Running Header: SCM GLOBE SIMULATION: CINCINNATI SEASONINGS RESULTS SCM Globe Simulation: Cincinnati Seasonings Results ASCM 629 Dr. James A. Bryant University of Maryland University College Over the past ten weeks the SCM Globe Simulator has been a great resource to aid in educating me on the numerous details associated to managing and running a successful supply chain. In conjunction to the text contained in Bowersox, Closs, Cooper and Bowersox (2013), I was able to better understand the many facets of supply chain management and successfully expand supply chain operations, decrease inventory costs, reduce transportation costs, expand the supply chain to support company growth, and ultimately establish company growth by more than quadrupling the Cincinnati Seasonings model. The final results for week ten that will be discussed in this paper provide a summary regarding the culmination of knowledge and understanding of the SCM Globe simulator gained through each week’s assignments by tinkering, adjusting, and expanding the Cincinnati Seasonings model. The SCM Globe assignments each week provided a sense of real world supply chain management of the Spicy Cube product minus certain aspects of supply chain management not being included in this simulation. For instance, aspects such as the purchasing of raw materials for the factory, labor costs (outside of transportation), and the actual waves of supply and demand associated to consumer consumption is lacking but SCM Globe remained a great simulator and resource for students to utilize. My first impression of SCM Globe was that it would be a herculean task to comprehend and I questioned how anyone could learn the many steps needed to run the simulator successfully. Luckily the gentlemen at SCM Globe provided a great tutorial that assisted with answering the countless questions posed while Prof. Bryant provided fun and pertinent weekly assignments that allowed for the progressive learning of supply chain management and the running of the simulator. Listed below are the weekly tasks assigned in SCM Globe: Learning SCM Globe 1 week at a time, Weekly Goals in SCM Globe: Week 1: Learn the program, Summarize Initial Thoughts Week 2: Begin Cincinnati Seasonings Case, Summarize Thoughts Week 3: Expand Supply Chain Operations Week 4: Decrease Inventory Costs Week 5: Reduce Transportation Costs Week 6: Review Modeling Accomplishments Week 8: Summarize Thoughts Thus Far Week 9: Expand Supply Chain to Support Company Growth Week 10: Personal Goal- Establish Company Growth by Quadrupling Organization From stock-outs to running out of storage space to shipments being overloaded, the Cincinnati Seasonings Company and its popular Spicy Cube product has expanded from three stores supplied by one DC in week one to twenty stores supplied by six DC's spread across two states in week ten. In order to complete this major expansion successfully by week ten, intermodal trans.

1. Running Header: SCM GLOBE SIMULATION: CINCINNATI
SEASONINGS RESULTS
SCM Globe Simulation:
Cincinnati Seasonings Results
ASCM 629
Dr. James A. Bryant
University of Maryland University College
Over the past ten weeks the SCM Globe Simulator has been a
great resource to aid in educating me on the numerous details
associated to managing and running a successful supply chain.
In conjunction to the text contained in Bowersox, Closs, Cooper
and Bowersox (2013), I was able to better understand the many
facets of supply chain management and successfully expand
supply chain operations, decrease inventory costs, reduce
transportation costs, expand the supply chain to support
company growth, and ultimately establish company growth by
more than quadrupling the Cincinnati Seasonings model. The
final results for week ten that will be discussed in this paper
provide a summary regarding the culmination of knowledge and
understanding of the SCM Globe simulator gained through each
week’s assignments by tinkering, adjusting, and expanding the
Cincinnati Seasonings model.
The SCM Globe assignments each week provided a sense of real
world supply chain management of the Spicy Cube product
minus certain aspects of supply chain management not being
included in this simulation. For instance, aspects such as the

2. purchasing of raw materials for the factory, labor costs (outside
of transportation), and the actual waves of supply and demand
associated to consumer consumption is lacking but SCM Globe
remained a great simulator and resource for students to utilize.
My first impression of SCM Globe was that it would be a
herculean task to comprehend and I questioned how anyone
could learn the many steps needed to run the simulator
successfully. Luckily the gentlemen at SCM Globe provided a
great tutorial that assisted with answering the countless
questions posed while Prof. Bryant provided fun and pertinent
weekly assignments that allowed for the progressive learning of
supply chain management and the running of the simulator.
Listed below are the weekly tasks assigned in SCM Globe:
Learning SCM Globe 1 week at a time, Weekly Goals in SCM
Globe:
Week 1: Learn the program, Summarize Initial Thoughts
Week 2: Begin Cincinnati Seasonings Case, Summarize
Thoughts
Week 3: Expand Supply Chain Operations
Week 4: Decrease Inventory Costs

