Supply Chain Game1

Supply Chain Game1 - MEMORANDUM TO: Professor Kostamis...

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MEMORANDUM TO : Professor Kostamis FROM : Team One (Derrick Belcher, Natalya Grauer, Tom Lilly, Shannon Kehl) DATE : November 10, 2008 RE : Supply Chain Game Write-Up: Part 1 Playing the Game: Team One’s Actions Looking at the demand for Calopeia, we decided that our reorder point needed to be 400. This number was above the median demand (of 42), so we believe that we would be able to meet demand for the majority of the game. We realized that we may not be able to meet all of demand throughout the two years; however we believed that we would be able to acquire a useful level of inventory when demand was below the median. Also realizing that we would not be able to meet all of demand even with inventory, we matched the reorder point with an order size of 200 because that is what the trucks could carry. At one point, we looked at increasing the order size and reorder point to match peak demand. However, this seemed to cut more into our profitability than increase it so we did not go with this. Just like in the video vault case, we realized that we
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This document was uploaded on 11/04/2011 for the course BUSI 560 at UNC.

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Supply Chain Game1 - MEMORANDUM TO: Professor Kostamis...

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