Utilizing a Simulation Exercise to Illustrate Critical Inventory Management Concepts

Within the classroom it is often difficult to convey the complexities and intricacies that go into making sales and operations planning decisions. This article describes an in‐class simulation that allows students to gain hands‐on experience with the complexities in making forecasting, inventory, and supplier selection decisions as part of the sales and operations planning process. The activity may be run during one class period and is flexible enough to accommodate almost any class size. During the simulation, students may apply forecasting techniques, inventory management concepts, and supplier selection processes, while experiencing the effects of supply chain disruptions. This simulation is recommended to be used after forecasting, inventory management, and supplier selection topics have been discussed. An overview of the exercise and evidence of its effectiveness is provided.

Section: Introductionmentioning

confidence: 99%

A Simulation for Managing Complexity in Sales and Operations Planning Decisions

DuHadway

Dreyfus

2017

“…Student understanding is often still limited regarding the basics of when, with whom, why, and how information sharing and collaboration must take place in a supply chain. Even the well‐known beer game that shows basic supply chain mechanics does not take into account the fundamental need for collaboration, especially in more complex supply chain structures (Umble & Umble, ).…”

Section: Introductionmentioning

confidence: 99%

Sink or Swim: Learning by Doing in a Supply Chain Integration Activity*

Harnowo

Calhoun

Monteiro

2016

Studies show that supply chain integration (SCI) is important to organizations. This article describes an activity that places students in the middle of an SCI scenario. The highly interactive hands‐on simulation requires only 50 to 60 minutes of classroom time, may be used with 18 to about 36 students, and involves minimal instructor preparation. Through the activity, students learn the basics of SCI and then analyze an SCI event to better appreciate the need for collaboration and information sharing. In courses that address supply chain management, instructors can use the activity early in the semester to introduce students to the complexities of supply chain networks. Alternatively, instructors may use the simulation later to provoke a more nuanced discussion.

“…The use of spreadsheet modeling to teach management science and inventory management has been used and called for by operations management scholars and teachers for more than three decades (Cobb, ; Grossman, ; Silver, ; Umble & Umble, ; Winston, ). The exchange curve concept applied to inventory management has been proven effective in practice (Gardner, 1980, ; Gardner & Dannenberg, ).…”

Section: Introduction and Literature Reviewmentioning

confidence: 99%

Using Spreadsheet Modeling to Teach Exchange Curves (Optimal Policy Curves) in Inventory Management

Strakos

2016

Inventory management is widely researched and the topic is taught in business programs across the spectrum of operations and supply chain management. However, the concepts are notoriously difficult for students to practice once they finish school and become managers responsible for inventory control. This article explains the structure and details of an inventory management class module designed to bridge the gap between learning inventory management theory and applying the learning to practice. Through an active learning exercise, groups of logistics management graduate students in two sections of an introductory inventory management class (in‐residence and online) are taught the exchange curve concept, introduced to its use in practice, and given a tool for implementing this learning in a variety of practical scenarios. The exercise is valuable as it is well suited for students with a limited math background because it allows the exchange curve concept to be taught and demonstrated without presenting complicated mathematics. A three‐tiered assessment of the exercise reveals its effectiveness in meeting the goals of providing an engaging and interesting use of learning time and giving the students an in‐depth practical understanding of the exchange curve concept. The exercise is designed to be equally useful for application in an undergraduate class.