Distribution Game
Pierre-Majorique LÉGER
Jacques ROBERT
Gilbert BABIN
Robert PELLERIN
Bret WAGNER
Version : August 2012
Version 2012-2013
Copyright © 2012 HEC Montréal
ERP Simulation Game
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
About ERPsim
About ERPsim Lab
• The mission of ERPsim Lab is to conduct
research, development and transfer in the field of
serious games in information technology.
• It has created ERP business simulations that are
used in more than 150 universities worldwide and,
through its commercial arm, Baton Simulation Inc.,
in many large corporations.
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
ERPsim Lab:
Development team
• Research team
• Prof. Pierre-Majorique Léger, Ph.D., Director ERPsim Lab (HEC
Montréal)
• Prof. Gilbert Babin, Ph.D. (HEC Montréal)
• Prof. Jacques Robert, Ph.D. (HEC Montréal)
• Prof. Robert Pellerin, Ph.D. (École Polytechnique de Montréal)
• Prof. Bret Wagner, Ph.D. (Western Michigan University)
• Technical team
• Jean-François Michon, M. Sc. (HEC Montréal)
• Arnaud Paquet, BAA. (HEC Montréal)
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
What is ERPsim ?
Automated by ERPsim
Sales
Automated by ERPsim
Procurement
Automated by ERPsim
Planning
Automated by ERPsim
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Introduction to the
distribution game
ERP Simulation Games:
Pedagogical objectives
• To show how the ERP system
supports business strategies
• To develop a hands-on
understanding of the concepts
underlying enterprise systems
• To experience the tangible
benefits of enterprise integration
firsthand
• To develop technical skills at
taking decision using an
enterprise software
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Distribution game
• In groups of at most 4
participants, each team
operates a bottle
distribution company.
• Using standard reports,
participants have to make
business decisions to
ensure the profitability of
their operation
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
German market
• 6 products (boxes of 12x1L and 24x500mL)
• 3 areas with distinct marketing accounts
West
• One distribution channel : 18
40 retailers
• Market size of about € 6,000 per company per step
North
45 retailers
South
38 retailers
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
6 products
Product Code
Product Description
Units in box
Cost of boxes
$$-B01
1L ClearPure
12 bottles
11.99
$$-B02
1L Spritz
12 bottles
14.99
$$-B03
1L Lemon Spritz
12 bottles
16.99
$$-B04
500mL ClearPure
24 bottles
16.99
$$-B05
500mL Spritz
24 bottles
19.99
$$-B06
500mL Lemon Spritz
24 bottles
22.99
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Game layout
25 min
20 steps
25 min
20 steps
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
25 min
20 steps
Rules of the game
• Each round will be of 20 steps (a bit more than 1
min per step)
• End-of-round inventory is carried over to the next
round
• You can sell a product only if you have it in stock
• You compete against the other teams and
importers
• Your objective is to maximize profit
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
SAP Navigation
ABC of Enterprise systems
• An enterprise system is build around an integrated
database
• A system such as SAP contains tens of thousands
data tables
• When a user creates, changes or views data in the
system, he or she performs a transaction
• Data changed or created by one user can be exploited
by all other users (ex. reporting, tracking, execution of
orders, etc.)
• All transactions are traceable, transactions with
financial impacts can be reversed, never erased
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
User interface
• Users interact with the enterprise system through
transactions.
• A large number of pre-programmed transactions exist
in SAP
• Each transaction has a transaction code – one can
call a transaction if one knows the transaction code
• The SAP menu allows to browse and find the desired
transaction
• One can create a user menu or a list of favourites
with the commonly used transactions
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
SAP Menu & Navigation
Extras / Settings / Display technical names
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Reports and queries
• Reports and queries are transactions that allow
users to view existing data
• A typical query is performed as follows:
• In the first page of the transaction, you must enter the
selection criteria for the query (ex. Company code,
product code, etc.)
• Then, click on
to execute the query
• A table containing the requested data will appear
• The display and layout can sometimes be modified
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Entering new data
• Some transactions are designed to change or
create new data (change forecast, release
purchasing orders, change sale price, etc.)
