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Managing Customer Responsiveness at Littlefield Technologies

Dr. Julia Miyaoka (Ph.D Stanford University) co-developed this game scenario

Second game: Responsive (Miyaoka) game

Dr. Ahmad Syamil, CFPIM, CIRM, CSCP

APICS www.apics.org

Old Name: The American Production and Inventory Control Society New Name: The Association for Operations Management - Advancing Productivity, Innovation, and Competitive Success.

APICS offers four internationally recognized professional certification programs:


CPIM: Certified in Production and Inventory Management CFPIM: Certified Fellow in Production and Inventory Management = CPIM + extensive knowledge sharing with others through presenting, teaching, publishing, and other APICS educational activities. CIRM: Certified in Integrated Resource Management Beginning 2006: Certified Supply Chain Professional (CSCP) designation is designed for professionals interested in increasing their knowledge of supply chain management, those currently working in the field of supply chain management (SCM), and for those individuals working with enterprise resources planning (ERP) systems.

Background

Littlefield Technologies (LT) has developed another Digital Satellite System (DSS) product The new product is manufactured using the same process as the product in the previous assignment

Background

On day 0, the factory began operations with 3 stuffers, 1 tester, and 1 tuner, and a raw materials inventory of 9600 kits This left the factory with $1,000,000 in reserves This product has a 268 day lifespan and the demand continues to be random Demand will end abruptly at the end of this lifespan Management would like to charge higher prices for shorter lead times

Operations Policies at Littlefield

LT uses a Reorder Point/Order Quantity raw material purchase policy Raw kits are purchased as soon as the following is met:

The inventory of raw kits is less than the reorder point There are no orders for raw kits currently outstanding The factory has sufficient cash to purchase the reorder quantity

Operations Policies at Littlefield

Kits are purchased in multiples of 60 because orders arrive in batches of 60 A reliable suppliers delivers exactly 4 days after order is placed and paid for The current reorder point and reorder quantity can be changed by clicking on Edit Data on the Materials Buffer icon

Operations Policies at Littlefield

Customers pay a premium for fast lead times

Price 1: $750; quoted lead time = 7 days; maximum lead time = 14 days (default) Price 2: $1000; quoted lead time = 1 day; maximum lead time = 3 days Price 1: $1250; quoted lead time = 0.5 days; maximum lead time = 1 days

Assignment

The factory has been running for 50 simulated days, and management has recalled the high-powered operations team (you) to manage the capacity, scheduling, purchasing, lot sizing, and contract quotations to maximize the cash generated by the factory over its lifetime You will have control from day 50 to 218 One real hour translates into one simulation day

Assignment

At day 218, you lose control of the factory, and the simulation will quickly run another 50 days After day 268, you can check your status but the factory will no longer be running

Assignment

Your team should turn in one summary of what actions you took during the 1 week you had access to the factory, why you took those actions, and in retrospect whether you think you did the right thing Show analysis to justify your conclusions Your grade is partially based on performance but mostly based on summary The summary cannot exceed 3 pages in length. The game manual from Stanford University does not ask you to submit any appendices. However, please attach the overall standing, the transaction history, and the cash statement that you can get from the game website.