACTORY
DISTRIBUTOR
Order card
Order
placed
Incoming
order
Incoming
order
Incoming
order
Order
placed
Order
placed
Production
Request
Raw
Materials
Shipping
Delay
Shipping
Delay
Shipping
Delay
Shipping
Delay
Shipping
Delay
Shipping
Delay
Production
Delay
Production
Delay
3
2
4
8
3
Customer Tube
8
12
20

Result of Week 3
W I B O
1 12 0 4
2 8 0 8
3 4 0 8
4
5
W I B O
1 12 0 2
2 12 0 2
3 16 0 2
4
5
W I B O
1 12 0 3
2 12 0 3
3 16 0 3
4
5
Retailer
W I B O
1 12 0 3
2 12 0 3
3 16 0 3
4
5
Factory
Distributor
Wholesaler

Week 4
RETAILER WHOLESALER
Used order
card
FACTORY
DISTRIBUTOR
Order card
Order
placed
Incoming
order
Incoming
order
Incoming
order
Order
placed
Order
placed
Production
Request
Raw
Materials
Shipping
Delay
Shipping
Delay
Shipping
Delay
Shipping
Delay
Shipping
Delay
Shipping
Delay
Production
Delay
Production
Delay
3
2
8
8
3
Customer Tube
8
20
28

Result of Week 4
W I B O
1 12 0 4
2 8 0 8
3 4 0 8
4 0 0 8
5
W I B O
1 12 0 2
2 12 0 2
3 16 0 2
4 12 0 2
5
W I B O
1 12 0 3
2 12 0 3
3 16 0 3
4 17 0 3
5
Retailer
W I B O
1 12 0 3
2 12 0 3
3 16 0 3
4 18 0 3
5
Factory
Distributor
Wholesaler

Week 5
RETAILER WHOLESALER
Used order
card
FACTORY
DISTRIBUTOR
Order card
Order
placed
Incoming
order
Incoming
order
Incoming
order
Order
placed
Order
placed
Production
Request
Raw
Materials
Shipping
Delay
Shipping
Delay
Shipping
Delay
Shipping
Delay
Shipping
Delay
Shipping
Delay
Production
Delay
Production
Delay
3
2
8
8
3
Customer Tube
4
28
32

Result of Week 5
W I B O
1 12 0 4
2 8 0 8
3 4 0 8
4 0 0 8
5 0 4 8
W I B O
1 12 0 2
2 12 0 2
3 16 0 2
4 6 0 2
5 6 0 2
W I B O
1 12 0 3
2 12 0 3
3 16 0 3
4 13 0 3
5 13 0 3
Retailer
W I B O
1 12 0 3
2 12 0 3
3 16 0 3
4 15 0 3
5 19 0 3
Factory
Distributor
Wholesaler

Week 6
RETAILER WHOLESALER
Used order
card
FACTORY
DISTRIBUTOR
Order card
Order
placed
Incoming
order
Incoming
order
Incoming
order
Order
placed
Order
placed
Production
Request
Raw
Materials
Shipping
Delay
Shipping
Delay
Shipping
Delay
Shipping
Delay
Shipping
Delay
Shipping
Delay
Production
Delay
Production
Delay
3
2
8
8
3
Customer Tube
8
32
40

Result of Week 6
W I B O
1 12 0 4
2 8 0 8
3 4 0 8
4 0 0 8
5 0 4 8
6 0 4 8
W I B O
1 12 0 2
2 12 0 2
3 16 0 2
4 6 0 2
5 6 0 2
6 0 0 2
W I B O
1 12 0 3
2 12 0 3
3 16 0 3
4 13 0 3
5 13 0 3
6 13 0 3
Retailer
W I B O
1 12 0 3
2 12 0 3
3 16 0 3
4 15 0 3
5 15 0 3
6 20 0 3
Factory
Distributor
Wholesaler

Remember
• Inventory: the number of cases of soda that your
position have.
• Backorder: the number of cases of soda that you
not fulfilled at current week.
• Example:
– Let your inventory at certain week are 4 cases, and let your
downstream demand are 12 cases, then you have backorder
are 8 cases, because you only fulfilled 4 cases at current week.
– At the next week, let your downstream demand are 12 cases,
then you must have 20 cases to fulfilled this demand, because
you have 8 backorder at last week and current demand are 12
cases (8+12=20).
– Suppose you have only 4 cases at current week, then you only
fulfilled 4 cases at this week, and your current backorder are 16
cases.
• Order: your order at current week.

Groups
• Group 1: Four at retailer
• Group 2: Three at wholesaler
• Group 3: Three at Distributor
• Group 4: Three at Factory
• Play the game in 20 week.

Role of Person at Retailer
RETAILER
Used order
card
Shipping
Delay
Order card
Order
placed
Incoming
order
Shipping
Delay
My roles are to
read order card and
to move order card
to used order card
My roles are to
bring incoming
order to wholesaler,
to put and to move
order placed to
incoming order
My role is to move
cases at the
shipping delay
My role is to read
order and to write
the data
Made Decision

Role of Person at Wholesaler
WHOLESALER Shipping
Delay
Order
placed
Incoming
order
Shipping
Delay
My roles are to
bring incoming
order to distributor,
to put and to move
order placed to
incoming order
My role is to move
cases at the
shipping delay
My role is to read
incoming order and
to write the data
Made Decision

Role of Person at Distributor
WHOLESALER Shipping
Delay
Order
placed
Incoming
order
Shipping
Delay
My role are to bring
incoming order to
factory, to put and
to move order
placed to incoming
order
My role is to move
cases at the
shipping delay
My role are to read
incoming order and
to write the data
Made Decision

Role of Person at Factory
WHOLESALER Production
Delay
Order
placed
Incoming
order
Production
Delay
My role are to bring
production request
to raw material, to
put and to move
order placed to
incoming order
My role is to move
cases at the
production delay
My role are to read
incoming order and
to write the data
Made Decision

Soda Game.pptx

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Soda Game.pptx