Freddie Barnard
Department of Agricultural Economics
Purdue University
 Overview
of the simulation
 Management
tools taught
 Contact information
 Demonstrate
the simulation - after the session
 Updated
Purdue Farm Supply Game
 Farm supply store
 Students divided
 Teams
 Three
- sells feed and fertilizer
into ‘teams’
are divided into ‘markets’
interest rate scenarios
 Four positions per
team
General Manager
Inventory Manager
Labor Manager
Cash Manager
A
decision form is completed each decision
 Each
decision represents one quarter
 Maximum simulation time
 Sales
vary from quarter to quarter
 Students
years
is 12 quarters
provided sales records for previous 3

Each store sells the same four products
Complete feed
Concentrate feed
Commercial grade fertilizer
Custom blend fertilizer

Lost sales are reported as unfilled orders

Emergency orders
 All
stores start from an identical financial
position
 Profits determine the
 All
winning team
profits are retained over the entire
simulation time and determine the winning
team
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Product prices
Product orders
Emergency orders
Advertising
Credit policies
Storage/truck purchase vs. rent
Labor
Borrowing
Repaying loans
Investing
Team Name:
Purdue Agribusiness Management Simulation: Decision Form
Market Number: ______
Group Members: _________________________ Seat #: ______
Phone #: __________________
Team Number:
______
_________________________
______
__________________
Period (1-12):
______
_________________________
______
__________________
_________________________
______
__________________
1) Price for Complete Feed ($/ton):
$ ___ ___ ___ . ___ ___
2) Price for Concentrated Feed ($/ton):
$ ___ ___ ___ . ___ ___
3) Price for Commercial Grade Fertilizer ($/ton):
$ ___ ___ ___ . ___ ___
4) Price for Custom Blend Fertilizer ($/ton):
$ ___ ___ ___ . ___ ___
5) Quantity of Complete Feed ordered (tons):
___ ___ ___ ___ . ___ ___
6) Quantity of Concentrate Feed ordered (tons):
___ ___ ___ ___ . ___ ___
7) Quantity of Commercial Grade Fertilizer ordered (tons):
___ ___ ___ ___ . ___ ___
8) Quantity of Custom Blend Fertilizer ordered (tons):
___ ___ ___ ___ . ___ ___
9) Place emergency orders (Yes/No):
10) Advertising Expenditure:
11) Credit Policy (1, 2, or 3):
12) Storage capacity expansion expenditures (tons) :
13) Truck purchase expenditure (# of trucks) :
14) Total Employees:
______
$ ___ ___ ___ ___
______
___ ___ ___ ___
______
___ ___ . ____
15) Borrow money ($) :
$ ___ ___ ___ , ___ ___ ___
16) Repay loan ($) :
$ ___ ___ ___ , ___ ___ ___
17) Call investment ($) :
$ ___ ___ ___ , ___ ___ ___
18) Make investment ($) :
$ ___ ___ ___ , ___ ___ ___
 Income
Statement – current quarter (per ton
and percentage of sales) and past 12 months
 Balance Sheet
 Sales Report
 Storage, Truck and Labor Utilization Report
 Actual Cash Flow
 Market Share Report
Cash
Flow – Pro Forma and Actual
Breakeven
Profitability Linkage Model–Comparisons
Over time
Peer group data
Pro forma Balance Sheet and Income
Statement
Software
Manual
Forms
Freddie Barnard
Department of Agricultural Economics
Purdue University
403 W. State Street
West Lafayette, IN 47907
barnardf@purdue.edu
(765) 494-4242