Record Sheet, Year 1

Team Number: ________ Name(s): ______________________________

As you make each decision, jot down a brief record of your reasons for the choices you made each year.
Please submit these record sheets to your instructor after completing the simulation. Thank you!

Design Room: Which options did you choose this year?

Option Chosen? Rationale for Selection
1.Upgraded Communication Y/N
2. Exterior Y/N
3. Stylish Y/N
4. Storage Capacity Y The standard deviation for storage capacity and Stylish options is lesser
than other options. Also, the average demand for both the models is
decreasing in other options.
Among these two options, although profit for Stylish option is more, but
the cost incurred in Storage Capacity is lesser. Hence, I chose Storage
Capacity as an option.

Forecast Room: What was your forecast for each model, and how did you derive that forecast?
Model Fcst Rationale for Forecast
Model A 62k With the given parameter - I found out the Economic Order Quantity (EOQ) for Model A
which is 62k per month.
Model B 26k Similarly, for Model B, the EOQ is 26k per month.

Production Room: Which suppliers did you choose this year? Why or why not?
Supplier Chosen? Rationale for Selection
1. FarFarAway Y I chose FarFarAway for Model A, as the standard deviation for this model is low and
hence the demand is stable. So even if the lead time is 4 months, there will not be any
problem. The production capacity of this supplier is 60k units that can fulfil the
demand and the setup cost is lesser as compared to FarAway.
2. FarAway N -
3. PrettyClose Y I chose PrettyClose for Model B as the lead time is 0 months and the standard
deviation for this model is high – which means there can be fluctuations in the
demand.
4 VeryClose N -

How did you allocate production for the two models between your suppliers, and why?
Supplier Model A Model B Month Changes/Other decisions
Production Production Production
Started
1. FarFarAway 60 0 January No changes made
2. FarAway
3. PrettyClose 0 27 May Change made in June for Model B – increased
production from 27 to 34.
4 VeryClose

Did you issue a production change order this year? If so, why? If not, why not?
Yes, I issued a production change order this year. For supplier PrettyClose, I changed production quantity for Model
B from 27k units to 34k units as the demand for this model was increasing and there was not enough stock to fulfil
demand.

Boardroom Results: Did you receive a vote from the board member? What was your annual net profit?
Annual Net Profit: $44,492,800 (Profit Margin: 28.17%)
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 Board Member Vote? Comments?
Carla Y I think you have identified an important concept about the problems with
consensus forecasts. I will give you my board vote this year. Congratulations.
Ankit Y I think you are right in looking at the disagreement among forecasters, since wide
disagreement is often an indication of demand uncertainty. I will give you my
board vote this year. Congratulations.
Mia N I will not be able to give you my vote this year. I am not sure you have the best
production planning strategy yet. You should think about your choice of
suppliers, capacity allocation, and production flexibility.
Matheo Y You have my vote this year. You seem to have a good intuition about the
differences between Model A and Model B and where to allocate production for
each model based on their differences.
Adele N You have done a good job this year, but I will not be able to give you my vote for
now. My suggestion is to think more about when to overproduce and when to
underproduce relative to demand.

Other comments:
We hope that our feedback will help you as you plan your production for the next year. Please keep in mind that
there often is no one right answer to success and that it is often impossible to satisfy all of us at the same time.

Overall, you have done a fine job, considering that this is your first year on the job. We look forward to observing
your performance next year.

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 Record Sheet, Year 2

As you make each decision, jot down a brief record of your reasons for the choices you made each year.

Design Room: Which options did you choose this year?

Option Chosen? Rationale for Selection
Y Impact per unit is more in using these two options than choosing any other.
1. Stylish The cost has not increased much and standard deviation has also reduced.
Y Impact per unit is more in using these two options than choosing any other.
2. Storage Capacity The cost has not increased much and standard deviation has also reduced.
3. Extended Battery N
4. Durability N

Forecast Room: What was your forecast for each model, and how did you derive that forecast?
Model Fcst Rationale for Forecast
Model A 57k With the given parameters such as unit cost, unit price, Markdown liquidation price, monthly
holding cost, standard deviation and average demand - I found out the Economic Order
Quantity (EOQ) for Model A which is 57k per month.
Model B 31k Similarly, for Model B, the EOQ is 31k per month.

