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Littlefield Assignment Details, Game 1
Game number: 1 Objective is to learn how to manage: Capacity Changes you can make in the game:
1. Buy and sell machines? Yes 2. Change priority at station 2? Yes 3. Change lot size? No 4. Change pricing contract? No 5. Limit WIP? No 6. Change re-order point and quantity? No 7. Take out loan? (If yes, day available) No
Starting Conditions 1. Number of machines
At station 1 1 At station 2 1 At station 3 1 Machine cost at station 1 ($ 000) 100 Machine cost at station 2 ($ 000) 100 Machine cost at station 3 ($ 000) 100
2. Priority at station 2 FIFO 3. Kits/job (starting lot size = 1 lot / job) 60
Setup time at station 1, hours/lot 0 Setup time at station 2, hours/lot 0 Setup time at station 3, hours/lot 0
4. Number of pricing contracts 1 Contract 1: max. revenue per order, $ 400 Contract 1: quoted/max lead time, days 0.2/0.4 Contract 2: max. revenue per order, $ - Contract 2: quoted/max lead time, days - Contract 3: max. revenue per order, $ - Contract 3: quoted/max lead time, days -
5. WIP limit 50 6. Re-order point, kits 0
Re-order quantity, kits 120 Lead time for raw materials order, days 0 Cost of raw materials per kit, $ 0 Fixed order cost, $ 0 Holding Cost, % /yr.(excluding interest) 0
7. Interest rate gained on cash, % / yr 0 Debt initial cost (% of debt incurred) - Debt interest rate, % / yr -
Demand (if trend, see note below) Is there a trend in the Demand? Yes (See note on next page) (1)
Notes regarding demand: (1) Demand will increase roughly linearly from day 1 until the end of the game (day 270).
Good luck in the game! Here is a quick summary of the first game. Game 1: Learning objective: help you learn how to manage capacity as a function of demand.
Demand: demand will increase roughly linearly from day 0 to day 270. Possible moves: you will be able to buy machines at all stations, and change priority at station 2. Lead time: you must complete the job in 0.2 days or less to get full revenue of $400 per job. If you don’t get your jobs done within 0.4 days, you don’t get any money.
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