The Cell Phone Retail Game High School and College Program

The Cell Phone Retail Game High School and College Program

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What is Supply Chain Management?

What is Supply Chain Management?
“Give the customer what they want, when they want it, how they want it, where they want it, and at a reasonable price. All while making a profit.” It is the management of a chain of supply*. *Module 1: What is Supply Chain Management Arizona State University W.P. Carey School of Business, Dept. Of Supply Chain Management

Supply Chain Example: Car
SOURCE MAKE RECYCLE DELIVER REUSE

Supply Chain Water Bottle Video
What is Supply Chain Management? This module introduces viewers to the field of supply chain management. It describes the complex supply chain of a simple product, a bottle of water. The video also illustrates the importance of supply chain managers and their skill sets in our modern global economy for both manufacturing and service industries. In defining supply chain management, the video also hopes to educate and inspire business students, young and old, about the opportunities available to those with supply chain management degrees. This is the first installment in Arizona State University's twelve-part introduction to supply chain management video series. ASU, the W. P. Carey School of Business, and the Supply Chain Management Department are proud and happy to share this video series with supply chain management departments, supply chain instructors, career specialists in high schools and universities, as well as industry leaders in an effort to inspire a new generation of supply chain management professionals across the country and around the world. ***NOTE FROM DESIGNER: THE ”WHAT IS SUPPLY CHAIN MANAGEMENT?” TITLE HAS AN INVISIBLE RECTANGE OVER IT THAT IS HYPERLINKED TO THE VIDEO Video URL:

College Career Paths to Think About!
S.T.E.M. Science Technology Engineering Math Supply Chain Source Make Deliver Reuse/Recycle The STEM focus on this activity is math intensive, and show the relevance of math in the cell phone industry Supply Chain Management requires skills in science, technology, engineering, and math!

Okay, time to get started…
The Cell Phone Retail Game

= We are going to source and sell cell phones Chips are cell phones
For this game all color phones are the same We will buy cell phones from suppliers and sell them in our retail store Retail price = $5 per phone = Explain to the students what product the chips represent.

Some Definitions Unit – Each phone you buy or sell
Revenue – Amount of money ($$) you make when you sell phones Inventory – Phones you have bought from suppliers Supplier – A maker of cell phones Demand – Number of phones that can be sold to customers Lead Time – The amount of time that elapses between when a process starts (order is placed) and when it is completed (delivered to customer)

Game Set Up 1 student at each supplier desk (3 students)
1 student at the retail store Teams of 3* players: formed from remaining students Team Roles: Accountant (pick random demand & fill out score sheet) Purchasing (fill out order forms & place/pick up cell phone orders) Sales (money handler, collect revenue, pay penalty at retail store) All teams write their names in the team score keeping area Games * Ideal team size is 3 players; teams of 1-2 will work to balance the classroom

Game Rules Each team starts with a budget of $100 and 5 phones in inventory Teams must fill out game score sheets completely Demand Each Round – Determined by deck of cards (Ace – 10) at retail store Penalty Each Round – 3 scenarios Cost of Excess Inventory – If your team has excess inventory at the end of a round, you will be charged a penalty of $1/unit Cost of Unmet Demand – If your team has unmet demand at the end of a round, you will draw a missed demand card and be charged a penalty for each unit of missed demand (Jack - $1, Queen - $2, King - $3, Joker - $4) No Penalty – If your team successfully fulfills the order with no excess inventory

Cell Phone Suppliers Supplier A Supplier B Supplier C Insource
Gotham City China Capacity = 10 units/week Capacity = 15 units/week Capacity = 30 units/week Price = $4/unit Price = $3/unit Price = $1/unit Lead Time = 0 weeks Lead Time = 1 week Lead Time = 2 weeks No Min Quantity Min Quantity = 10 This is the supplier “cheat sheet” that should be included in team Ziploc bags

Cell Phone Retail Store
Each team picks a weekly demand card (Ace – 10) Each team sells phones based on number of units of current week’s demand. Store pays team $5 for each sale Each team pays weekly penalty Excess Inventory: $1 per phone Unmet demand: Draw card for per unit penalty (Jack = $1, Queen = $2, King = $3, Joker = $4) $0: Fill perfect order

Compute Sales and Inventory Sell Phones & Pay Penalty
Game Flow Beginning Accounting Get Demand Source Phones Compute Sales and Inventory Sell Phones & Pay Penalty Compute Profit or Loss End Accounting PLEASE DO NOT MOVE AHEAD. TEAMS WILL STAY ON THE SAME WEEK UNTIL THE INSTRUCTOR SAYS TO MOVE TO THE NEXT WEEK!

