ERP Simulation Game Logistics Game

Last Update: July 13, 2021

LOGISTICS
INTRODUCTION

A Serious Game Powered by ERPsim

Compatible with SAP™ S/4HANA
for Learning
Enterprise Resource
Pierre-Majorique LÉGER Robert PELLERIN
Jacques ROBERT Bret WAGNER
Planning Concepts Gilbert BABIN

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Welcome to Your New Job!

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Your Company

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Dairy Wholesaler

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Your Products

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Cost, Initial Pricing, and Replenishment

MILK $$-T01 CREAM $$-T02 YOGHURT $$-T03 CHEESE $$-T04 BUTTER $$-T05 ICE CREAM $$-T06

Product cost €22.95 €72.07 €25.85 €82.68 €59.88 €43.15

Initial price €25.25 €79.78 €28.43 €90.95 €65.87 €47.47

Qty. received
950 300 700 350 400 300
every 5 days

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The Market Preferences
Each region has unique preferences
related to the products it wishes to Schleswig
Holstein

purchase from your company.

Mecklenbourg
Hamburg Western
Lower Saxony
Bremen
North
Berlin
Saxony Brandenbourg
Anhalt
North
Rhine-Westphalia

West Thuringia
Saxony

Hesse
Rhineland
Palatinate
South

Baden Bavaria
Wurttemberg

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One Single Price List
You will need to setup prices for your products.
The price for each product will be applied in Schleswig
Holstein
4 Mecklenbourg
all 3 regions. Lower Saxony
Stores Western
Hamburg

Bremen
North
Berlin

4 Saxony Brandenbourg
DC16 Stores Anhalt
North
Rhine-Westphalia

West Thuringia
Saxony

Hesse 4
Rhineland Stores
Palatinate

Saarland
South
Distribution Channel 16
(Retailers) Baden Bavaria
One single price list
Wurttemberg

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Game Design

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Logistics Game Design

North

West

South

DAIRY COOPERATIVE MAIN WAREHOUSE

( SUPPLIER )
REGIONAL
STORAGE LOCATIONS

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Transportation and Warehousing Costs
You will have to manage transportation and
warehousing costs in order to maximize profit.
€100
per regional transfer
North

West

DAIRY COOPERATIVE MAIN WAREHOUSE

WAREHOUSING COSTS South

Base Capacity (sum of all storage locations) 4 000 units
Extra daily fee for each additional 1 000 boxes €50

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Two Transportation Strategies
You must determine a logistics strategy in order to make your products
available for sales through your regional storage locations.

North

West

PUSH PULL
OR MAIN WAREHOUSE South

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A Push Logistics Strategy
A “Push” strategy specifies the quantity of each product to be
delivered to each location.
The defined quantity of each product will be shipped to each
location according to the delivery schedule, which defines the
delay between each shipment.
North

West

South

MAIN WAREHOUSE PUSH

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A Pull Logistics Strategy
A “Pull” strategy specifies the target quantity for each product
in each location.
The difference between the target quantity and the inventory
available in each location is calculated and shipped according to
the delivery schedule.
North

West

South

MAIN WAREHOUSE PULL

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 1 Planning Mode 1 double click on Price list 1 your <company code>* Shows aggregate daily sales by product
GUI step
2 delivery frequency 2 is 16 Shows the stock levels for all the

Game Layout
In Scheduling, enter your
3 Enter the amount of each
product you wish to send/
maintain in each region
4 5
Verify Distribution Channel
Select ALV Tree Control products in the main warehouse and Detailed Sales Report (ZVA05)
2 FIORI step the three regional storage locations
3 In Statement Version, enter
SIM1
Shows sales related info such as sales
revenue by region
4 Modify your prices GUI step
3 FIORI step

ZMB1B VK32
TRANSACTIONS

Stock Transfer Change Price List

Products Products
(Main Warehouse) (Storage Locations)
REPORTS

ZVC2 ZVA05 F.01

ZMB52
Summary Sales Detailed Sales Financial
Inventory Report
Report Report Statements

Logistics Process Sales Process

*To find your company code, refer to transaction ZORG (Organizational Structure) Logistics Sales Reports 1/2

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Rules and Additional Information

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Determining Company Value

Company =
Yearly Profit

Value Company Discount Rate

(Current Profit / Nb. Rounds Played) * 8

=
Market Risk Rate + Company Risk Rate
This formula is adapted from the standard Dividend Discount Model (DDM) for stock
valuation, assuming no growth and 100% dividend payout.

