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ERPSIM INTRODUCTIONAND ACTIVITY ONE

Spring2010 FundamentalsofBusinessInformationSystems

AsimulationgametolearnERPrelatedconcepts

Teamsof34 Operateamaketostockmueslimanufacturingplant

Interactwithsuppliersandcustomersbysending,receiving,andprocessingorders

Completethecashtocashcycle

UseSAPERPtoguideandexecutebusinessdecisionsensuringtheprofitabilityoftheircompany.

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Rolestobemanaged

Ultimatelyeachteamwillhavetohavetofulfillplanning,production,sales,accounting,andpurchasing functionspurchasingfunctions.

Activity1:focusisonplanningandexecutionrelatedtobasicstrategicmarketingsettingpricesandsellingproducts.

BeforeERPsystems

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Withanintegratedenterprisesystem

InteractingthroughSAPtransactions

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Yourteams

SAPLogins

Team Users Password

TeamA ext_A1toext_A4

TeamB ext_B1toext_B4

TeamC ext C1toext C4ea C e t_C to e t_C

TeamD ext_D1toext_D4

TeamE ext_E1toext_E4

Team F

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Tonight'sScenario

Yourteamhastakenoverafactorythatmakesandsells6flavorsofmuesli.

hasexistingbankloansandmoneyfrominvestors.has100,000boxesofeachmuesliflavorinfinishedgoodsinventorythatyoucansell.

hasrawmaterialsininventory(thatyouwontuseyet.)istakingoveroperationsatbeginningofquarter2ofcurrentfiscalyear.

willconductquarter2todaywitheachquarterrunning30daysandlastingapprox.40minutes(1.3minutes=1day)

Willincurnooverheadcosts(i.e.onlyCOGS).

Companies,Location,andCompetition

EachcompanyinadistinctlocationMayultimatelyfindthataffectssalesandproductd ddemand

Competitioniswithdomesticandforeigncompetitors(importers).

Demandchangesovertime,emulatingshiftingcustomer preferencesit is not randombutcustomerpreferences itisnotrandom butyoucanlearn(andinfluence)customerbehavior.

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Yourproductsandingredients

1.0KGCurrentlyyourcompanyproducesonly1KGboxesofestablishedflavors.Inthefutureyouwillbeabletochangeproductcompositionandboxsizes(.5KGbox).

Your6startingproducts

$$F011KGNutMuesli

$$F021KGBlueberryMuesli

$$F031KGStrawberryMuesli

$$F041KGRaisinMuesli

$$F051KGOriginalMuesli

$$ F06 1 KG Mixed Fruit Muesli$$F061KGMixedFruitMuesli

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ViewingBillofMaterialCS03

3SalesRegionsand3DistributionChannels

Channel10 Channel12 Channel14

Pricesaresetperdistributionchannel,andeachchannelhasdifferentpriceelasticity,paymentterms,andproductpreferences

Page18,19preferences.

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Tonight'sActivity

JobAid

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Howmuchofeachproductisinstock?

ChangePricesandsellavailablestock

Youneedtodecidewhatshouldbethepriceofyour6productsandadjustaccordingly.i i ll fi bili i i lMaximizeoverallprofitability.Maximizesalesrevenue.

Challenge:Don'tselltoosoon/toolow.

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Howmuchdiditcosttomakeeachproduct?

InActivityOneallteamshavethesameproductioncosts This will change incosts.Thiswillchangeinfutureactivities.

Settingsalesprice

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Monitoringsales

HowmuchdidIsell?WhenwillIbepaid?

ZVA05

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ZVC2

ZMARKET

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Whatismycompany'scurrentfinancialposition?

ImportantSimulationItem

/nMultiplesessionsThisweekyouarenotbeingchargedcostfactors.Oncesimulatorsetup,oneteammembermust

enterteampasscodeduringsetup.(seehandout)

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YourMission

Copyrights

PresentationpreparedbyandcopyrightofDr.TonyPittarese,EastTennesseeStateUniversity,ComputerandInformationSciencesDept.(pittares@etsu.edu)

Podcastlecturerelatedtothispresentationavailablevia

Microsoft,Windows,Excel,Outlook,andPowerPointareregisteredtrademarksofMicrosoftCorporation.

IBM,DB2,DB2UniversalDatabase,Systemi,Systemi5,Systemp,Systemp5,Systemx,Systemz,Systemz10,Systemz9,z10,z9,iSeries,pSeries,xSeries,zSeries,eServer,z/VM,z/OS,i5/OS,S/390,OS/390,OS/400,AS/400,S/390ParallelEnterpriseServer,PowerVM,PowerArchitecture,POWER6+,POWER6,POWER5+,POWER5,POWER,OpenPower,PowerPC,BatchPipes,BladeCenter,SystemStorage,GPFS,HACMP,RETAIN,DB2Connect,RACF,Redbooks,OS/2,ParallelSysplex,MVS/ESA,AIX,IntelligentMiner,WebSphere,Netfinity,TivoliandInformixaretrademarksorregisteredtrademarksofIBMCorporation.

LinuxistheregisteredtrademarkofLinus Torvalds intheU.S.andothercountries.

OracleisaregisteredtrademarkofOracleCorporation.

HTML,XML,XHTMLandW3CaretrademarksorregisteredtrademarksofW3C,WorldWideWebConsortium,MassachusettsInstituteofTechnology.

ETSUiTunesU.

JavaisaregisteredtrademarkofSunMicrosystems,Inc.

JavaScriptisaregisteredtrademarkofSunMicrosystems,Inc.,usedunderlicensefortechnologyinventedandimplementedby Netscape.

SAP,R/3,SAPNetWeaver,Duet,PartnerEdge,ByDesign,SAPBusinessByDesign,andotherSAPproductsandservicesmentionedhereinaswellastheirrespectivelogosaretrademarksorregisteredtrademarksofSAPAGinGermanyandothercountries.

BusinessObjectsandtheBusinessObjectslogo,BusinessObjects,CrystalReports,CrystalDecisions,WebIntelligence,Xcelsius,andotherBusinessObjectsproductsandservicesmentionedhereinaswellastheirrespectivelogosaretrademarksorregisteredtrademarksofBusinessObjectsS.A.intheUnitedStatesandinothercountries.BusinessObjectsisanSAPcompany.

ERPsim isaregisteredcopyrightofERPsim Labs,HECMontreal.

Otherproductsmentionedinthispresentationaretrademarksoftheirrespectiveowners.