Team Movements Each Round
Supplier Stations (choose 1 each round) Supplier? Quantity? 5. Fill Out Score Sheet Rows Do you have a penalty (ending inventory or missed demand)? 2. Fill Out Score Sheet Rows 1-7 4. Place & pay for orders; pick up finished orders 7. Finish Score Sheet Rows 14-19 3. Fill Out Order Form Start Accountant Purchasing Sales Stop 1. Pick Random Demand 6. Sell Phones, Assess & Pay Penalty* Retail Store *Sales to bring scoresheet to retail store; return demand card to retail store

Week 1 Practice Round We go through 1 practice round and fill out the score sheet together: All teams with works with Supplier B for the practice round Assume Supplier B has unlimited capacity for practice round Teams pick up demand cards (Ace – 10) from the Retail Store at the beginning of every week If unmet demand, teams pick up random penalty cards (Jack, Queen, King, Joker) from the Retail Store at the end of the round All teams share same demand and penalty for practice rounds

Team Scorecard (Week 1 Practice)
Step Description Calculation Hint Week 1 Week 2 Start Accounting 1 Starting Cash Balance Line 19 from previous week $100 $ Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store units Source Phones 3 Choose Supplier Team Chooses A, B or C 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice $ 6 Phones you choose to Order Team chooses 7 Total Order Cost Line 5 x Line 6 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 5 units 9 Units Delivered this week From Line 4 and Line 6 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 Start with $100 Start with 5 units

Step Description Calculation Hint Week 1 Week 2 Start Accounting 1 Starting Cash Balance Line 19 from previous week $100 $ Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store 7 units units Source Phones 3 Choose Supplier Team Chooses A, B or C 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice $ 6 Phones you choose to Order Team chooses 7 Total Order Cost Line 5 x Line 6 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 5 units 9 Units Delivered this week From Line 4 and Line 6 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 Pick demand card

Step Description Calculation Hint Week 1 Week 2 Start Accounting 1 Starting Cash Balance Line 19 from previous week $100 $ Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store 7 units units Source Phones 3 Choose Supplier Team Chooses A, B or C B 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice $ 6 Phones you choose to Order Team chooses 7 Total Order Cost Line 5 x Line 6 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 5 units 9 Units Delivered this week From Line 4 and Line 6 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 Supplier B Available week 2

Step Description Calculation Hint Week 1 Week 2 Start Accounting 1 Starting Cash Balance Line 19 from previous week $100 $ Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store 7 units units Source Phones 3 Choose Supplier Team Chooses A, B or C B 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice $3 6 Phones you choose to Order Team chooses 7 Total Order Cost Line 5 x Line 6 $ Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 5 units 9 Units Delivered this week From Line 4 and Line 6 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 Cost per unit is $3 Supplier B

Step Description Calculation Hint Week 1 Week 2 Start Accounting 1 Starting Cash Balance Line 19 from previous week $100 $ Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store 7 units units Source Phones 3 Choose Supplier Team Chooses A, B or C B 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice $3 6 Phones you choose to Order Team chooses 5 units 7 Total Order Cost Line 5 x Line 6 $ Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 9 Units Delivered this week From Line 4 and Line 6 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 Choose 5 phones

Step Description Calculation Hint Week 1 Week 2 Start Accounting 1 Starting Cash Balance Line 19 from previous week $100 $ Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store 7 units units Source Phones 3 Choose Supplier Team Chooses A, B or C B 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice $3 6 Phones you choose to Order Team chooses 5 units 7 Total Order Cost Line 5 x Line 6 $15 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 9 Units Delivered this week From Line 4 and Line 6 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 Total Order Cost is 5 x $3 = $15

Step Description Calculation Hint Week 1 Week 2 Start Accounting 1 Starting Cash Balance Line 19 from previous week $100 $ Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store 7 units units Source Phones 3 Choose Supplier Team Chooses A, B or C B 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice $3 6 Phones you choose to Order Team chooses 5 units 7 Total Order Cost Line 5 x Line 6 $15 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 9 Units Delivered this week From Line 4 and Line 6 0 units 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 No supply arrives in week 1

