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Sale Price of 1 Beer Bottle Rs.

100
Landed Price of 1 Beer Bottle to Retailer from Wholesaler Rs. 90
Landed Price of 1 Beer Bottle to Wholesaler from Distributor Rs. 80
Landed Price of 1 Beer Bottle to Distributor from Manufacturer Rs. 70
Manufacturing Cost Rs. 60

Thus, Gross Margin per Beer Bottle for each entity Rs. 10

Lead time to deliver to Retailer 1 day


Lead time to deliver to Wholesaler 1 day
Lead time to deliver to Distributor 1 day
Lead time to manufacture 1 day

Inventory Holding Cost of 1 Beer Bottle per day Rs. 1

Retailer, Wholesaler and Distributor can hold infinite stock


Manufacturing capacity is infinite
No entity can delibertely hold fulfillment if bottles are available in stock and if they have been already ordered
No entity can push more stock to the next downstream entity than the units ordered
Unfulfilled orders cannot be carried forward and fulfilled in subsequent days
An entity can communicate only at the trading table with its immediate upstream entity
No negotiation on price or quantity is allowed in the trading table
Seller can "request" the buyer to revise the quantity (not price) of bottles but the final decision will lie with the buyer.
At close of the game, entire stock held has to be disposed off at zero value
Sale is recorded by an entity when the stock moves out of its premise
An entity can sell only the ordered quantity for the day or the opening stock of the day, whichever is less.
No entity is closed on any day. Sale purchase happens in all days. There is no "dry day".
All entities sell at prices defined. No discount can be offered or no premium can be charged.

All entities start with an opening stock of 100 Beer Bottles


een already ordered

cision will lie with the buyer.

hichever is less.
Day Opening Stock Manufacturing
Units Unit Planned Units Produced Cost of Manufacture
Day 1 100 110 0 Rs. 0
Day 2 5 85 110 Rs. 6,600
Day 3 110 250 85 Rs. 5,100
Day 4 85 500 250 Rs. 15,000
Day 5 250 100 500 Rs. 30,000
Day 6 550 600 100 Rs. 6,000
Day 7 100 0 600 Rs. 36,000
Day 8 697 3 0 Rs. 0
Day 9 695 2 3 Rs. 180
Day 10 698 0 2 Rs. 120
Day 11 700 0 0 Rs. 0
Day 12 700 11000 0 Rs. 0
Day 13 0 0 11000 Rs. 660,000
Closing Day 11000 0 0 Rs. 0
Total 12,650 12,650 Rs. 759,000

Observations
Mean Std. Deviation
Units Planned
Closing Stock

Supply Chain Metrics

Inventory Carrying (Holding) Cost as a percentage of sale


Stock-out Cost as a percentage of sale
Obsolescence cost as a percentage of sale
Days of Inventory
Length of Supply Chain
Inventory Cost
Supply Chain Cost
Supply Chain Inefficiency Ratio
Supply Chain Cost excluding Stockout Cost
Supply Chain Working Capital Cost
Supply Chain Working Capital Productivity
Service Level
Orders Received Sale Closing Stock Holding Cost Cost of Lost Sale Obsolescence Cost
Units Unit Value Units Value Value Value
95 95 Rs. 6,650 5 Rs. 53 Rs. 0 0
80 5 Rs. 350 110 Rs. 58 Rs. 750 0
650 110 Rs. 7,700 85 Rs. 98 Rs. 5,400 0
1250 85 Rs. 5,950 250 Rs. 168 Rs. 11,650 0
200 200 Rs. 14,000 550 Rs. 400 Rs. 0 0
2500 550 Rs. 38,500 100 Rs. 325 Rs. 19,500 0
3 3 Rs. 210 697 Rs. 399 Rs. 0 0
2 2 Rs. 140 695 Rs. 696 Rs. 0 0
0 0 Rs. 0 698 Rs. 697 Rs. 0 0
0 0 Rs. 0 700 Rs. 699 Rs. 0 0
0 0 Rs. 0 700 Rs. 700 Rs. 0 0
11111 700 Rs. 49,000 0 Rs. 350 Rs. 104,110 0
0 0 Rs. 0 11000 Rs. 5,500 Rs. 0 0
0 0 Rs. 0 11000 Rs. 11,000 Rs. 0 Rs. 660,000
15,891 1750 Rs. 122,500 Rs. 21,140 Rs. 141,410 Rs. 660,000
Gross Profit

