Excel Logistics Case Essay Example for Free

Excel Logistics Case EssayPurposeTo usher in participants to the supply chain concept and to the effects decisions along the chain have on livestock levels and be. opening In this game the retailer sells cases of beer to a consumer and rates cases of beer from the contact the wholesaler sells cases of beer to the retailer and orders cases of beer from the allocator and the distributor sells cases of beer to the wholesaler and orders beer from the factory (brewery). The factory brews the beer. The beer supply chain is shown belowPlayers of the game each take on a different role in the supply chain. The roles be the Factory, Distributor, Wholesaler and Retailer. Each position is directly linked, and beer bottom of the inningnot ignore the adjacent position. For example, the Wholesaler orders beer from the Distributor, and ships beer to the Retailer. An important consideration in making decisions is the delay in the movement of beer by the supply chain. It takes three int ents 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 and then would be available for sale by the Retailer at the beginning of period 6. Similarly, orders are not visible to the upstream player for one period. For example, if the Wholesaler places an order in period 3, the order is true by the Distributor at the beginning of period 4. For each period of play, every participant follows the equivalent cycle1. The system is updated by your instructor where new orders and shipments are adjoind, shipments enroute are advanced, and stock-taking levels and backorder positions are mensurable (these tasks are done automatically by the server plan. 2. The player updates the status screen and reviews modern position. 3. A tape drive decision is do according to new orders and backlog, subject to stemma availability, 4. An ordering decision is made for more beer.There are only two costs involved in this simplified displacement 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 being 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 total game cost for the dissemination system is the sum of the four individual participants total 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 current inventory, 4 cases in each of the production delay pipeline, 4 cases in each of the shipping delay pipeline, each position has an initial or der for 4 cases of beer.DefinitionsThe pastime terms are used in the status report Current Demand This is the look at for the current period at this position. For the Retailer, this necessary is determined by an external demand stream. For all other positions, this demand reflects an order placed by the downriver 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 amount 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 will reflect the current order and shipment decisions. Remember that later the instructor has updated the system, the status bu tton 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 spell of units that are scheduled to arrive at this position next period. Due In Two Periods This is the subject 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 monetary value 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 the downstream position, updates the cumulative inventory and backorder costs based on the inve ntory 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.