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Operate a Logistics Company (Case Study 3) (Overview and first 3 Runs)

Operate a Logistics Company (Case Study 3) (Overview and first 3 Runs). EGN 5621 Enterprise Systems Collaboration Fall, 2011. Gain the experience of running a logistics company Learn to use process management as a competitive edge. Learn to use the ERP system to support business strategies

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Operate a Logistics Company (Case Study 3) (Overview and first 3 Runs)

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  1. Operate a Logistics Company (Case Study 3)(Overview and first 3 Runs) EGN 5621 Enterprise Systems CollaborationFall, 2011

  2. Gain the experience of running a logistics company • Learn to use process management as a competitive edge. • Learn to use the ERP system to support business strategies • Appreciate the concepts and benefits of enterprise systems systems integration Learning Objectives

  3. Each team consists of up to 4 members. • Each team operates a logistics company selling dairy products. • Using standard reports, each team makes business decisions in order to optimize the profitability of its operations. Logistics Game

  4. DairyProducts

  5. Each company owns a main warehouse which receives and stores products ithas purchased from a dairy cooperative. Business Environment Design

  6. Products Details

  7. Eachregion has unique preferencesrelated to the productsitwishes to purchasefromyourcompany. Preferences change everygame. The Market’sPreferences

  8. You willneed to set-upprices for yourproducts. The price for eachproductwillbeapplied to all 3 regions. One Price List in Distribution Channel 16

  9. You will have to manage transportation fees with care in order to maximize your company’s profits. Cost : 1000 € per PO Transportation Fees Cost : 100 € per regionaltranfer

  10. You must determine a logistics strategy in order to make your products available for sales through your regional storage location. OR LogisticsStrategy

  11. A Push strategy specified the quantity of each product to be delivered to each area and the number of days between deliveries. A Push LogisticsStrategy

  12. A Pull strategy specifies the target quantity for each product in each area and the number of days between deliveries. A Pull LogisticsStrategy

  13. Each round will last 10 days(a bit more than one minute per day) • No initial inventory for each product. • End-of-round inventory is carried over to the next round. • You may sell a product only if the stock is available through your regional storage location. • You are competing against other teams. • Your objective is to maximize profits. Rules of the Game

  14. There are warehousing costs whenever the company’s total inventory exceeds 4,000 boxes. The cost is 100 € per day for eachadditional 100 boxes exceeding 4,000. • Market size: About € 6,000 per company per day. • Lead time fromsuppliers: 1 – 3 days • Lead time to customers: 1 – 3 days Rules of the Game

  15. Plan for independent requirement for each finished product (MD61) • Run MRP (MD01) • Covert purchase requisitions to purchase orders (ME59N) • Transfer stock (ZMb1B) • Maintain prices for each products (VK32) • Check reports • Purchase order report (ZME2N) • Inventory report (ZMB52) • Summary sales report (ZVC2) • Sales report (ZVA05) • Financial statement (F.01) Major Business Activities

  16. Make sure that the regional warehouses have the required stock needed to meet demand while reducing the delivery, purchase order numbers, and warehouse cost. • To excel, each company must have a good strategy; departments must coordinate their efforts efficiently, respond to market requirement/changes quickly, and use the ERP system effectively. Major Business Activities

  17. 15 min 15 min 15 min 10 days 10 days 10 days Round … Round 8 Round 1 Game layout

  18. Job Aids (1/2)

  19. Job Aids (2/2)

  20. Client will be provided by the instructor Login: logistics_$# Where $ is your team letter And # is your number Password: ERPSIM You will have to change your password the first time you enter Login information

  21. Top Menu: Extras / Settings / Display technical names SAP Menu & Navigation

  22. Logistics Game: Round 1 15 min 10 days

  23. Participant’s job aid & Menu

  24. First Screen Second Screen Forecasting

  25. Execute MRP

  26. Convert purchase requisitions into purchase orders

  27. Track purchase orders

  28. Logistics Transfer Planning

  29. Stock in material overview

  30. 16 Maintain Prices for DC 16

  31. Check sales summary report

  32. Check financial statement

  33. Logistics Game: Round 1 15 min 10 days

  34. Now start the simulator for 10 days The Logistics Game: Round 1 (10 days)

  35. Logistics Game: Round 2 - 8 15 min 10 days

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