Step Description Calculation Hint Week 1 Week 2 Start Accounting 1 Starting Cash Balance Line 19 from previous week $100 $ Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store 7 units units Source Phones 3 Choose Supplier Team Chooses A, B or C B 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice $3 6 Phones you choose to Order Team chooses 5 units 7 Total Order Cost Line 5 x Line 6 $15 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 9 Units Delivered this week From Line 4 and Line 6 0 units 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 5 units available for sale

Step Description Calculation Hint Week 1 Week 2 Start Accounting 1 Starting Cash Balance Line 19 from previous week $100 $ Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store 7 units units Source Phones 3 Choose Supplier Team Chooses A, B or C B 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice $3 6 Phones you choose to Order Team chooses 5 units 7 Total Order Cost Line 5 x Line 6 $15 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 9 Units Delivered this week From Line 4 and Line 6 0 units 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 Sold all 5 units available for sale

Step Description Calculation Hint Week 1 Week 2 Start Accounting 1 Starting Cash Balance Line 19 from previous week $100 $ Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store 7 units units Source Phones 3 Choose Supplier Team Chooses A, B or C B 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice $3 6 Phones you choose to Order Team chooses 5 units 7 Total Order Cost Line 5 x Line 6 $15 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 9 Units Delivered this week From Line 4 and Line 6 0 units 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 0 units left over

Step Description Calculation Hint Week 1 Week 2 Start Accounting 1 Starting Cash Balance Line 19 from previous week $100 $ Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store 7 units units Source Phones 3 Choose Supplier Team Chooses A, B or C B 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice $3 6 Phones you choose to Order Team chooses 5 units 7 Total Order Cost Line 5 x Line 6 $15 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 9 Units Delivered this week From Line 4 and Line 6 0 units 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) 2 units Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 2 units of missed demand

Step Description Calculation Hint Week 1 Week 2 Start Accounting 1 Starting Cash Balance Line 19 from previous week $100 $ Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store 7 units units Source Phones 3 Choose Supplier Team Chooses A, B or C B 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice $3 6 Phones you choose to Order Team chooses 5 units 7 Total Order Cost Line 5 x Line 6 $15 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 9 Units Delivered this week From Line 4 and Line 6 0 units 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) 2 units Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit $2 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 Q = $2 penalty for each missed unit

Step Description Calculation Hint Week 1 Week 2 Start Accounting 1 Starting Cash Balance Line 19 from previous week $100 $ Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store 7 units units Source Phones 3 Choose Supplier Team Chooses A, B or C B 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice $3 6 Phones you choose to Order Team chooses 5 units 7 Total Order Cost Line 5 x Line 6 $15 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 9 Units Delivered this week From Line 4 and Line 6 0 units 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) 2 units Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit $2 15 Cost of Missed Demand Line 14 x Line 13 $4 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 $4 cost of missed demand

Step Description Calculation Hint Week 1 Week 2 Start Accounting 1 Starting Cash Balance Line 19 from previous week $100 $ Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store 7 units units Source Phones 3 Choose Supplier Team Chooses A, B or C B 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice $3 6 Phones you choose to Order Team chooses 5 units 7 Total Order Cost Line 5 x Line 6 $15 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 9 Units Delivered this week From Line 4 and Line 6 0 units 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) 2 units Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit $2 15 Cost of Missed Demand Line 14 x Line 13 $4 16 Inventory Holding Cost $1 x Line 12 $0 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 0 units left over

Step Description Calculation Hint Week 1 Week 2 Start Accounting 1 Starting Cash Balance Line 19 from previous week $100 $ Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store 7 units units Source Phones 3 Choose Supplier Team Chooses A, B or C B 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice $3 6 Phones you choose to Order Team chooses 5 units 7 Total Order Cost Line 5 x Line 6 $15 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 9 Units Delivered this week From Line 4 and Line 6 0 units 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) 2 units Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit $2 15 Cost of Missed Demand Line 14 x Line 13 $4 16 Inventory Holding Cost $1 x Line 12 $0 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 $25 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 $5 x 5 phones sold

