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After having a very successful performance and getting second place on the first Littlefield simulation game we knew what we needed to do to win the second simulation game. We were very eager to outperform our competition and we almost did so, but ended up in second place again with a cash balance of $2,660,393.

The second Littlefield simulation game focused on lead time and inventory management in an environment with a changing demand (“but the long-run average demand will not change over the product’s 268-day lifetime”). Therefore our strategy to win this game was controlling the Littlefield Lab’s system capacity and the inventory level with choosing a right contract as well as keeping the cash daily as much as possible. In other …show more content…

So we calculated the TIL (Target Inventory Level) – 821 kits and reorder quantity – 713 kits with Z, 98% probability of not stocking out during the period, according to periodic review system method for last 52 days. After making last order we reset the reorder quantity and reorder point both to ‘0’ not to make anymore orders.

When our group first started planning our strategy to win the second Littlefield simulation game, it was evident that the goal of the game was to maximize profits. We were competing against 18 other teams, but we knew with correct system capacity management and correct inventory management we could be the number one team. Even though we made correct decisions overall, we ended up in second place again with a cash balance of $2,660,393 and remaining inventory of 52 kits. Although we were a little disappointed again, we were very satisfied with what we have learned and the important operations management concepts we used such as capacity management and lead-time and inventory management throughout both of the Littlefield simulation games.

Littlefield Labs -
TRANSACTION HISTORY

|Day |Parameter |New Value |
|50 |station 1 machine count |3 |
|50 |Reorder point (kits) |50 |
|50 |Max WIP limit

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