• The interface varies according to data required by
the system
• The system will not allow you to save information if
all the compulsory fields have not been filled
• You must save/release/confirm before exiting the
transaction
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Other useful buttons
• Use the navigation buttons to go back or get out of
a transaction
• You can open up to 6 sessions. Click on
to
open a new session
• Delete
, search , select all , view
,
enter
.
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Participant’s job aid
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Let’s get started!
• Set up teams:
• Max 4 persons : User 1 to User 4
• Up to 26 companies : A to Z
• Log in using user name and password by your
instructor.
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Login information
Client will be provided
by the instructor
Login: $#
Where
$ = Team (from a to z)
# = User (from 1 to 9)
Password: ERPSIM (capital letters)
You will have to change your
password the first time you
enter
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Distribution Game:
Round 1
25 min
20 steps
Cost, inventory & initial pricing
Material
$$-B01
$$-B02
$$-B03
$$-B04
$$-B05
$$-B06
1L ClearPure
1L Spritz
1L Lemon
Spritz
500mL
ClearPure
500mL Spritz
500mL Lemon
Spritz
Size
1L
1L
1L
500mL
500mL
500mL
Number of bottles
in package
12
12
12
24
24
24
Cost
€11.99
€14.99
€16.99
€16.99
€19.99
€22.99
Initial price
€14.99
€17.99
€19.99
€19.99
€22.99
€25.99
Initial stock
1,000
1,000
1,000
1,000
1,000
1,000
Name
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
The Distribution Game:
Round 1 (20 steps)
• You need to maintain the price of your 6 products and invest in
marketing.
• What do you need to know in order to make that decision ?
• You need to know how to :
•
•
•
•
Maintain price list
See available stock
Monitor sales orders
Monitor competitors
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Participant’s job aid & Menu
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Maintain Prices for DC 18
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Marketing expenses
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
On marketing
• Enter your daily marketing budget for each product
and for each region
• The impact of marketing in one region depends on
your share of all marketing expenses in this region
• Marketing induces customers to find your product
“more desirable”
• The daily marketing budget can be changed at any
time
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Stock in material overview
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Check sales summary report
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Check market report
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Check sales order report
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
The Distribution Game:
Round 1 (20 days)
We start the simulator
for 20 days
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Distribution Game:
Round 2
25 min
20 days
It’s time to replenish !
• You need to replenish. Replenishment will allow
you to purchase the same quantity that you have
sold.
Material
$$-B01
Name 1L ClearPure
Initial forecast
1,000
$$-B02
$$-B03
$$-B04
$$-B05
$$-B06
1L Spritz
1L Lemon
Spritz
500mL
ClearPure
500mL Spritz
500mL Lemon
Spritz
1,000
1,000
1,000
1,000
1,000
Replenishment
Up to 3 days Up to 3 days Up to 3 days Up to 3 days Up to 3 days Up to 3 days
lead time
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Participant’s job aid & Menu
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Execute MRP
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
After the MRP run
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Convert purchase requisitions into
purchase orders
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Track purchase orders
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
The Distribution Game:
Round 2 (20 days)
We start the simulator
for 20 days
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Distribution Game:
Round 3
25 min
20 days
It’s time to replenish !
• You need to replenish. Change your forecast to adapt
the replenishment levels to your needs
• What do you need to know in order to make that
decision ?
Material
$$-B01
Name 1L ClearPure
$$-B02
$$-B03
$$-B04
$$-B05
$$-B06
1L Spritz
1L Lemon
Spritz
500mL
ClearPure
500mL Spritz
500mL Lemon
Spritz
Initial forecast
1,000
1,000
1,000
1,000
1,000
1,000
Replenishment
lead time
3 days
3 days
3 days
3 days
3 days
3 days
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Participant’s job aid & Menu
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Forecasting
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
The Distribution Game:
Round 3 (20 days)
We start the simulator for the
last 20 days
© Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan
Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca
Debriefing