Step Description Calculation Hint Week 1 Week 2 Start Accounting 1 Starting Cash Balance Line 19 from previous week $100 $ Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store 7 units units Source Phones 3 Choose Supplier Team Chooses A, B or C B 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice $3 6 Phones you choose to Order Team chooses 5 units 7 Total Order Cost Line 5 x Line 6 $15 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 9 Units Delivered this week From Line 4 and Line 6 0 units 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) 2 units Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit $2 15 Cost of Missed Demand Line 14 x Line 13 $4 16 Inventory Holding Cost $1 x Line 12 $0 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 $25 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 $4 in total penalty costs

Step Description Calculation Hint Week 1 Week 2 Start Accounting 1 Starting Cash Balance Line 19 from previous week $100 $ Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store 7 units units Source Phones 3 Choose Supplier Team Chooses A, B or C B 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice $3 6 Phones you choose to Order Team chooses 5 units 7 Total Order Cost Line 5 x Line 6 $15 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 9 Units Delivered this week From Line 4 and Line 6 0 units 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) 2 units Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit $2 15 Cost of Missed Demand Line 14 x Line 13 $4 16 Inventory Holding Cost $1 x Line 12 $0 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 $25 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 $106 $100 + $25 - $15 - $4 penalty

Step Description Calculation Hint Week 1 Week 2 Start Accounting 1 Starting Cash Balance Line 19 from previous week $100 $106 Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store 7 units units Source Phones 3 Choose Supplier Team Chooses A, B or C B 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice $3 $ 6 Phones you choose to Order Team chooses 5 units 7 Total Order Cost Line 5 x Line 6 $15 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 9 Units Delivered this week From Line 4 and Line 6 0 units 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) 2 units Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit $2 15 Cost of Missed Demand Line 14 x Line 13 $4 16 Inventory Holding Cost $1 x Line 12 $0 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 $25 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 Start week 2

Repeat step for each Week
Start Accounting Get Demand Source Phones Compute Sale and Inventory Sell Phones & Pay Penalty Compute Profit or Loss End Accounting PLEASE DO NOT MOVE AHEAD. TEAMS WILL STAY ON THE SAME STEP UNTIL THE INSTRUCTOR SAYS TO MOVE TO THE NEXT! AFTER EACH WEEK WE WILL RECORD OUR TEAMS SCORES!

Let the Game Begin

Week 2 Start accounting Step Description Calculation Hint Week 2
1 Starting Cash Balance Line 19 from previous week $106 Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store units Source Phones 3 Choose Supplier Team Chooses A, B or C 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice $ 6 Phones you choose to Order Team chooses 7 Total Order Cost Line 5 x Line 6 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 5 units 9 Units Delivered this week From Line 4 and Line 6 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit $ 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 Start accounting

Week 2 Get Demand Step Description Calculation Hint Week 2
Start Accounting 1 Starting Cash Balance Line 19 from previous week $106 Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store units Source Phones 3 Choose Supplier Team Chooses A, B or C 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice $ 6 Phones you choose to Order Team chooses 7 Total Order Cost Line 5 x Line 6 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 5 units 9 Units Delivered this week From Line 4 and Line 6 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit $ 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 Get Demand

Week 2 Source Phones Step Description Calculation Hint Week 2
Start Accounting 1 Starting Cash Balance Line 19 from previous week $106 Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store units Source Phones 3 Choose Supplier Team Chooses A, B or C 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice $ 6 Phones you choose to Order Team chooses 7 Total Order Cost Line 5 x Line 6 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 5 units 9 Units Delivered this week From Line 4 and Line 6 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit $ 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 Source Phones

Week 2 Compute inventory and sales Step Description Calculation Hint
Start Accounting 1 Starting Cash Balance Line 19 from previous week $106 Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store units Source Phones 3 Choose Supplier Team Chooses A, B or C 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice $ 6 Phones you choose to Order Team chooses 7 Total Order Cost Line 5 x Line 6 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 5 units 9 Units Delivered this week From Line 4 and Line 6 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit $ 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 Compute inventory and sales

Week 2 Compute penalty costs Step Description Calculation Hint Week 2
Start Accounting 1 Starting Cash Balance Line 19 from previous week $106 Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store units Source Phones 3 Choose Supplier Team Chooses A, B or C 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice $ 6 Phones you choose to Order Team chooses 7 Total Order Cost Line 5 x Line 6 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 5 units 9 Units Delivered this week From Line 4 and Line 6 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit $ 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 Compute penalty costs

