Research Article Differential Game Analyses of Logistics ...
Enterprise Systems Collaboration Logistics Game
description
Transcript of Enterprise Systems Collaboration Logistics Game
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Enterprise Systems CollaborationEnterprise Systems Collaboration
Logistics GameLogistics Game
Valeria BalsecaValeria BalsecaSales & Marketing Manager
Claudia PradaClaudia PradaMM Manager
Jhonattan PoloJhonattan PoloCEO
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1. Cumulative profit and revenues1. Cumulative profit and revenues
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2. Sold Quantities & Revenue - TOTAL2. Sold Quantities & Revenue - TOTAL
TOTALPP 31535QQ 26000RR 31728
TOTALPP 1,409,629.47$ QQ 1,491,937.32$ RR 1,527,484.72$
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2. Sold Quantities by Product2. Sold Quantities by Product
Total TotalRR-T01 Milk 22151 RR-T04 Cheese 10378RR-T02 Cream 9552 RR-T05 Butter 12369RR-T03 Yoghurt 20640 RR-T06 Ice Cream 14173
Product Product
Highest: MilkLowest: Cream
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2. Revenue by Product2. Revenue by Product
Total TotalRR-T01 Milk $656,195.85 RR-T04 Cheese $901,121.49RR-T02 Cream $730,146.41 RR-T05 Butter $812,221.79RR-T03 Yoghurt $634,177.28 RR-T06 Ice Cream $695,188.69
Product Product
Highest: CheeseLowest: Yoghurt
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3. Revenue for each product and area 3. Revenue for each product and area in each company in each company
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4. Profit for each product and area 4. Profit for each product and area in each company in each company
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5. Revenue for each area and company.5. Revenue for each area and company.6. Profit for each area and company6. Profit for each area and company
Company RR dominates profits
in NO and WE areas
NO was the most profitable area for
all companies
Company RR dominates
revenues in NO and WE areas
NO was the most profitable area for all companies
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7. Price Changes7. Price Changes
€20
€25
€30
€35
€40
1 4 7 10 3 6 9 2 5 8 1 4 7 10 3 6 9 2 5 8 1 4 7 10 3 6 9
1 2 3 4 5 6 7 8
Milk
PP QQ RR
€70
€75
€80
€85
€90
1 4 7 10 3 6 9 2 5 8 1 4 7 10 3 6 9 2 5 8 1 4 7 10 3 6 9
1 2 3 4 5 6 7 8
Cream
PP QQ RR
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7. Price Changes7. Price Changes
€80
€85
€90
€95
€100
1 4 7 10 3 6 9 2 5 8 1 4 7 10 3 6 9 2 5 8 1 4 7 10 3 6 9
1 2 3 4 5 6 7 8
Cheese
PP QQ RR
€20
€25
€30
€35
€40
€45
€50
1 4 7 10 3 6 9 2 5 8 1 4 7 10 3 6 9 2 5 8 1 4 7 10 3 6 9
1 2 3 4 5 6 7 8
Yoghurt
PP QQ RR
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7. Price Changes7. Price Changes
€55
€60
€65
€70
€75
1 4 7 10 3 6 9 2 5 8 1 4 7 10 3 6 9 2 5 8 1 4 7 10 3 6 9
1 2 3 4 5 6 7 8
Butter
PP QQ RR
€40€42€44€46€48€50€52€54
1 4 7 10 3 6 9 2 5 8 1 4 7 10 3 6 9 2 5 8 1 4 7 10 3 6 9
1 2 3 4 5 6 7 8
Ice Cream
PP QQ RR
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7. Price Changes – Standard Deviation7. Price Changes – Standard Deviation
• Company PP had high price variation for Cream, Yoghurt, Cheese and Butter.
