2024 – Module 1 Case SUPPLY CHAIN THEORY Virtual Word Task Assignment Ordering Kentucky Hooch Brew To You From Danny Wilco

Module 1 – Case

SUPPLY CHAIN THEORY

Virtual Word Task Assignment: Ordering Kentucky Hooch Brew

To: You

From: Danny Wilco <dwilco@ebbd.com>

Subject: Re: Ordering product for EBBD from the Kentucky Hooch and Beer Company

Now that you have become familiar with EBBD and how we do things here, it is time to put you to work. We have been informed that KHBC is going to begin a new promo and advertising campaign during the next month that will put Kentucky Swamp Brew in the mind of every college student in the Midwest. We currently supply this beer to most of our retail customers. And we think we can expect an increase in orders from them in a few weeks when the ad campaign hits.

If this happens, and there is no reason to believe that it won’t, given the habits of college students, then we need to carefully consider how much we want to order from the KHBC brewery. We expect you to do the ordering for this product over the next 20 to 25 weeks, before, during, and after the KHBC ad campaign for Kentucky Swamp Brew.

At the end of this period, we want you to give us a report on what happened. We are interested in knowing how our retailers responded with their orders, what we did in response, i.e. how much we ordered, and what kind of backlogs there were, if any, in the order levels for the retailers, and us. And finally, what did our inventory and stocking levels look like? Did we overstock?

Let me know if you have any questions.

~DW, VP LogOps.

Learning Wizard: Learning Assignment & Assistance

Running the simulation: Go the simulation at http://forio.com/simulate/jelson/excellentbeerdistrib

You should have already experimented with this simulation as indicated on the Background page.

1. Read the scenario on Page 1 and go to Page 2. On Page 2, choose the KHBC Ad Campaign Scenario-2. Based on the weekly orders from your Retail Customers, you need to determine the weekly amount to order from KHBC. Enter the order and Advance (1 week). You can review the running status of orders and inventory in the table provided. Your goal is to minimize your backlog and your Retail Customers backlog, as well keep your inventories at a minimum. And avoid the Bull-whip effect. You may want to experiment a bit with your ordering strategy.

During the simulation (the one that you are going to use in your report), you should keep track of the highest levels of Customer Backlogs, EBBD Order Backlog, and levels of EBBD inventory.

2. When the simulation run has ended, copy the data from the Graph to Excel.

a. First, download this Excel file. EBBD-Case 1 Results Graph. Note: You should be sure to watch the two videos in YouTube that are provided on the Background page.

b. How To COPY DATA from the Simulation. After running the simulation, while you are in the simulation, select the Graph tab. Then with the mouse right-click on the graph and select copy data. Then paste it into the Excel Worksheet (put the cursor in the designated cell, and do a paste), and save it . You will see that the Graph is done for you automatically. You will also see a copy of the graph from the Background Reading by Padmanabhan, H.L.L and Whang, S. (1997), The Bullwhip Effect In Supply Chains; Sloan Management Review,v38. Note there is a 2nd tab that shows additional data such as Backlog Levles and Inventory Levels.

Assignment, Part 1: Analyze the data you saved in the Excel file. Write your report about the situation and explain the results, including the levels of order backlogs and EBBD inventory. Also explain your ordering strategy and logic.

Assignment Part 2: After you have completed your report to Management at EBBD, you need to add a section to articulate your learning and knowledge gained. You should identify the causes of the Bull-whip Effect. Discuss your results and how they compare with the historical Bull Whip affect. Compare your graph of your decisions to the graph of the historical bull whip. Explain your strategy and how you determined it. Explain why your results are the same or different from the historical bull whip results. Were you able to avoid the Bull-whip Effect? Why or Why not?

Upload the Report to Case 1. Upload the Excel file with the data and graph to Additional Files in Module 1.

Assignment Expectations

The report should thoroughly address these aspects in depth and breadth; be sure to use Headings to label both parts, as Part 1 and Part 2.

Part 1: Report to your boss, Danny Wilco (be sure to write this part as a report to Wilco.)

· Background: elucidate the current situation and context – tell about the campaign and what it was supposed to do and why you were assigned.

· Strategy: articulate the details of your strategy for ordering and avoiding the bull whip effect; explain how you developed your strategy, e.g. why you are ordering the specific amounts. What is the logic?

· Results: explain your results.

o What happened in terms of the Customer Order Backlog, EBBD order backlog, and EBBD inventory levels?

o What was your ordering pattern as shown in the Excel file

o Show data in the form of graphs and tables.

o Provide clear references to the data.

