EOQ game - X i more and then walks back Once he/she decides...

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EOQ Race Purpose of the Game The purpose is to give students an intuitive understanding of the trade-offs when utilizing the economic order quantity (EOQ) concept in managing inventory. To do this, I replace monetary costs with time costs. This allows a race-type format to demonstrate the winner as the group with the lowest cost. Game Setup This game sets two groups of 4 people against each other in a race against time. Each group has a customer, manufacturer, logistics provider and a supplier. Blank index cards are used as the product. The customer approaches the manufacturers and places order. He stops placing order when the cumulated order reaches 100 units. The manufacturer knows that the total requirement of this customer is about 100 units. Using one hand, the manufacturer picks up from inventory, one-by-one, the cards and gives them to the customer. Whenever the manufacturer pleases, he/she reorders. To do so, he/she walks down to the supplier, gives the order for
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Unformatted text preview: X i more, and then walks back. Once he/she decides how much to order each time, he/she will NOT change the strategy. The Logistics person takes that X i amount from the supplier and begins placing the cards down at the customer end. For each order, logistics cannot place cards down in the same place. That is, they place cards down farther and farther away from the customer. Win and Reward As the customer wants index cards as quickly as the manufacturer can provide, the group that can satisfy the customer’s total demand with the minimum time wins. Every member in the winning group will get 2 bonus points in the final grade. Hint: To win this game, it is very important for the manufacturer to think clearly of how much he/she orders each time and how much inventory he/she carries. All the group members should help him/her develop a proper strategy. Customer Manufacturer Logistics Supplier Inventory...
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