• Company QQ was not the most variable in any product.• Company RR had high price variation for Milk and Ice Cream
€ -
€ 0.50
€ 1.00
€ 1.50
€ 2.00
€ 2.50
€ 3.00
€ 3.50
Milk Cream Yoghurt Cheese Butter Ice Cream
Price Standard Deviation
PP
RR
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8. Procurement8. Procurement
0
500
1000
1500
2000
2500
1 2 3 4 5 6 7 8
Milk
PP QQ RR
Prices PP QQ RR Total1 31,533.30€ 22,445.10€ 50,627.70€ 104,606.10€ 2 41,011.65€ 11,796.30€ 30,362.85€ 83,170.80€ 3 -€ 5,163.75€ 22,123.80€ 27,287.55€ 4 23,776.20€ 20,104.20€ 26,667.90€ 70,548.30€ 5 27,654.75€ 16,501.05€ 31,189.05€ 75,344.85€ 6 27,195.75€ 7,825.95€ 23,684.40€ 58,706.10€ 7 29,926.80€ 13,517.55€ 20,471.40€ 63,915.75€ 8 9,019.35€ 19,117.35€ 9,799.65€ 37,936.35€
Total 190,117.80€ 116,471.25€ 214,926.75€
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8. Procurement8. Procurement
0
200
400
600
800
1000
1 2 3 4 5 6 7 8
Cream
PP QQ RR
Prices PP QQ RR Total1 54,484.92€ 63,637.81€ 50,304.86€ 168,427.59€ 2 50,304.86€ 28,035.23€ 27,458.67€ 105,798.76€ 3 -€ 19,963.39€ -€ 19,963.39€ 4 1,513.47€ 42,377.16€ 41,872.67€ 85,763.30€ 5 25,368.64€ 42,737.51€ 49,440.02€ 117,546.17€ 6 11,242.92€ 34,449.46€ 18,449.92€ 64,142.30€ 7 21,476.86€ 48,647.25€ 52,178.68€ 122,302.79€ 8 13,693.30€ 34,953.95€ 22,053.42€ 70,700.67€
Total 178,084.97€ 314,801.76€ 261,758.24€
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8. Procurement8. Procurement
0
500
1000
1500
2000
2500
1 2 3 4 5 6 7 8
Yoghurt
PP QQ RR
Prices PP QQ RR Total1 35,802.25€ 22,360.25€ 57,154.35€ 115,316.85€ 2 38,904.25€ 6,927.80€ 33,760.10€ 79,592.15€ 3 -€ 646.25€ -€ 646.25€ 4 19,129.00€ 14,243.35€ 23,652.75€ 57,025.10€ 5 34,277.10€ 15,665.10€ 24,324.85€ 74,267.05€ 6 46,685.10€ 13,157.65€ 15,173.95€ 75,016.70€ 7 38,852.55€ 18,818.80€ 22,954.80€ 80,626.15€ 8 30,580.55€ 16,621.55€ 18,482.75€ 65,684.85€
Total 244,230.80€ 108,440.75€ 195,503.55€
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8. Procurement8. Procurement
0
200
400
600
800
1000
1 2 3 4 5 6 7 8
Cheese
PP QQ RR
Prices PP QQ RR Total1 67,797.60€ 64,242.36€ 59,612.28€ 191,652.24€ 2 73,419.84€ 18,520.32€ 65,151.84€ 157,092.00€ 3 -€ 19,512.48€ -€ 19,512.48€ 4 -€ 63,911.64€ 34,229.52€ 98,141.16€ 5 -€ 56,801.16€ 27,449.76€ 84,250.92€ 6 42,166.80€ 51,013.56€ 48,285.12€ 141,465.48€ 7 17,114.76€ 63,746.28€ 69,947.28€ 150,808.32€ 8 13,063.44€ 26,622.96€ -€ 39,686.40€
Total 213,562.44€ 364,370.76€ 304,675.80€
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8. Procurement8. Procurement
0
200
400
600
800
1000
1200
1 2 3 4 5 6 7 8
Butter
PP QQ RR
Prices PP QQ RR Total1 45,269.28€ 52,993.80€ 53,832.12€ 152,095.20€ 2 59,880.00€ 27,784.32€ 33,712.44€ 121,376.76€ 3 -€ 15,389.16€ 20,958.00€ 36,347.16€ 4 -€ 38,263.32€ 48,143.52€ 86,406.84€ 5 23,293.32€ 42,634.56€ 21,676.56€ 87,604.44€ 6 17,484.96€ 26,227.44€ 40,299.24€ 84,011.64€ 7 22,993.92€ 49,341.12€ 43,233.36€ 115,568.40€ 8 15,568.80€ 37,365.12€ 13,772.40€ 66,706.32€
Total 184,490.28€ 289,998.84€ 275,627.64€
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8. Procurement8. Procurement
0
200
400
600
800
1000
1200
1400
1 2 3 4 5 6 7 8
Ice Cream
PP QQ RR
Prices PP QQ RR Total1 43,150.00€ 31,197.45€ 34,778.90€ 109,126.35€ 2 45,868.45€ 20,539.40€ 32,060.45€ 98,468.30€ 3 -€ 12,384.05€ -€ 12,384.05€ 4 31,758.40€ 24,768.10€ 13,117.60€ 69,644.10€ 5 48,543.75€ 29,644.05€ 30,765.95€ 108,953.75€ 6 54,023.80€ 19,288.05€ 20,021.60€ 93,333.45€ 7 40,302.10€ 28,608.45€ 14,627.85€ 83,538.40€ 8 13,247.05€ 16,267.55€ 30,334.45€ 59,849.05€
Total 276,893.55€ 182,697.10€ 175,706.80€
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9. Purchase Orders9. Purchase Orders
1 2 3 4 5 6 7 8PP 4 7 4 5 4 3 3QQ 2 2 1 3 3 2 3 2RR 4 2 2 3 3 2 4 3
012345678
Number of Purchase Orders