· Conclusions: explain your conclusions to your boss about the success of the campaign at EBBD.

Part 2: Explain what you learned about the Bull-whip Effect (write this part to your professor.)

· What are the causes of the Bull-whip Effect?

· Comparison to historical bull whip:

o include bull whip graphs.

o Articulate the analysis of the difference between your performance and the historical performance.

o Elucidate how your ordering strategy caused your ordering performance in comparison to the historical

o Did you avoid the bull-whip? why or why not?

Module 1 – SLP

SUPPLY CHAIN THEORY

Overview of the Session Long Project (SLP)

This Session Long Project is about the Supply Chain. It is divided into 5 assignments just like all other SLPs at TUI. Each assignment focuses on a different aspect of the Supply Chain: SLP1 is focusing on a specific product, the producer of that product, and the key competitors in that industry as well as the suppliers and customers of the target company. SLP2 extends the Supply Chain discussed in SLP1 into what is known as the Extended Enterprise Supply Chain, which explodes the supplier channels all the way back to the Raw Materials and those industries which provide the raw materials. And it explodes the Customers frontwards all the way to the Retail and consumer. SLP3 then looks at this EESC and identifies the transportation methods used and where the three modes of water, rail, and road are key aspects. SLP4 then explores the EESC to identify the issues with the environment and sustainability. The last SLP looks at the whole infrastructure of the U.S. including the transportation network, energy, and communications and discusses the state of the infrastructure and possible solutions for its improvement.

Assignment 1 – the Primary Supply Chain

Want to review about how to Research and Write Academic Papers?

This SLP, like most other SLPs in TUI courses, requires research and writing academic papers. You need to know how to use and cite references correctly. You learned how to do this ETH501.

But just in case you need a refresher, here are two links to help you.

TUI’s Well Written Paper

Purdue’s Online Writing Library (OWL)

Read the resources for SLP1 in the Background page.

For this first SLP you will choose a product and a company that you will use throughout all of the SLPs.

1. Choose a consumer product – one of these:

o Barbeque grill,

o leather jacket,

o baby stroller,

o potato chips,

o hockey stick, or

o concrete block.

2. Choose a company that produces this product in the USA (materials may come from abroad). You will research this product, company and the industry and the related Supply Chain.

You can go to several websites to find out how the product is made and what the corresponding materials are that are needed to produce it:

www.madehow.com, and http://en.wikipedia.org/wiki/Main_Page are two possible websites. There are others if you search for them.

Once you have chosen a product, you can search for a company that produces this product. Then you can research this company and the specific brand. Search the company’s website. If it is a publicly held company you can find its 10k report for good information. And also search ProQuest for articles about this company.

What is the size of the market for this general product, e.g. how many of these are sold or the total sales of these per year at the retail level?

What is the brand of the product and the company you are focusing on and what is its market share for this product? What are the locations of the company in the US?

3. Then research the competition for this product

What are 3 – 5 competitors of this company and their market share for their brands?

4. Now research the supply chain:

Upstream Supply Chain. What are the key supplies and materials needed to produce this product? Include not only the materials that go into the product, but also any packaging that is needed. Identify as many of the actual supplier companies as you can and where they are located in the U.S.

Downstream Supply Chain. What are the customers of this company/industry? Do they sell to distributors, wholesalers, retailers? Identify as many customers as you can and where they are located in the U.S.

Generate a diagram of this Supply Chain including the specific company/industry and showing the suppliers and customers.

Session Long Project

Choose a product from the list and find a company that produces this product in the USA. Research this company and this product. Identify the size of the market. Identify the

SLP Assignment Expectations

The paper should include:major locations of the company. Identify key competitors in the industry. Identify key components, materials and packaging needed to produce this product. Identify key upstream and downstream aspects of the supply chain and locations of suppliers and customers. Discuss this supply chain. Generate a diagram of the SC.

· Background: review and discuss the product, company, and industry

· Diagram: Include a diagram of the Supply Chain

· Industry Competitors: Identify the competitors to the target company and the competing brands.

· Supply Chain Discussion: Discuss key upstream (supplies/suppliers) and downstream (customers) aspects of the SC and locations of each.

· Clarity and Organization: The paper should be well organized and clearly discuss the various topics and issues in depth and breadth.

· Use of references and citations: at least four (4) proper references should be used correctly, cited in the text, and listed in the references using an appropriate style; It is not necessary to use APA format, but it is suggested that this format be used or another format similar.

· Length: The paper should be three to four pages – the body of the paper excluding title page and references page.

NOTE: You will need to do independent research and find at least four appropriate references.