3. Week 5: Reduce Transportation Costs
Week 6: Review Modeling Accomplishments
Week 8: Summarize Thoughts Thus Far
Week 9: Expand Supply Chain to Support Company Growth
Week 10: Personal Goal- Establish Company Growth by
Quadrupling Organization
From stock-outs to running out of storage space to shipments
being overloaded, the Cincinnati Seasonings Company and its
popular Spicy Cube product has expanded from three stores
supplied by one DC in week one to twenty stores supplied by
six DC's spread across two states in week ten. In order to
complete this major expansion successfully by week ten,
intermodal transportation was used through combining rail and
truck adjacent to decreasing inventory costs whenever possible.
Week four's SCM Globe assignment initiated the continued goal
of decreasing inventory costs that carried throughout the
remaining weekly assignments and is summarizes in figure 1
below. This initial reduction in inventory over a 30 day period
provided nearly a 59% savings by eliminating 5,497 Spicy Cube
products that did not need to be held in inventory.

4. Figure 1: Inventory/Operating Costs
Week 4 Goal: Decrease Inventory Costs
After 30 Days:
On-Hand
Facility
Before Reduction
After Reduction
Seasonings Factory
1600
1226
Seasonings DC
3605
1470
Louisville Store
2325
161
Indianapolis Store
315
255
Ft. Wayne Store
265
233
Columbus Store
855
231
Lexington Store
360
252
Total Inventory:

5. 9325
3828
Total Value:
$9,325,000.00
$3,828,000.00
Total Reduction:
$5,497,000.00
Decreasing inventory costs in week four led to reducing
transportation costs in week five. This task was accomplished
by combining rail and truck modes of transportation in order to
“take advantage of the inherent economies of each and provide
an integrated service at lower total cost” (Bowersox et al.,
2013). The reduced cost associated to implementing intermodal
transportation was evident in week five when tasked with
reducing transportation costs over a 30 day period and is
expressed in figure 2 below. In order to take advantage of
transportation economies to reduce costs, I utilized both the
quantity principle and tapering principle.
The quantity principle was implemented by maximizing the
items shipped to either the largest value possible or nearly the
largest value possible to save on transportation costs (Bowersox
et al., 2013). This was accomplished by shipping the maximum
amount possible by rail to each of the break-bulk warehouses
for distribution to the surrounding stores. The quantity
principle was carried out again when shipping to each store by
maximizing the amount shipped by small truck to satisfy
demand and save on transportation costs. Then the tapering
principle was utilizing when shipping the largest of the
shipments the furthermost distance possible to the Cincinnati
Seasonings break-bulk warehouses by rail (Bowersox et al.,
2013).
Figure 2: Transportation Costs

6. Week 5 Goal: Reduce Transportation Costs
Data collected after 30 Days simulation:
Transportation Cost
Vehicle
Before Reduction
Vehicle
After Reduction
Factory Truck 1
$7,074.00
DC Train 1
$1,080.00
Factory Truck 2
$5,022.00
DC Train 2
$784.00
Factory Truck 3
$3,037.50
Factory Truck 3
$3,118.50
Truck 1- Louisville/Lexington
$8,100.00
Truck 3 – Indianapolis
$4,995.00
Truck 2 - Louisville/Lexington
$13,932.00
Truck 6 – Columbus
$9,495.00

7. Truck 3 - Indianapolis
$4,995.00
Train 1 – Louisville
$1,290.00
Truck 4 – Ft. Wayne/Indianapolis
$5,805.00
Train 2 – Lexington
$1,136.00
Truck 5 - Ft. Wayne/Indianapolis
$10,368.00
Train 3 – Louisville
$1,264.00
Truck 6 - Columbus
$9,495.00
Train 4 – Ft. Wayne
$1,056.00
Total Cost:
$67,828.50
Train 5 – Indianapolis
$680.00
Total Cost for Rail:
$7,381.00
Total Cost for Truck:
$17,608.50

