Operate a Logistics
Company (Case Study 2)
(Overview and 6 Rounds)
EGN 5621 Enterprise Systems Collaboration
Summer B, 2012
Learning Objectives
Gain the experience of running a logistics
company
 Learn to use process management as a
competitive edge.
 Learn to use the ERP system to support
business strategies
 Appreciate the concepts and benefits of
enterprise systems integration

Logistics Game
Each team consists of up to 4 members.
 Each team operates a logistics company
selling dairy products.
 Using standard reports, each team makes
business decisions in order to optimize the
profitability of its operations.

Dairy Products
Business Environment Design
Each company owns a main warehouse which
receives and stores products purchased from a
dairy cooperative.
Products Details
The Market’s Preferences
Each region has unique preferences related
to the products it wishes to purchase from
your company. Preferences change every
game.
One Price List in Distribution
Channel 16
You will need to set-up prices for your
products. The price for each product will be
applied to all 3 regions.
Transportation Fees
You will have to manage transportation fees with care in order
to maximize your company’s profits.
Cost :
1000 €
per PO
Cost : 100 € per
regional tranfer
Logistics Strategy
You must determine a logistics strategy in order
to make your products available for sales through
your regional storage location.
OR
A Push Logistics Strategy
A Push strategy specified the quantity of each
product to be delivered to each area and the
number of days between deliveries.
A Pull Logistics Strategy
A Pull strategy specifies the target quantity
for each product in each area and the
number of days between deliveries.
Rules of the Game
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Each round will last 10 days
(a bit more than one minute per day)
No initial inventory for each product.
End-of-round inventory is carried over to
the next round.
You may sell a product only if the stock is
available through your regional storage
location.
You are competing against other teams.
Your objective is to maximize profits.
Rules of the Game

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No initial inventory in warehouse and
regions. Before starting game, must do
planning for finished goods requirement
(MD61), run MRP (MD01), and convert
purchase requisitions to purchase orders
(ME59N).
Market expense is not required.
Depreciation is not considered.
Each purchase order costs € 1,000 for
delivery.
Each transportation between three
regions costs € 100.
Rules of the Game

Warehouse costs:
whenever the company’s total inventory
exceeds 4,000 boxes. The cost is 100 € per
day for each additional 100 boxes exceeding
4,000.
Market size: About € 6,000 per company
per day.
 Lead time from suppliers: 1 – 3 days
 Lead time to customers: 1 – 3 days

Major Business Activities
Plan for independent requirement for each
finished product (MD61)
 Run MRP (MD01)
 Covert purchase requisitions to purchase orders
(ME59N)
 Transfer stock (ZMB1B)
 Maintain prices for each products (VK32)
 Check reports
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Purchase order report (ZME2N)
Inventory report (ZMB52)
Summary sales report (ZVC2)
Sales report (ZVA05)
Financial statement (F.01)
Major Business Activities

Make sure that the regional warehouses
have the required stock needed to meet
demand while reducing the delivery,
purchase order numbers, and warehouse
cost.

To excel, each company must have a good
strategy; departments must coordinate
their efforts efficiently, respond to market
requirement/changes quickly, and use the
ERP system effectively.
Game layout
12 min
10 days
12 min
10 days
Round
1
Round
…
12 min
10 days
Round
6
Job Aids (1/2)
Job Aids (2/2)
Login information
Client will be provided
by the instructor
Login:
logistics_$#
Where $ is your team letter
And # is your number
Password: ERPSIM
You will have to change your
password the first time you enter
SAP Menu & Navigation
Top Menu: Extras / Settings / Display technical names
Logistics Game: Round 1
12 min
10 days
Participant’s job aid & Menu
Forecasting
First Screen
Second
Screen
Execute MRP
Convert purchase requisitions into
purchase orders
Track purchase orders
Logistics Transfer Planning
Stock in material overview
Maintain Prices for DC 16
16
Check sales summary report
Check financial statement
Logistics Game: Round 1
12 min
10 days
The Logistics Game: Round 1 (10
days)
Now start the
simulator for 10 days
Logistics Game: Round 2 - 6
12 min
10 days