•Overall, company PP had higher number of P.O., followed by company RR.•Company QQ had less number of P.O. placed
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10. Purchase Orders Total Costs10. Purchase Orders Total Costs
• Company PP placed more P.O. followed by company RR• The quantities are about €400,000.00
€0€200,000€400,000€600,000€800,000
€1,000,000€1,200,000€1,400,000
1 5 9 3 7 1 5 9 3 7 1 5 9 3 7 1 5 9 3 7
1 2 3 4 5 6 7 8
Company PP
€0€200,000€400,000€600,000€800,000
€1,000,000€1,200,000€1,400,000
1 5 9 3 7 1 5 9 3 7 1 5 9 3 7 1 5 9 3 7
1 2 3 4 5 6 7 8
Company QQ
€0€200,000€400,000€600,000€800,000
€1,000,000€1,200,000€1,400,000
1 5 9 3 7 1 5 9 3 7 1 5 9 3 7 1 5 9 3 7
1 2 3 4 5 6 7 8
Company RR
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11. & 12. Total numbers and Total $ of Purchase 11. & 12. Total numbers and Total $ of Purchase OrdersOrders
€10,773,578.82 €6,275,131.32 €7,288,684.08€0
€2,000,000
€4,000,000
€6,000,000
€8,000,000
€10,000,000
€12,000,000
PP QQ RR
Total Cost of Purchase Orders
30 18 230
5
10
15
20
25
30
35
PP QQ RR
Number of P.O.
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13. Average Cost of P.O.13. Average Cost of P.O.
€61,917.12 €58,103.07 €52,816.55€48,000
€50,000
€52,000
€54,000
€56,000
€58,000
€60,000
€62,000
€64,000
PP QQ RR
Average Total Cost of P.O.
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14. Inventory Changes14. Inventory Changes
• Main Warehouse
• Company QQ had good inventory management in regards to level and replenishment frequency.
– Did not affect the number of days without of stock
Company PP Company QQ Company RR
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14. Inventory Changes14. Inventory Changes
• North
• All the companies had lower inventory levels of milk and Ice cream than the rest of products
Company PP Company QQ Company RR
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14. Inventory Changes14. Inventory Changes
• South
• Companies PP and QQ maintained lower inventory levels than company RR in all products.
Company PP Company QQ Company RR
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14. Inventory Changes14. Inventory Changes
• West
Company PP Company QQ Company RR
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15. Days Out of Stock15. Days Out of Stock
• Main Warehouse
• Company RR had the highest number of days without stock for all products, followed by company QQ.
– Company PP placed P.O. more frequently than the others.
Milk Cream Yoghurt Cheese Butter Ice CreamPP 12 11 9 31 6 7QQ 26 13 11 10 13 9RR 46 60 31 43 44 36
0
10
20
30
40
50
60
70
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15. Days Out of Stock15. Days Out of Stock
• North
Milk Cream Yoghurt Cheese Butter Ice CreamPP 29 12 11 8 22 17QQ 27 1 5 8 7 11RR 22 26 8 11 30 28
0
5
10
15
20
25
30
35
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15. Days Out of Stock15. Days Out of Stock
• South
Milk Cream Yoghurt Cheese Butter Ice CreamPP 2 32 26 15 25 6QQ 1 7 26 4 27 1RR 5 17 27 42 34 18
05
1015202530354045
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15. Days Out of Stock15. Days Out of Stock
• West
Milk Cream Yoghurt Cheese Butter Ice CreamPP 16 14 12 40 11 5QQ 3 2 1 23 3 11RR 13 4 40 41 58 59
0
10
20
30
40
50
60
70
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16. Warehouse Cost16. Warehouse Cost
End of Q8PP 5,350$ QQ -$ RR 4,650$
Count Max AvgPP 8 2289 1083.875QQ 0 0 0RR 15 1461 463.5294
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10
1 2 3 4 5 6 7 8
QQ PP RR
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17. Shipping Costs17. Shipping Costs
• This cost includes the transportation to the main warehouse and to each distribution center in the regions.