8. Total Cost:
$24,989.50
Total Reduction:
$42,839.00
By utilizing rail for the largest shipments and the longest
distance under the tapering principle as a part of intermodal
transportation in week five I was able to reduce transportation
costs by more than 60% to save Cincinnati Seasonings
$42,839.00. The use of intermodal transportation continued
throughout the remaining week’s assignments to subsequently
allow for break-bulk warehouses to be established to further
company growth in week nine. During week nine the simulated
total costs associated to expanding the supply chain to allow for
further company growth became visible when I added these
additional warehouses but did not add any additional stores to
signify potential revenue increases. This decrease in profits for
week nine was caused by the increased running costs of
transportation, increased operating costs of the new warehouses,
and the additional inventory carrying costs. While these
additional costs are allowing for company growth, if not
implemented properly they can be detrimental to an
organization that lacks profit to cover these costs or fails to
have the proper technology in place.
Technology such as materials resource planning (MRP) systems
to “aid in interfacing between purchaser and supplier” or
advanced planning and scheduling (APS) systems to add in
“identifying the most cost-effective trade-offs considering all

9. relevant costs” can improve decision making and provide
increased supply chain visibility (Bowersox et al., 2013).
Further technological undertakings such as implementing the
use of semi-automated or automated systems can dramatically
improve a firm's profits by reducing labor costs and allowing
for potential continuous product flow. While these aspects are
not considerations that are relevant in the SCM Globe
simulation, they are very relevant for every domestic or global
firm to examine.
Prior to accomplishing week ten's goal of establishing company
growth, week nine's assignment of expanding supply chain
operations to support company growth needed to be
implemented. This involved adding the break-bulk warehouses
and adjusting shipments to accommodate the increased
inventory. Figure 4 below provides the data associated to the
increased operations costs associated to expanding the supply
chain to support company growth while figure 3 provides the
transportation cost data during this process.
Figure 3: Transportation Costs
Week 9 Goal: Expand Supply Chain to Support Company
Growth
After 30 Days
Vehicle
Running Cost
DC Train 1
$1,096.00
DC Train 2
$792.00
Factory Truck 3
$3,118.50

10. Train 1- Louisville DC
$1,176.00
Train 2 – Lexington DC
$1,104.00
Train 3 – Louisville DC
$1,272.00
Train 4 – Ft. Wayne DC
$1,016.00
Train 5 – Indianapolis DC
$680.00
Truck 3 – Indianapolis DC
$4,995.00
Truck 6 – Columbus DC
$10,125.00
Truck 1 – West Ft. Wayne
$3,118.50
Truck 1 – East Lexington
$4,860.00
Truck 1 – South Columbus
$7,209.00
Truck 1 – South Indianapolis
$6,723.00
Truck 1 – West Louisville
$8,545.50
Total Cost for Rail
$7,136.00
Total Cost for Truck
$48,694.50
Total Combined Cost
$55,830.50
Figure 4: Inventory/Operating Costs
Week 9 Goal: Expand Supply Chain to Support Company
Growth

11. After 30 Days
Facility
Quantity on-hand
Value
Seasonings Factory
1161
$1,271,000.00
Seasonings DC
1513
$1,240,000.00
West Louisville Store
175
$108,500.00
South Indianapolis Store
205
$108,500.00
West Ft. Wayne Store
255
$86,800.00
South Columbus Store
225
$83,700.00
East Lexington Store
230
$83,700.00
Louisville DC
763
$465,000.00
Indianapolis DC
765
$465,000.00
Ft. Wayne DC
761
$465,000.00
Columbus DC

12. 772
$465,000.00
Lexington DC
762
$465,000.00
Total
7587
$5,307,200.00
Using the on-hand data from week four figure 1 of
$3,828,000.00 and comparing it to week nine figure 4 on-hand
data of $5,307,200.00, the added inventory needed to supply the
break-bulk warehouses increased inventory by $1,479,200.00
over 30 days. This led to week ten's goal to re-implement
inventory reduction in order to decrease this added cost. Also
by adding the break-bulk warehouses, combined transportation
costs increased from week five's total in figure 2 of $24, 985.50
to week nine's total combined transportation costs in figure 3 of
$55,830.50. This $30,845.00 increase in combined
transportation costs associated to week nine's goal of expanding
the supply chain to support company growth also has the
potential to be reduced in week ten.
Several goals were set in place for week ten, such as decrease
inventory costs, reduce transportation costs, and to establish
supply chain expansion by adding fifteen more stores in the
current regions. In week ten these adjustments increased
company value from $5,307,200.00 in figure 4 to $6,918,400.00
in figure 5 seen below, a $1,611,200.00 increase while reducing
on-hand quantities by 1566. Along with increased value came
increased transportation costs due to the need for more short
distance trucks and increased number of shipments made to the
break-bulk warehouses. Figure 6 displays the data associated to
the increased transportation costs associated to week ten's

