Why Supply Chain Management Is So Difficult (Essay Sample)
The purpose of this paper will be to answer the following questions based on the below simulation. PLEASE write an A+ paper and DO Not write only 1 and a one half pages, write 2 FULL pages please with substantial information that answers & discusses the following questions in depth based on the below simulation, readings and cases______
For this paper you NEED to Answer in-depth the following questions;
1. What did you do in the simulation?
2. What activities did you engage in?
3. What did you learn about what's going on?
4. What have you learned about supply chain management from your participation in this simulation?
5.) What is the importance of supply chain management (SCM) through a simulation exercise?
6.) What are the components of SCM and how are they broken down into parts?__________
**BACKGROUND ON PROJECT: To begin to get a personal feel for how these processes work, there's nothing like a good simulation exercise. Thousands have felt the frustration of supply chain management in MIT's Sloan School of Management's "beer game." The simulation involves retailers, wholesalers, distributors, and brewers of beer. As the backlog of orders increases, players tend to order too much inventory, forcing their teammates into severe backlogs further down the supply chain. The game can be emotionally intense. John Sterman, Director of MIT's System Dynamics Group writes, "During the game emotions run high. Many players report feelings of frustration and helplessness. Many blame their teammates for their problems; occasionally heated arguments break out." We hope that your work with this similar simulation will involve less drama.
**FIRST STEP to this paper is to access the simulation “The Root Beer Game Simulation”. Instructions for running The Root Beer Game simulation: 1.) Forio Group. (2011). Root beer game demo. HBR. Retrieved from http://forio(dot)com/simulation/harvard-root-beer-game-demo/login.htm
2.) •Review the Simulation Summary, Your Role, and How to Play sections under the Prepare tab.
3.) •Go to the Analyze tab to run the simulation.
4.) •Submit your weekly order in the Enter Order field; at least 20 rounds are necessary to get a good feel for the problems involved.
5.) •When finished, review your performance under the Dashboard Overview, Inventory and Shipments, Orders and Backlog, and Cost Detail tabs.
** It sounds easy, right? Try it and see how good you are at getting root beer to your customers while keeping your inventory and costs low. See if you can control the bullwhip oscillations of stock-outs followed by over-supply. To run the simulation several times, you will need log out and start again. The log out command is on the bottom left side of the page. Spend a maximum of 30 minutes working with the game. If you cannot access the Root Beer Game link, use the alternate “Near Beer” link below and play the game, Forio Group. (2011). Near beer game demo. Forio. Retrieved from http://forio(dot)com/resources/article/bullwhips-and-beer/
**** In this paper, it is requires that you integrate, discuss, use in-text citations and fully reference at least four academically relevant sources. Use enough concurrent discussion so that the purpose of each citation is apparent. (Note that the paper is incomplete without at least four academically relevant references. Articles from sources such as CIO and HBR are acceptable. You may also use corporate/military references, but they do not count as part of the three required references.) You MUST - 1.Demonstrate your understanding of the coordination needed in supply chain management. -2. Provide some in-text references to the below background readings listed. ***These are the listed background readings you MUST USE; #1.) NetMBA. (2011). The value chain. Business Knowledge Center. Retrieved from http://www(dot)netmba(dot)com/strategy/value-chain/ #2.) Porter, M. E. (2008, January). The five competitive forces that shape strategy. Harvard Business Review, 79-93. Available in the Trident Online Library. #3.) Harvard Business Publishing. (2008). Interview with Michael Porter: The five competitive forces that shape strategy. [Video file]. Retrieve from http://www(dot)youtube(dot)com/watch?v=mYF2_FBCvXw #4.) Berns, M., Townsend, A., Khajat, Z., Bagopal, B., Reeves, M., et al. (2009). The Mini-cases: 5 companies, 5 strategies, 5 transformations. The Magazine MIT Sloan Management Review Special Report. Retrieved from http://files(dot)meetup(dot)com/1325336/MITSloan%20Mgmt%20Review%20The%20Biz%20of%20Sustainability.pdf #5.) Papers on Porter’s Generic Strategies. (2009). What is Porter's generic strategies analysis? Retrieved from http://www(dot)coursework4you(dot)co(dot)uk/essays-and-dissertations/porter-generic-strategies.php; #6.) Eseyin, K. (2006, September 7). ERP implementation and business process re-engineering. Kehinde Eseyin’s SAP library. Retrieved from http://it(dot)toolbox(dot)com/blogs/sap-library/erp-implementation-and-business-process-reengineering-11537.
Why Supply Chain Management Is So Difficult…Reducing the Bullwhip Effect
Module 2 SLP
Businesses increasingly operate as supply chains, and companies need to manage customer, supplier and distributor relations across the supply chain (Disney, & Lambrecht, 2008). The beer distribution game simulates a supply chain to represent the bullwhip effect, and with four members working without consulting each other (Dyckhoff, Lackes & Reese, 2004). Furthermore, the bullwhip effect occurs because there is no information sharing and communication across the supply chain, and there is excessive safety stock (Li, 2007).
In the simulation, the orders placed for the retailer were then necessary to provide information on the total orders received as well as the cumulative costs depending. There was an assumption that the orders placed were 50,000 for the retailer and this meant that there was no backlog for the first three years. The total cost in each of the three years was $75,000.00. This then corresponded with the total units needed as well as the outgoing shipment. The outgoing shipment changes depending on the incoming orders and backlog.
Activities in the simulation exercise
I was engaged in placing new orders and ensuring that there was low or no backlog, in order to accommodate customer demands. There is an assumption that the costs are constant and price fluctuation plays no role in the exercise. One of the generic strategies is through cost leadership that highlights on having the lowest-cost producer, as this is likely to increase profits compared to competitors (Papers on Porter’s Generic Strategies, 2009).
Lessons from the simulation exercise
The simulation game demonstrates the operations of a supply management system from the retailer, wholesaler, distributor to the factory (Forio Group 2011 a). Since the game focuses on the activities of the retailer first, there are tasked with placing the new orders managing the inventory, as well as shipment. Supply chain management focus son customers placing orders, while the retailer then keeps track of sales, raw materials as well as the optimum supplies (Forio Group, 2011 b). Supply chain management and simulation
Integration and coordination of activities are necessary for the supply chain to management of the bullwhip effect (Wang, 2012). Responding to customer needs is essential, as this also allows for proper planning and forecasting. For instance the case for ERP implementation highlights re-engineering needs to take into account whether there is a defective key (Eseyin, 2006). Equally, the supply chain management helps to analyze any deficiencies that result to slow response in attaining the optimum order while also replenishing the available stock levels.
Importance of supply chain management (SCM)
The simulation process depicts a proposed system that helps to identify the factors that influence the supply chain system. There is an assumption that the modeling would show factors that influence future behavior. The simulation exercised helps to identify the optimal operation level, while comparing results between altern...
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