Learning About Supply Chain Simulation Games
The Supply Chain Simulation Game can be played online or can be downloaded from the internet. This game allows multiple scenarios to be run through which simulate supply chain activities. The supply chain is an economic process that involves production, processing, gathering and storage of raw materials and eventually produces a product. Supply chain management is the optimization of these activities in order to maximize productivity, output and cost savings.
The supply chain simulation game is a strategic game with a supply chain example to study and analyze the effects of business decisions on production, processing, gathering and storage of raw materials. In the supply chain management game an organization considers sourcing or outsourcing certain products or elements from external to reduce operating costs. However, this practice can have negative impacts on the organization’s net profit margins. If the sourcing decision is based on the cost savings, it may cause the company to produce goods at a lower quality level or to use inferior raw materials resulting in lower quality goods. On the other hand, if the decision was based on the quality of the goods produced, it may result in lower production, processing, gathering and storage of raw materials resulting in lower production, processing, gathering and storage of goods and finally higher cost of production. So each of these actions will have an effect on the net profit of the organization.
As you can observe from the examples above, the outcome of each activity in the supply chain simulation game will have a direct impact on the net profit margin of the company. Hence a company that relies on outsourcing to save on production may incur additional production costs or lose some productive hours to the competition. Similarly, a company that takes on additional supply chain staff may encounter short term overheads or face temporary cash flow shortages. Supply chain management software such as the supply chain planning software developed by award winning companies allows companies to make realistic decisions about their operation in real time. This will help them address problems early before they cause financial and operational problems.
The ultimate aim of the supply chain simulation game is for players to remain competitive. To achieve this, you should ensure that all business activities in your supply chain are closely monitored. The simulation game enables you to simulate real-time activities such as receiving orders, fulfilling orders, transferring raw materials, producing goods and finally delivering goods. This will enable you to learn how real-time activities affect your sales, profit margin and ultimately your bottom line.
There are many companies that offer supply chain simulation games on the Internet. Beer game is one of them. This supply chain management game revolves around the idea of creating, shipping and managing beer business. Players can choose to either create a small, local microbrewery or establish a major brewing company in the nation.
One of the popular features of the beer supply chain simulation game is the inventory management. In the supply chain management simulation game, players will have to keep an eye on stock levels, inventory tracking and stock movement. This will allow players to ensure that they do not run out of the product on which they are making profits. Managing inventories and ensuring that you have enough supply for customer demands are among the most important aspects of supply chain management.
