ITECH7413: ERPSim Game Reflection Report - Logistics Game Analysis

This report analyzes a student's experience playing an ERP-based logistics game over three rounds. The game simulated a dairy product supply chain in Germany, where teams made decisions on pricing, storage, and distribution. The report details the team's performance, strategic decisions, and outcomes in each round, highlighting improvements made over time. It reflects on the challenges faced, such as short game durations and initial poor performance, and the importance of teamwork, strategic pricing, and competitor analysis. The student discusses key learnings, including the impact of small price changes on demand, the need for strategic focus, and the value of patience and adaptation in a competitive environment. The report also identifies areas for improvement, such as more in-depth competitor analysis and a broader understanding of market dynamics. Overall, the report provides a comprehensive reflection on the game's educational value in understanding business decision-making and supply chain management principles.

Analysis of ERP Game for three rounds
TEAM N
Introduction
The assignment pertains to analysis of three rounds of logistic game played on an ERP
Package software. There are 5 participating team in the game and the game has exquisite set
of rules for playing. The game for 15 minutes per round and the catered market was
Germany.
The rules of the game has been enumerated here-in-below:
(i) There is a Central Warehouse for storing the products;
(ii) There are three locational storehouse for distributing products;
(iii) Market Tapped is Germany;
(iv) Products marketed encompass Milk, Cream, Yoghurt, Cheese, Butter and Ice Cream;
(v) Market is highly competitive and no negotiation for pricing can be done;
(vi) 12 Retail Stores in the market i.e. 4 Per Area;
(vii) Payment of Bills will be done in 2 days;
(viii) Average Spent of Customer on dairy product is Euro 12,000;
(ix) Investment by shareholders in the business is Euro 500,000;
(x) Amount of asset Euro 250,000 and balance is Cash i.e. Euro 500,000;
(xi) Loan accrued on a daily basis;
(xii) No negative cash balance as the same shall impact the credit rating and shall increase
the rate of interest;
(xiii) All decision regarding storage, pricing and delivery to three zones shall be at the
discretion of team;
(xiv) Initial Stock of goods 4000 Units and replenishment takes place after every 5 day;
(xv) Additional Stock of 1000 units shall cost Euro 50 per day;
(xvi) Additional Rules as stated in the game.
Team Experience
The game has in itself being quite experience enriching start from its inception. The game has
been set on a real life model where in our team was entrusted with the responsibility of taking
strategic decision regarding the pricing, financing, storage and marketing of products. The
game was played in three rounds and the team was highly motivated and realised the
importance of timing and strategy in decision making. The game enlightened the team about
focussing in core products and giving up on non-profit making dimensions. The results
clearly highlight the same wherein the team has fared poorly in the first round with a drastic
improvement in round to round on the basis of adaptation, modification and alignment of
strategies.
The team also realised the importance of agreement and unanimousness among the team
members for effective execution of strategies. The members realised how challenging it is to
actually take strategic decision for a company and how even a cent play a role in demand and
supply gap.

Learning about the game experience today
As detailed above, the game has been quite a booster in my life as it gave me a hypothetical
experience of real life business decision. The most eye catching part for me was the
importance of a cent in the decision making. The impact on demand, the price carries and
how even a cent movement can bring down sales by cents. Further, I was also excited to learn
that business is not all about grabbing all opportunities, if one clings to some it can also make
you successful and outperform the competitor.
Learning about the game experience today- Least
The least I like about the timing of the game, it was very short to effectively come up with a
unique idea. Further, the most disheartening part was we lost the game. However, the team
was quite enthralled and experience enriched and looking forward for further such strategic
decision making.
Knowledge of the game
The exact impact of the variable like price in decision making, known earlier could have
impacted our outcomes by leaps and bounds and would have helped us in further effective
decision making, Also, the knowledge regarding that all the opportunities should not be
grabbed would also have played a significant role in enhancing the outcome. The game in
itself is evolving with new inputs, hence no one can actually control it, and rather it should be
mastered with experience.
Learning about the game experience today
As detailed above, the game has been quite a booster in my life as it gave me a hypothetical
experience of real life business decision. The most eye catching part for me was the
importance of a cent in the decision making. The impact on demand, the price carries and
how even a cent movement can bring down sales by cents. Further, I was also excited to learn
that business is not all about grabbing all opportunities, if one clings to some it can also make
you successful and outperform the competitor.
Additional Skills
The additional skills which would have created a deep impact was a business attitude,
strategic decision making, patience and competitor action analysis. The team believe all these
would have created a huge difference and would have improve the performance by leap and
bound. Further, knowledge of the data crunching and importance of adaptation and
modification with the changing scenario is a critical factor.
Round 1
In the first round, Team N has fared not very good as the outcome of the results were
unfavourable for the team. The team had a rating of AAA+ which is at par with other team
members. However, on an company valuation front, the results of the company was negative
which implies poor decisions undertaken on the part of the team regarding the prices and
distribution as a result of which the team has fared very badly in the game. The graphic
representation of the results of valuation and corresponding rank has been presented as under:
5
6
Rank

Round 2
In the second round, Team N has fared not very good as the outcome of the results were
unfavourable for the team but better in comparison to previous round. The team had a rating
of AAA+ which is at par with other team members. However, on a company valuation front,
E G H M N
0
1
2
3
Total Sales
E G H M N
E G H M N
0
1
2
3
4
5
6
7
8
9
10
Gross Margin (%)

the results of the company was better than in previous round. However, when compared with
members of other team the results are not as attractive as the team has performed poorly
compared to members of other team. The outcome is generally on account of poor decisions
undertaken on the part of the team regarding the prices and distribution as a result of which
the team has fared very badly in the game. The graphic representation of the results of
valuation and corresponding rank has been presented as under:
E G H M N
0
1
2
3
4
5
6
Rank
E G H M N
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
Company Valuation
332725.28
Total Sales

Round 3
In the third round, Team N has fared not very good as the outcome of the results were
unfavourable for the team but better in comparison to previous round. The team had a rating
of AAA+ which is at par with other team members. However, on a company valuation front,
the results of the company was better than in previous round. However, when compared with
members of other team the results are not as attractive as the team has performed poorly
compared to members of other team. The outcome is generally on account of poor decisions
undertaken on the part of the team regarding the prices and distribution as a result of which
657811.45
697992.26
564482.83
235379.41
E G H M N
E G H M N
0
2
4
6
8
10
12
Gross Margin (%)

the team has fared very badly in the game. The graphic representation of the results of
valuation and corresponding rank has been presented as under:
E G H M N
0
1
2
3
4
5
6
Rank
E G H M N
0
500000
1000000
1500000
2000000
2500000
3000000
Company Valuation

Conclusion
On analysing the results of the above rounds, it may be inferred that results of the team has
been poor in all the rounds. However, there has been drastic improvement from round 1 to
round 3. If given a second opportunity, we would have improved further by reducing prices
and improving on marketing to boost sales and profit. Further, skills regarding game,
marketing, competitor analysis and strategic pricing would have helped the team in better
marketing.
The game has been quite captivating with a deep insight on strategic decision making
regarding pricing, finance, cost cutting and the storage and marketing. The game has helped
me to learn how in appropriate strategy lead to negative valuation and result in lower sales.
Further, the game enshrined in me the concept of timing in marketing. The most important
thing learnt was team bonding, strategic decision making and importance of price in sales and
demand. The game also taught me that patience is key to success.
714703.45
1008037.82
751035.69
440782.01
522941.83
Total Sales
E G H M N