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18. Interest Expense18. Interest Expense
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19. & 20. Cash Flow and Days w/out Cash19. & 20. Cash Flow and Days w/out Cash
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21. Correlation21. CorrelationPrice and ProfitPrice and Profit
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21. Correlation21. CorrelationPrice and RevenuePrice and Revenue
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21. Correlation: Inventory vs. Revenue21. Correlation: Inventory vs. Revenue
-€2,000
€0
€2,000
€4,000
€6,000
€8,000
€10,000
0 500 1000 1500 2000
Milk
PP QQ RR Linear (PP) Linear (QQ) Linear (RR)
€0
€2,000
€4,000
€6,000
€8,000
€10,000
€12,000
0 200 400 600 800 1000
Cream
PP QQ RR Linear (PP) Linear (QQ) Linear (RR)
€0
€2,000
€4,000
€6,000
€8,000
€10,000
€12,000
0 500 1000 1500 2000 2500
Yoghurt
PP QQ RR Linear (PP) Linear (QQ) Linear (RR)
€0
€2,000
€4,000
€6,000
€8,000
€10,000
€12,000
0 200 400 600 800 1000
Cheese
PP QQ RR Linear (PP) Linear (QQ) Linear (RR)
€0
€2,000
€4,000
€6,000
€8,000
€10,000
€12,000
€14,000
0 200 400 600 800 1000 1200
Butter
PP QQ RR Linear (PP) Linear (QQ) Linear (RR)
€0
€2,000
€4,000
€6,000
€8,000
€10,000
0 200 400 600 800 1000 1200
Ice Cream
PP QQ RR Linear (PP) Linear (QQ) Linear (RR)
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21. Correlation: Inventory vs. Profit21. Correlation: Inventory vs. Profit
€0
€500
€1,000
€1,500
€2,000
€2,500
0 500 1000 1500 2000
Milk
PP QQ RR Linear (PP) Linear (QQ) Linear (RR)
€0€100€200
€300€400€500
€600€700€800
0 200 400 600 800 1000
Cream
PP QQ RR Linear (PP) Linear (QQ) Linear (RR)
-€500
€0
€500
€1,000
€1,500
€2,000
0 500 1000 1500 2000 2500
Yoghurt
PP QQ RR Linear (PP) Linear (QQ) Linear (RR)
€0€100€200€300€400€500€600€700€800€900
0 200 400 600 800 1000
Cheese
PP QQ RR Linear (PP) Linear (QQ) Linear (RR)
€0
€200
€400
€600
€800
€1,000
0 200 400 600 800 1000 1200
Butter
PP QQ RR Linear (PP) Linear (QQ) Linear (RR)
€0
€200
€400
€600
€800
€1,000
€1,200
0 200 400 600 800 1000 1200
Ice Cream
PP QQ RR Linear (PP) Linear (QQ) Linear (RR)
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21. Correlation21. Correlation
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22. Credit Rate22. Credit Rate
• For the size of the company, the highest credit rate given is A.
• During this simulation, no company was downgraded in credit rate
• Company PP had negative cash balance and they paid interest for the bank loan
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2323. . StrategiesStrategies
Company PP Company QQ Company RR
PricePrice Avg. market except cheese. Under cost.
High variability.
Avg Market. Except milk and yoghurt.
High variability
Avg Market. High variability
MarginMargin Low Margin6.4%
High Margin9.5%
Average Margin8.7%
RevenuesRevenues Average Sales High Sales High Sales
InventoryInventory High inventory levelsFast replenishment: did not run out of products
Low inventory levels without running out of
products
High inventory levelsSlow replenishment: ran
out of products
ProcurementProcurement 30 P.O. Placed €61,917.12 on average
18 P.O. Placed €58,103.07 on average
23 P.O. Placed €52,816.55 on average
Warehouse Warehouse CostsCosts
High warehouse expenses€ 5,350
Low warehouse expenses€ 0
High warehouse expenses€ 4,650
Shipping CostsShipping Costs High shipping cost€ 18,300
Average shipping cost€ 10,650
Average shipping cost€ 10,950
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24. & 25. Lessons Learned & Experiences24. & 25. Lessons Learned & Experiences
• The company must analyze demand and determine the best operation strategy– Push? Pull?: we chose to push the inventory to have more control on
transportation and warehouse costs.• Equilibrium between order frequency and total inventory
– Do not incur in excessive transportation or warehouse costs• Update the price in a timely manner to push for sales.• Oversee total inventory
– For planning purposes: the quantities in the P.O. depend on planned independent requirements.
– Do not exceed total capacity of the company (main and regional warehouses). In case this happens, push for sales reducing prices.
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26. Best Strategy26. Best Strategy
• Take in consideration the lead times, between purchasing a product and the actual delivery time.
• Monitor sales and adjust prices at all times. Therefore, the company can respond to the market requirements quickly.
• Identify the Region in which one specific product is having highest sales.
• Always keep track of total inventory to not exceed the warehouse limits and to not run out of stock.
• Communicate at all times with team members.