Production Room: Which suppliers did you choose this year? Why or why not?
Supplier Chosen? Rationale for Selection
1. FarFarAway Y The standard deviation for model A is low and hence the demand is stable. So hence, I
chose FarFarAway as the supplier for this Model. The production capacity of this
supplier is 60k units that can fulfil the demand, the setup cost is lesser as compared to
FarAway,
2. FarAway N
3. PrettyClose Y I chose PrettyClose for Model B as the lead time is 0 months and the standard
deviation for this model is high – which means there can be high fluctuations in its
demand. Hence we can change the production quantity with 0 lead time easily.
4 VeryClose N

How did you allocate production for the two models between your suppliers, and why?
Supplier Model A Model B Month Changes/Other decisions
Production Production Production
Started
1. FarFarAway 57 0 January Changed to 60k units in April for Model A
2. FarAway - -
3. PrettyClose 0 31 May Changed to 24k units in May for Model B and added
9k units’ quantity for Model A
4 VeryClose - -

Did you issue a production change order this year? If so, why? If not, why not?
Yes, I issued a production change order this year. There was a increase in Model A’s demand, and decrease in
Model B’s demand.

Boardroom Results: Did you receive a vote from the board member? What was your annual net profit?
Annual Net Profit: $ 46,789,800 (Gross Margin: 28.82%)

Board Member Vote? Comments?

Carla Y You get my vote. Congratulations. For the second year in a row, I think you have
been doing a great job evaluating options based on more than the consensus
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 forecast.
Ankit Y Congratulations. You get my vote. I think your choices in regards to which option
to choose are consistently well thought out. You seem to understand that the
options with high demand uncertainty make accurate demand forecasting
difficult.
Mia Y/N
Matheo Y/N
Adele Y/N

Other comments:

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 Record Sheet, Year 3

As you make each decision, jot down a brief record of your reasons for the choices you made each year.

Design Room: Which options did you choose this year?

Option Chose Rationale for Selection
n?
1. Extended Battery Y/N
2. Durability Y/N
3. Anti-Theft Y/N
4. High Quality Audio Y / N

Forecast Room: What was your forecast for each model, and how did you derive that forecast?
Model Fcst Rationale for Forecast
Model A
Model B

Production Room: Which suppliers did you choose this year? Why or why not?
Supplier Chosen? Rationale for Selection
1. FarFarAway Y/N
2. FarAway Y/N
3. PrettyClose Y/N
4 VeryClose Y/N

How did you allocate production for the two models between your suppliers, and why?
Supplier Model A Model B Month Changes/Other decisions
Production Production Production
Started
1. FarFarAway
2. FarAway
3. PrettyClose
4 VeryClose

Did you issue a production change order this year? If so, why? If not, why not?

Boardroom Results: Did you receive a vote from the board member? What was your annual net profit?
Annual Net Profit: $

Board Member Vote? Comments?

Carla Y/N
Ankit Y/N
Mia Y/N
Matheo Y/N
Adele Y/N

Other comments:

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 Record Sheet, Year 4

As you make each decision, jot down a brief record of your reasons for the choices you made each year.

Design Room: Which options did you choose this year?

Option Chos Rationale for Selection
en?
1. Anti-Theft Y/N
2. High Quality Audio Y/N
3. Super-slim Y/N
4. Camera Quality Y/N

Forecast Room: What was your forecast for each model, and how did you derive that forecast?
Model Fcst Rationale for Forecast
Model A
Model B

Production Room: Which suppliers did you choose this year? Why or why not?
Supplier Chosen? Rationale for Selection
1. FarFarAway Y/N
2. FarAway Y/N
3. PrettyClose Y/N
4 VeryClose Y/N

How did you allocate production for the two models between your suppliers, and why?
Supplier Model A Model B Month Changes/Other decisions
Production Production Production
Started
1. FarFarAway
2. FarAway
3. PrettyClose
4 VeryClose

Did you issue a production change order this year? If so, why? If not, why not?

Boardroom Results: Did you receive a vote from the board member? What was your annual net profit?
Annual Net Profit: $

Board Member Vote? Comments?

Carla Y/N
Ankit Y/N
Mia Y/N
Matheo Y/N
Adele Y/N

Other comments:

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