1.

Attached you will find a phone book and instructions specific to your work group.

• Any clients or suppliers you may have are listed in the phone book.
• You will have to get an order from a client before you can decide what quantities
you need to order from suppliers.
• There may be long delays before you get a first order, and before you make your
final sale and the end of your simulation.
• You can rest or work on other things during these delays, but be rapid and accurate
in dealing with individual transactions.
• Although you may have several enquiries from one or several parties, there will be
no repeated transactions.

2. Each work group simulates one business in the value chain.

• Follow the instructions. Do NOT decorate the simulation with discounts, corruption
or whatever. You may think that is more realistic. You need to learn the general idea
before you can deal with complications. Also, perhaps you need to have experience
of the real world before you can decide what is more realistic.
• There is an old adage: you must learn how to obey (i.e., follow instructions) before
you can learn how to command.
• All transactions are in units and $US
• A domestic bank provides a generous line of credit based on the orders each
business receives, so your business can afford to purchase all the materials, parts
and transport required.

3. Organize the work group as you wish. Probably the main roles will be:
• Bookkeeper who records all the transactions: item exchanged for what price
with which business in which country. Super important for your later work .
The basic bookkeeping equation: Price = Costs + Value added
• Communicator
• Purchaser (works through communicator)
• Sales person (works through communicator)
• Operations manager (rolls die, decides on purchasing needs, etc.)

4. There are no labour costs in this simulation. Remember your basic bookkeeping
equation:

Price = Costs + Value added