In this game, your company discount rate remains constant throughout the game. Therefore,
your company valuation is determined by profit.

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The Major Rules

1 No stock, no sale.

2 Customer preferences do not change throughout the same

game.

3 The company displaying the highest company valuation

at the end of the simulation wins the game.

4 You must behave ethically at all times.

The end of game inventory will be valued at cost price in

the final balance sheet. Therefore, you shouldn’t sell under
cost at any time during the game.

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 Elements of a Winning Strategy

Use the ERP Delays and costs are Explore different Team organization is
Use the
system ERP
efficiently Do not run
important elements Delays and
strategies and liquidity
learn Exploration
more important than
system efficiently ofout
the of
game
stock. from mistakesare important you
constraints think
and exploitation
No advanced elements of the game
orders - no stock,
competitor will
get the sale

Have fun!

d liquidity Lab © ERPsim

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Participant’s Job Aid
Logistics User: $_1 to $_9
Adapted for Fiori and for SAP GUI Logistics User: $_1 to $_9
Adapted for Fiori and for SAP GUI
with Fiori Visual Theme Activated

Introduction Game
with Fiori Visual Theme Activated

Introduction Game
Initial password: © ERPsim Lab, HEC Montréal
© ERPsim Lab, HEC Montréal Logistics Game ERPSIM
Logistics Game Initial password: ERPSIM Last Update: June 30, 2021
Last Update: June 30, 2021

PLAN STOCK TRANSFER MAINTAIN PRICES FINANCIAL STATEMENTS STOCK LEVELS SALES DATA

Stock Transfer (ZMB1B) Change Price List (VK32) Financial Statements (F.01) Inventory Report (ZMB52) Summary Sales Report (ZVC2)

1 Select between a Push or Pull

Planning Mode 1 Open the Prices folder and
double click on Price list 1 InyourCompany Code, enter
<company code>* Shows aggregate daily sales by product
GUI step
2 Indelivery
Scheduling, enter your
frequency 2 Verify
is 16
Distribution Channel
Select ALV Tree Control
Shows the stock levels for all the
products in the main warehouse and Detailed Sales Report (ZVA05)
2 FIORI step the three regional storage locations
3 Enter the amount of each
product you wish to send/ 3 In Statement Version, enter
SIM1
Shows sales related info such as sales
revenue by region
maintain in each region
4 Modify your prices GUI step
Milk Cream Yoghurt Cheese Butter Ice Cream
4 5 3 FIORI step
($$-T01) ($$-T02) ($$-T03) ($$-T04) ($$-T05) ($$-T06)
Starting Starting 300 units Starting 700 units Starting 350 units Starting Starting 300 units
950 units Inventory Inventory Inventory 400 units Inventory
Inventory Inventory

Unit Cost €22.95 Unit Cost €72.07 Unit Cost €25.85 Unit Cost €82.68 Unit Cost €59.88 Unit Cost €43.15

ZMB1B VK32
TRANSACTIONS

Stock Transfer Change Price List CUSTOMER S AUTOMATED INVENTORY REPLENISHMENT

Schleswig
Holstein
Mecklenbourg
UNITS
North
Western
'&5HWDLO6WRUHV PRODUCT CODE DESCRIPTION
Hamburg
HYHU\GD\V Lower Saxony