13. supply chain growth.
Figure 5: Inventory/Operating Costs
Week 10: Establish Company Growth- Quadrupling Cincinnati
Seasonings Organization
After 30 days:’
Facility
Capacity
Quantity on-hand
Value
Seasonings DC
2.65
397
$1,280,000.00
Seasonings Factory
54%
1890
$1,456,000.00
Columbus DC
5.56
278
$480,000.00
East Columbus
16
80
$86,400.00
West Columbus
16
80
$86,400.00
North Columbus
16
80
$86,400.00

14. South Columbus
15
75
$86,400.00
Ft. Wayne DC
9.8
490
$480,000.00
East Ft. Wayne
16
80
$86,400.00
West Ft. Wayne
11
55
$89,600.00
North Ft. Wayne
16
80
$86,400.00
South Ft. Wayne
8.4
42
$86,400.00
Indianapolis DC
9.32
466
$480,000.00
East Indianapolis
16
80
$86,400.00
West Indianapolis
16
80
$86,400.00

15. North Indianapolis
16
80
$86,400.00
South Indianapolis
21
105
$112,000.00
Lexington DC
8.92
446
$480,000.00
East Lexington
16
80
$86,400.00
West Lexington
16
80
$86,400.00
North Lexington
16
80
$86,400.00
South Lexington
16
80
$86,400.00
Louisville DC
9.04
452
$480,000.00
East Louisville
16
80
$86,400.00

16. West Louisville
25
125
$112,000.00
North Louisville
16
80
$86,400.00
South Louisville
16
80
$86,400.00
Total:
6021
$6,918,400.00
In week ten transportation costs increased $88,281.00 with the
addition of fifteen new stores, with trucking costs being the
largest increase in transportation costs totaling $116,599.50 in
figure 6, a $67,905.00 increase from figure 3 in week nine. Rail
remained the cheapest transportation mode regarding the
volume and distance being transported at $27,512.00 in figure 6
compared to the $7,136.00 in figure 3. These costs still have
the potential to be reduced further by adjusting the size of the
truck transporting the Spicy Cube from the break-bulk
warehouses to the regional stores. Utilizing one large truck to
deliver to the four stores in an area instead of four small trucks
for each store could reduce the transportation costs in the
supply chain even further.
Figure 6: Transportation costs:
Week 10: Establish Company Growth- Quadrupling Cincinnati
Seasonings Organization

17. After 30 days:
Vehicle
Running Cost
DC Train 1
$2,152.00
DC Train 2
$2,560.00
DC Train 3
$2,560.00
DC Truck 1
$2,794.50
Train 1 – Louisville DC
$2,560.00
Train 2 – Lexington DC
$3,600.00
Train 3 – Louisville DC
$1,720.00
Train 4 – Ft. Wayne DC
$4,744.00
Train 5 – Indianapolis DC
$3,800.00
Train 6 – Columbus DC
$3,816.00
Truck 1 – West Ft. Wayne
$3,888.00
Truck 1 – East Lexington
$4,941.00
Truck 1 – South Columbus
$7,411.50
Truck 1 – South Indianapolis
$6,844.50
Truck 1 – West Louisville
$8,707.50
Truck 2 – East Ft. Wayne

18. $4,941.00
Truck 2 – East Louisville
$4,860.00
Truck 2 – North Columbus
$7,128.00
Truck 2 – North Indianapolis
$6,844.50
Truck 2 – West Lexington
$4,779.00
Truck 3 – North Ft. Wayne
$5,224.50
Truck 3 – North Lexington
$4,860.00
Truck 3 – North Louisville
$4,981.50
Truck 3 – West Columbus
$5,305.50
Truck 3 – West Indianapolis
$5,670.00
Truck 4 – East Columbus
$7,330.50
Truck 4 – East Indianapolis
$4,900.50
Truck 4 – South Ft. Wayne
$4,941.00
Truck 4 – South Lexington
$4,900.50
Truck 4 – South Louisville
$5,346.00
Total Rail Cost:
$27,512.00
Total Truck Cost:
$116,599.50
Total Cost:
$144,111.50