Rs. 898
Rs. -758
Rs. -4,398
Rs. -10,968
Rs. 1,600
Rs. -14,325
Rs. -369
Rs. -676
Rs. -697
Rs. -699
Rs. -700
Rs. -97,460
Rs. -5,500
Rs. -671,000
Rs. -805,050
Day Opening Stock Procurement Orders Received Sale
Units Units Ordered Units Received Units Units
Day 1 100 95 0 100 100
Day 2 0 80 95 350 0
Day 3 95 650 5 200 95
Day 4 5 1250 110 150 5
Day 5 110 200 85 200 110
Day 6 85 2500 200 300 85
Day 7 200 3 550 150 150
Day 8 600 2 3 80 80
Day 9 523 0 2 40 40
Day 10 485 0 0 75 75
Day 11 410 0 0 30 30
Day 12 380 11111 0 90 90
Day 13 290 0 700 0 0
Closing Day 990 0 0 0 0
Total 15,891 1,750 1,765 860

Observations
Mean Std. Deviation
Units Ordered
Closing Stock

Supply Chain Metrics

Inventory Carrying (Holding) Cost as a percentage of sale


Stock-out Cost as a percentage of sale
Obsolescence cost as a percentage of sale
Days of Inventory
Length of Supply Chain
Inventory Cost
Supply Chain Cost
Supply Chain Inefficiency Ratio
Supply Chain Cost excluding Stockout Cost
Supply Chain Working Capital Cost
Supply Chain Working Capital Productivity
Service Level
Sale Closing Stock Holding Cost Cost of Lost Sale Obsolescence Cost Gross Profit
Value Units Value Value Value
Rs. 8,000 0 Rs. 50 Rs. 0 0 Rs. 950
Rs. 0 95 Rs. 48 Rs. 3,500 0 Rs. -3,548
Rs. 7,600 5 Rs. 50 Rs. 1,050 0 Rs. -150
Rs. 400 110 Rs. 58 Rs. 1,450 0 Rs. -1,458
Rs. 8,800 85 Rs. 98 Rs. 900 0 Rs. 103
Rs. 6,800 200 Rs. 143 Rs. 2,150 0 Rs. -1,443
Rs. 12,000 600 Rs. 400 Rs. 0 0 Rs. 1,100
Rs. 6,400 523 Rs. 562 Rs. 0 0 Rs. 239
Rs. 3,200 485 Rs. 504 Rs. 0 0 Rs. -104
Rs. 6,000 410 Rs. 448 Rs. 0 0 Rs. 303
Rs. 2,400 380 Rs. 395 Rs. 0 0 Rs. -95
Rs. 7,200 290 Rs. 335 Rs. 0 0 Rs. 565
Rs. 0 990 Rs. 640 Rs. 0 0 Rs. -640
Rs. 0 990 Rs. 990 Rs. 0 Rs. 69,300 Rs. -70,290
Rs. 68,800 Rs. 4,718 Rs. 9,050 Rs. 69,300 Rs. -74,468
Date Opening Stock Procurement Orders Received Sale
Units Units Ordered Units Received Units Units
Day 1 100 100 0 100 100
Day 2 0 350 100 110 0
Day 3 100 200 0 80 80
Day 4 20 150 95 90 20
Day 5 95 200 5 100 95
Day 6 5 300 110 160 5
Day 7 110 150 85 180 110
Day 8 85 80 150 110 85
Day 9 150 40 80 140 140
Day 10 90 75 40 75 75
Day 11 55 30 75 50 50
Day 12 80 90 30 80 80
Day 13 30 0 90 30 30
Closing Day 90 0 0 0 0
TOTAL 1,765 860 1,305 870

