How's my Luck now?

Reflections, views and descriptions during my stay at IIM Lucknow from July 2004 to March 2006

Name:
Location: India

Thursday, August 26, 2004

Distribution game

There was an interesting event conducted by the Operations Interest Group today, in which I and a friend took part. This was a Distribution Game, a software game developed by two professors of Cornell University to model and simulate a simple distribution chain. The aim is to manage the distribution chain for a set number of days in order to maximize profit.

Some details of the game:

Aim of the game: Maximize net profit from sale of goods (sales - cost of goods sold - order cost - inventory holding costs) at the end of a set number of days

Situation: You, the player, are a manufacturer of a particular kind of good. You have one supplier of raw material from whom you can order. There is one central warehouse where your finished products go after manufacturing. There are three retailers who get the products from the warehouse. Demand arises at the outlets of the three retailers in a random fashion, and this has to be met.

Opening position: The game opens with a fixed inventory in the warehouse and at each of the retailers. Revenue from sales is zero and raw material stock at the factory is zero.

Parameters of the game: Some things which are held constant throughout the game and which must be kept in mind to play the game effectively are:
  • Demand distribution - the demand figures are taken to follow one of two probability distributions: uniform or negative binomial
  • Transit times - fixed number of days it takes for goods to travel from factory to warehouse (15 days) and from the warehouse to the retailer (5 days)
  • Fixed order costs - for orders from supplier to warehouse and from warehouse to retailers
  • Inventory holding cost per unit - at the warehouse (less) and at the retailers' outlets (more)

Thus, for each day, you have to look the demand at each of the retailers' outlets, the inventories at the outlets and at the warehouse and accordingly place orders to the warehouse or to the supplier. The game automatically calculates the costs, sales and net profit for each day.

The game was played in the Computer Centre with 40 teams, each playing 5 rounds of 50 days each. It was very enjoyable trying to predict the demand (knowing its distribution) and then placing orders keeping in mind the transit times and the order and holding costs. We didn't do too well but enjoyed the whole thing.


5 Comments:

Anonymous Anonymous said...

Hi, Need to know about telecommunications story or update, so visit my website **Telecom** site/blog. It pretty much covers Telecommunications Updates related stuff.

Have a nice day.
Otai

11:59 AM  
Blogger oakleyses said...

nike free run, ugg boots, longchamp outlet, ray ban sunglasses, prada handbags, prada outlet, nike air max, polo ralph lauren, christian louboutin outlet, cheap oakley sunglasses, nike free, louis vuitton outlet, oakley sunglasses, louis vuitton outlet, nike air max, polo ralph lauren outlet online, gucci handbags, polo outlet, longchamp outlet, replica watches, ugg boots, louboutin pas cher, uggs on sale, burberry pas cher, louis vuitton, oakley sunglasses wholesale, longchamp outlet, sac longchamp pas cher, replica watches, chanel handbags, christian louboutin uk, nike roshe, air max, kate spade outlet, longchamp pas cher, nike outlet, christian louboutin shoes, oakley sunglasses, jordan shoes, louis vuitton, christian louboutin, tiffany and co, michael kors pas cher, louis vuitton outlet, oakley sunglasses, tiffany jewelry, tory burch outlet, ray ban sunglasses

7:34 PM  
Blogger oakleyses said...

polo lacoste, michael kors outlet online, nike air max uk, replica handbags, nike roshe run uk, uggs outlet, coach outlet, michael kors outlet online, sac vanessa bruno, oakley pas cher, ray ban pas cher, nike air max uk, lululemon canada, new balance, nike free uk, north face, nike air force, hogan outlet, kate spade, burberry outlet, mulberry uk, coach purses, true religion jeans, michael kors outlet online, abercrombie and fitch uk, michael kors outlet, hollister uk, converse pas cher, nike blazer pas cher, timberland pas cher, nike tn, true religion outlet, ralph lauren uk, michael kors, guess pas cher, sac hermes, michael kors outlet, ray ban uk, uggs outlet, michael kors outlet online, true religion outlet, coach outlet store online, michael kors, vans pas cher, true religion outlet, hollister pas cher, nike air max, michael kors outlet, north face uk

7:36 PM  
Blogger oakleyses said...

converse outlet, chi flat iron, ray ban, insanity workout, ferragamo shoes, mac cosmetics, herve leger, soccer jerseys, converse, louboutin, north face outlet, asics running shoes, jimmy choo outlet, gucci, ralph lauren, mont blanc pens, soccer shoes, celine handbags, nike trainers uk, beats by dre, vans, bottega veneta, babyliss, nike roshe run, hollister, ghd hair, wedding dresses, giuseppe zanotti outlet, abercrombie and fitch, hermes belt, nike air max, hollister clothing, iphone cases, north face outlet, vans outlet, nfl jerseys, hollister, mcm handbags, valentino shoes, p90x workout, new balance shoes, nike huaraches, timberland boots, instyler, lululemon, nike air max, longchamp uk, baseball bats, reebok outlet, oakley

7:39 PM  
Blogger oakleyses said...

canada goose outlet, canada goose jackets, pandora charms, moncler uk, moncler, barbour uk, moncler outlet, pandora uk, moncler, louis vuitton, juicy couture outlet, canada goose, canada goose, juicy couture outlet, pandora jewelry, canada goose outlet, louis vuitton, links of london, supra shoes, canada goose uk, moncler, ugg, toms shoes, ugg,ugg australia,ugg italia, canada goose, canada goose outlet, coach outlet, swarovski crystal, wedding dresses, pandora jewelry, barbour, louis vuitton, moncler, lancel, doudoune moncler, ugg pas cher, ugg,uggs,uggs canada, karen millen uk, marc jacobs, louis vuitton, ugg uk, louis vuitton, moncler outlet, replica watches, swarovski, hollister, thomas sabo, montre pas cher

7:41 PM  

Post a Comment

<< Home