Payment Time 4 days

4
Bremen
$$-T01 Milk 950
Berlin
Approximate Market Stores
Products Products €12 000 per team/day $$-T02 Cream 300
Size Saxony Brandenbourg
North
(Main Warehouse) (Storage Locations) Rhine-Westphalia Anhalt
$$-T03 Yoghurt 700 West
SUPPLIER S $$-T04 Cheese 350
4
Saxony
Thuringia
Payment Time 5 days $$-T05 Butter 400 Stores Hesse
REPORTS

ZVC2 South
Rhineland
ZVA05 F.01 $$-T06 Ice Cream 300
ZMB52 Palatinate
Summary Sales Detailed Sales Financial TR ANSPORTATION FEES
Inventory Report
Report Report Statements :$5(+286,1*&2676 4
Purchasing Cost Stores
€1 000 Current Space (Units)
(from supplier to main warehouse) 4 000 Baden
(maximum capacity without additional fees)
Bavaria
Wurttemberg
Logistics Process Sales Process Main Warehouse to
€100
Regional Storage Locations Daily Cost per Additional 1 000 Units €50

7RÀQG\RXUFRPSDQ\FRGHUHIHUWRWUDQVDFWLRQ=25*2UJDQL]DWLRQDO6WUXFWXUH Logistics Sales Reports 1/2 2/2

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Participant’s Guide
PARTICIPANT’S

Logistics Dairy Game

powered by ERPsim
GUIDE
ERP Simulation Game
LOGISTICS

A Serious Game Powered by ERPsim

for Learning
Compatible with SAP™ S/4HANA

Enterprise Resource
Pierre-Majorique LÉGER Robert PELLERIN
Jacques ROBERT Bret WAGNER
Planning Concepts Gilbert BABIN

http://erpsim.hec.ca Lab Serious games to learn

enterprise systems and
© Léger et al. 2004-2020. ERPsim Lab, HEC Montréal
business analytics

Available at
https://erpsim.hec.ca/en/node/274

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 1
ROUND 1
Login Information

User : $_1 to $_9

Where $ is your team letter

Password: ERPSIM

Client will be provided by the

instructor

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Transaction ZORG: Organizational Structure

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 Check Stock Levels 1
Adapted for Fiori and for SAP GUI
$_1 to $_9 with Fiori Visual Theme Activated

l password: © ERPsim Lab, HEC Montréal

ERPSIM
Last Update: June 30, 2021
ROUND 1

STOCK LEVELS SALES DATA

Inventory Report (ZMB52) Summary Sales Report (ZVC2)

Shows aggregate daily sales by product

Shows the stock levels for all the
products in the main warehouse and Detailed Sales Report (ZVA05)
the three regional storage locations
Shows sales related info such as sales
revenue by region

VK32
Change Price List

Products
(Storage Locations)
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 Plan Logistics
Transfer Strategy 1
Adapted for Fiori and for SAP GUI
User: $_1 to $_9 with Fiori Visual Theme Activated

Logistics Game
Introduction Game Initial password: ERPSIM © ERPsim Lab, HEC Montréal
Last Update: June 30, 2021
ROUND 1

PLAN STOCK TRANSFER MAINTAIN PRICES FINANCIAL STATEMENTS STOCK LEVELS SALES DATA

Stock Transfer (ZMB1B) Change Price List (VK32) Financial Statements (F.01) Inventory Report (ZMB52) Summary Sales Report (ZVC2)

1 Select between a Push or Pull

Planning Mode
2 delivery frequency
In Scheduling, enter your
3 Enter the amount of each
product you wish to send/
maintain in each region
4 5
1 Open the Prices folder and
double click on Price list
2 is 16
Verify Distribution Channel
3 In Statement Version, enter
4 Modify your prices
1 In Company Code, enter
your <company code>* Shows aggregate daily sales by product
GUI step
Select ALV Tree Control
Shows the stock levels for all the
products in the main warehouse and Detailed Sales Report (ZVA05)
2 FIORI step the three regional storage locations
SIM1
Shows sales related info such as sales
revenue by region
GUI step
3 FIORI step