Observations
Mean Std. Deviation
Units Ordered
Closing Stock

Supply Chain Metrics

Inventory Carrying (Holding) Cost as a percentage of sale


Stock-out Cost as a percentage of sale
Obsolescence cost as a percentage of sale
Days of Inventory
Length of Supply Chain
Inventory Cost
Supply Chain Cost
Supply Chain Inefficiency Ratio
Supply Chain Cost excluding Stockout Cost
Supply Chain Working Capital Cost
Supply Chain Working Capital Productivity
Service Level
Sale Closing Stock Holding Cost Cost of Lost Sale Obsolescence Cost Gross Profit
Value Units Value Value Value
Rs. 9,000 0 Rs. 50 Rs. 0 0 Rs. 950
Rs. 0 100 Rs. 50 Rs. 0 0 Rs. -50
Rs. 7,200 20 Rs. 60 Rs. 1,100 0 Rs. -360
Rs. 1,800 95 Rs. 58 Rs. 0 0 Rs. 143
Rs. 8,550 5 Rs. 50 Rs. 700 0 Rs. 200
Rs. 450 110 Rs. 58 Rs. 50 0 Rs. -58
Rs. 9,900 85 Rs. 98 Rs. 1,550 0 Rs. -548
Rs. 7,650 150 Rs. 118 Rs. 700 0 Rs. 33
Rs. 12,600 90 Rs. 120 Rs. 250 0 Rs. 1,030
Rs. 6,750 55 Rs. 73 Rs. 0 0 Rs. 678
Rs. 4,500 80 Rs. 68 Rs. 0 0 Rs. 433
Rs. 7,200 30 Rs. 55 Rs. 0 0 Rs. 745
Rs. 2,700 90 Rs. 60 Rs. 0 0 Rs. 240
Rs. 0 90 Rs. 90 Rs. 0 ₹ 7,200 Rs. -7,290
Rs. 78,300 Rs. 1,005 Rs. 4,350 Rs. 7,200 Rs. -3,855
Day Opening Stock Procurement Orders Received Sale
Units Units Ordered Units Received Units Units
Day 1 100 100 0 90 90
Day 2 10 110 100 101 10
Day 3 100 80 0 100 100
Day 4 0 90 80 110 0
Day 5 80 100 20 95 80
Day 6 20 160 95 100 20
Day 7 95 180 5 90 90
Day 8 10 110 110 100 10
Day 9 110 140 85 95 95
Day 10 100 75 140 110 100
Day 11 140 50 75 110 110
Day 12 105 80 50 100 100
Day 13 55 30 80 90 55
Closing Day 80 0 30 90 80
Total 1,305 870 1,381 940

Observations
Mean Std. Deviation
Units Ordered
Closing Stock

Supply Chain Metrics

Inventory Carrying (Holding) Cost as a percentage of sale


Stock-out Cost as a percentage of sale
Obsolescence cost as a percentage of sale
Days of Inventory
Length of Supply Chain
Inventory Cost
Supply Chain Cost
Supply Chain Inefficiency Ratio
Supply Chain Cost excluding Stockout Cost
Supply Chain Working Capital Cost
Supply Chain Working Capital Productivity
Service Level
Sale Closing Stock Holding Cost Cost of Lost Sale Obsolescence Cost Gross Profit
Value Units Value Value Value
Rs. 9,000 10 Rs. 55 Rs. 0 0 Rs. 845
Rs. 1,000 100 Rs. 55 Rs. 910 0 Rs. -865
Rs. 10,000 0 Rs. 50 Rs. 0 0 Rs. 950
Rs. 0 80 Rs. 40 Rs. 1,100 0 Rs. -1,140
Rs. 8,000 20 Rs. 50 Rs. 150 0 Rs. 600
Rs. 2,000 95 Rs. 58 Rs. 800 0 Rs. -658
Rs. 9,000 10 Rs. 53 Rs. 0 0 Rs. 848
Rs. 1,000 110 Rs. 60 Rs. 900 0 Rs. -860
Rs. 9,500 100 Rs. 105 Rs. 0 0 Rs. 845
Rs. 10,000 140 Rs. 120 Rs. 100 0 Rs. 780
Rs. 11,000 105 Rs. 123 Rs. 0 0 Rs. 978
Rs. 10,000 55 Rs. 80 Rs. 0 0 Rs. 920
Rs. 5,500 80 Rs. 68 Rs. 350 0 Rs. 133
Rs. 8,000 30 Rs. 55 Rs. 100 Rs. 2,700 Rs. -2,055
Rs. 94,000 Rs. 970 Rs. 4,410 Rs. 2,700 Rs. 1,320
Day Ordered Received Average order end of each cycle

Day 1 90 90 90
Day 2 101 10
Day 3 100 100
Day 4 110 0
Day 5 95 80 99.2
Day 6 100 20
Day 7 90 90
Day 8 100 10
Day 9 95 95
Day 10 110 100 99
Day 11 110 110
Day 12 100 100
Day 13 90 55
Day 14 90 80
1,381 940
Observations
Mean Std. Deviation
Units Ordered
Day Consumer Retailer Wholesaler Distributor Manufacturer
Day 1
Day 2
Day 3
Day 4
Day 5
Day 6
Day 7
Day 8
Day 9
Day 10
Day 11
Day 12
Day 13
Day 14

Plot order placed on each entity on a time graph


General Observations

Overall Supply Chain Metrics

Profit/ Loss for Supply Chain


Holding Cost for Supply Chain
Cost of Lost Sale for Supply Chain
Obsolescence Cost for Supply Chain
Sale of Supply Chain
Holding Cost as a percentage of Sale
Cost of Lost Sale as a percentage of Sale
Obsolescence Cost as a percentage of Sale
Inventory Cost of Supply Chain
Supply Chain Cost
Supply Chain Inefficiency Ratio
Supply Chain Cost excluding Stock-out Cost
Supply Chain Working Capital Cost
Supply Chain Working Capital Productivity
Service Level

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