Seminar 6 The risk pooling game
Learning objectives: To analyse the inventory policy with different distribution systems.
Activities before the seminar 1. Install the program given in AG. 2. Read instructions to play the game (p.3-12). Activities in the seminar Play the game several times before writing report. Write and upload a report in Aula GlobalMoodle with a summary of conclusions of the game (1 page as a maximum). Some guidelines are provided to write the report (p.2).
Guidelines to write the report 1. What are the highest profits you were able to obtain in both systems centralized and decentralized? Centralized system Profit ________________ Decentralized system Profit ________________ 2. How many weeks did you need to achieve the above results? Number of weeks _________________________ 3. How many times you run the game before obtaining the above results’ Game rounds _____________________________ 3. Did you adopt a specific inventory policy or strategy to achieve the highest profits in both systems centralized and decentralized? 4. Did you change some initial option about inventory policy to obtain these results? If yes, please indicate what option you modified and why. 4. How do you explain numerically the profit differences of the two systems? 5. How do you manage the lead times in both systems? Do you take into account them in placing orders? 6. Which type of demand (random, strong negatively or positively correlated), do you suggest is better to adopt a decentralized system and a centralized system? 7. What do you think to have learned through this game?
One of the most important concepts in supply chain management is the concept of "risk pooling''. Recall that risk pooling involves using centralized inventory to take advantage of the fact that if a warehouse serves a variety of retailers, when demand is high at some of the retailers, there is a good chance that it will be low at