19. In conclusion, the culmination of the assignments from week
one through week nine of the SCM Globe Simulator have aided
in the expansion of my understanding regarding supply chain
logistics and the many issues an organization may face. While
my initial thoughts of the simulator were not very flattering, I
later found it to be extremely helpful in portraying the logistics
of a supply chain. Occasionally the aspects associated to
refreshing the browser or the time it took to run the simulator
with such a large supply network was still frustrating at times,
for me SCM Globe was still a great resource for this course.
References
Bowersox, D.J., Closs, D.J., Cooper, M.B, Bowersox, J.C.
(2013). Supply Chain Logistics
Management, (4th ed). McGraw-Hill Co Inc., New York, NY.
Cincinnati Seasonings Summary Paper Rubric
Weekly Assignments and Discussions
A logistics network simulation titled "Cincinnati Seasonings" is
an integral part of ASCM 629. Its purpose is to illustrate the
interplay of manufacturing, transportation, warehousing, and
retail sales as these facets impact inventory management.
Weekly assignments illustrate the concepts that are presented
within the weekly readings and PowerPoint presentation
summaries. Assignments for Weeks Two through Six and Seven
through Nine are included in the Course Schedule within the
Syllabus. The assignment for Week Ten is for a student to
summarize their learning achievements in a paper. This paper is
posted during the Week Eleven SCM Globe discussion for other
students to read and comment upon.
===============================================

20. ========
Cincinnati Seasonings Summary Paper – 100 points
===============================================
========
Please summarize your Week 2 through 9 Cincinnati Seasonings
learning as an approximately ten-page paper. The paper will
follow the outline below. The outline sub-topics should be used
as subheadings within the summary paper.
I. Introduction (up to 20 points)
A. Overview of Cincinnati Seasonings
B. The initial supply chain scenario
II. Accomplishments (up to 20 points)
A. What went well
B. How could you have improved
III. Comparison (up to 20 points)
A. Week Two's outcome compared to Week Nine's results
B. What if (select one of the items below and run the
simulation to report on the outcome):
1. What would happen if you began using larger trucks that had
higher operating costs per kilometer but could also carry twice
as much cargo?
2. The Cincinnati factory is located on rail lines; what would
happen if you located the warehouses so that they were also
located near rail lines? Could you lower transport costs?
3. Would it make sense to use air transportation to move

21. products in this supply chain?
4. Is it better to expand the existing factory to support demand
from the new stores or better to keep existing factory as is and
build a new factory closer to the new stores?
IV. Conclusion (up to 20 points)
A. If you were to do the simulation series over, what would
you have done differently?
B. Recommendation: How could this learning experience be
improved?
Formatting (up to 20 points)
Please do not omit any of the listed subtopics while preparing
your Cincinnati Seasoning summary paper. Aspects that are not
covered will result in fewer points awarded for that section. A
discussion within each aspect is required for a full score of 100
points for the summary paper. This paper will be due in each
student's assignment folder by 11:59 PM Eastern Time on the
Sunday at the end of Week 10. Students will then share their
paper with others during the Week 11 conference as a posting
attachment. Please post the paper by Tuesday during Week 11
so that other students have an opportunity to read and respond
during the Wednesday through Sunday of Week 11.
APA format is required. See this link and sample paper
provided in announcement for more info:
https://owl.english.purdue.edu/owl/resource/560/01/

22. I. Introduction /20 points
A. Overview of Cincinnati Seasonings
B. The initial supply chain scenario
II. Accomplishments /20 points
A. What went well
B. How could you have improved
III. Comparison /20 points
A. Week Two's outcome compared to Week Nine's results
B. What if (select one of the items below and run the
simulation to report on the outcome):
IV. Conclusion /20 points
A. If you were to do the simulation series over, what would
you have done differently?
B. Recommendation: How could this learning experience be
improved?
Formatting /20 points

23. APA format is required. See this link and sample paper
provided in announcement for more info:
https://owl.english.purdue.edu/owl/resource/560/01/
Rubric_Cincinnati_Seasonings.docx