ZMB1B VK32
TRANSACTIONS

Stock Transfer Change Price List

Products Products
(Main Warehouse) (Storage Locations)
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 Logistics
Maintain Prices
Introduction Game
User:
for DC 16
Initial password:
$_1 to $_9
ERPSIM
Adapted for Fiori and for SAP GUI
with Fiori Visual Theme Activated
© ERPsim Lab, HEC Montréal
Last Update: June 30, 2021
1
ROUND 1

MAINTAIN PRICES FINANCIAL STATEMENTS STOCK LEVELS SALES DATA

Change Price List (VK32) Financial Statements (F.01) Inventory Report (ZMB52) Summary Sales Report (ZVC2)

1 Open the Prices folder and

double click on Price list
2 is 16
Verify Distribution Channel
3 In Statement Version, enter
1 In Company Code, enter
your <company code>* Shows aggregate daily sales by product
GUI step
Select ALV Tree Control
Shows the stock levels for all the
products in the main warehouse and Detailed Sales Report (ZVA05)
2 FIORI step the three regional storage locations
SIM1
Shows sales related info such as sales
revenue by region

4 Modify your prices GUI step

5 3 FIORI step

B1B VK32
ransfer Change Price List

ucts Products
rehouse) (Storage Locations)
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 Sales Reports 1
Adapted for Fiori and for SAP GUI
with Fiori Visual Theme Activated
© ERPsim Lab, HEC Montréal
Last Update: June 30, 2021
ROUND 1

SALES DATA

Summary Sales Report (ZVC2)

Shows aggregate daily sales by product

nd Detailed Sales Report (ZVA05)

ns
Shows sales related info such as sales
revenue by region

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 Financial Statements 1
Adapted for Fiori and for SAP GUI
User: $_1 to $_9 with Fiori Visual Theme Activated

ion Game Initial password: ERPSIM © ERPsim Lab, HEC Montréal

Last Update: June 30, 2021
ROUND 1

FINANCIAL STATEMENTS STOCK LEVELS SALES DATA

Financial Statements (F.01) Inventory Report (ZMB52) Summary Sales Report (ZVC2)

1 In Company Code, enter

your <company code>* Shows aggregate daily sales by product
GUI step Shows the stock levels for all the
Select ALV Tree Control products in the main warehouse and Detailed Sales Report (ZVA05)
2 FIORI step the three regional storage locations
Shows sales related info such as sales
In Statement Version, enter revenue by region
SIM1

GUI step
3 FIORI step

* To find your company code, refer to

transaction ZORG (Organizational Structure)

VK32
Change Price List

Products
(Storage Locations)
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Check Company Valuation

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 1
ROUND 1

Let’s play round 1:

10 virtual days
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Debriefing Round 1

1 What are your first impressions?

2 How was the communication

during Round 1?

3 What information was exchanged among

teammates?

4 Who took the decisions in your team?

5 Were you satisfied with the

organization in your team?

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 2
ROUND 2

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 2
ROUND 2

Let’s play round 2:

10 virtual days
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Debriefing Round 2

1 How was the communication during Round 2?

2 What information was exchanged among teammates?

3 Who took the decisions in your team?

4 Were you satisfied with the organization in your

team?

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 3
ROUND 3

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 3
ROUND 3

Let’s play round 3:

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Debriefing Round 3

1 What are your impressions of an ERP?

2 How were the decisions made?

3 Based on your experience, what is an enterprise

system?

4 How do you think an enterprise system could

transform an organization?

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Execute MRP

4
ROUND 4

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 4
ROUND 4

Let’s play round 4:

10 virtual days
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Final Debriefing

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ERP Simulation Game Logistics Game

Last Update: July 13, 2021

LOGISTICS
INTRODUCTION

A Serious Game Powered by ERPsim

Compatible with SAP™ S/4HANA
for Learning
Enterprise Resource
Pierre-Majorique LÉGER Robert PELLERIN
Jacques ROBERT Bret WAGNER
Planning Concepts Gilbert BABIN

Lab Serious games to learn

© ERPsim
enterprise Lab,and
systems HEC Montréal
business analytics