Week 2 Compute profit or loss Step Description Calculation Hint Week 2
Start Accounting 1 Starting Cash Balance Line 19 from previous week $106 Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store units Source Phones 3 Choose Supplier Team Chooses A, B or C 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice $ 6 Phones you choose to Order Team chooses 7 Total Order Cost Line 5 x Line 6 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 5 units 9 Units Delivered this week From Line 4 and Line 6 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit $ 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 Compute profit or loss

Week 2 End accounting Step Description Calculation Hint Week 2
Start Accounting 1 Starting Cash Balance Line 19 from previous week $106 Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store units Source Phones 3 Choose Supplier Team Chooses A, B or C 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice $ 6 Phones you choose to Order Team chooses 7 Total Order Cost Line 5 x Line 6 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 5 units 9 Units Delivered this week From Line 4 and Line 6 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit $ 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 End accounting

Week 3 Record Score from week 2 before beginning week 3

1 Starting Cash Balance Line 19 from previous week $ Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store units Source Phones 3 Choose Supplier Team Chooses A, B or C 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice 6 Phones you choose to Order Team chooses 7 Total Order Cost Line 5 x Line 6 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 5 units 9 Units Delivered this week From Line 4 and Line 6 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit $ 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 Start accounting

Start Accounting 1 Starting Cash Balance Line 19 from previous week $ Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store units Source Phones 3 Choose Supplier Team Chooses A, B or C 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice 6 Phones you choose to Order Team chooses 7 Total Order Cost Line 5 x Line 6 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 5 units 9 Units Delivered this week From Line 4 and Line 6 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit $ 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 Get Demand

Start Accounting 1 Starting Cash Balance Line 19 from previous week $ Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store units Source Phones 3 Choose Supplier Team Chooses A, B or C 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice 6 Phones you choose to Order Team chooses 7 Total Order Cost Line 5 x Line 6 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 5 units 9 Units Delivered this week From Line 4 and Line 6 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit $ 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 Source Phones

Start Accounting 1 Starting Cash Balance Line 19 from previous week $ Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store units Source Phones 3 Choose Supplier Team Chooses A, B or C 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice 6 Phones you choose to Order Team chooses 7 Total Order Cost Line 5 x Line 6 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 5 units 9 Units Delivered this week From Line 4 and Line 6 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit $ 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 Compute inventory and sales

Start Accounting 1 Starting Cash Balance Line 19 from previous week $ Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store units Source Phones 3 Choose Supplier Team Chooses A, B or C 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice 6 Phones you choose to Order Team chooses 7 Total Order Cost Line 5 x Line 6 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 5 units 9 Units Delivered this week From Line 4 and Line 6 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit $ 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 Compute penalty costs

Start Accounting 1 Starting Cash Balance Line 19 from previous week $ Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store units Source Phones 3 Choose Supplier Team Chooses A, B or C 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice 6 Phones you choose to Order Team chooses 7 Total Order Cost Line 5 x Line 6 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 5 units 9 Units Delivered this week From Line 4 and Line 6 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit $ 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 Compute profit or loss

Start Accounting 1 Starting Cash Balance Line 19 from previous week $ Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store units Source Phones 3 Choose Supplier Team Chooses A, B or C 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice 6 Phones you choose to Order Team chooses 7 Total Order Cost Line 5 x Line 6 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 5 units 9 Units Delivered this week From Line 4 and Line 6 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2, if sufficient inventory or < Line 2 insufficient inventory) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) Per Unit $ 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18 End accounting

Final Round is Complete
Record Score from week 6

Discussion Questions What was your team’s strategy and how did it work? Was it good? Would you change it? What were some difficulties your team ran into during the game? What worked and what didn’t work? Did the team with the highest demand get the most cash? How was STEM used in this game? How is STEM used in the cell phone industry?

More Discussion Questions
What are benefits of Insourcing vs Outsourcing (i.e. “Make vs Buy”)? What is value of Supplier Relationship Management? What are the relationship between different modes of transportation, cost and lead time? What is “Noise in the system?” What else could happen, what are risks?

TEACHER RESOURCES

Supply List Monopoly Money Color chips or poker chips for phones
Deck of regular cards with jokers Plastic cash register drawer Zip Lock bags Paper clips to secure money together Printable materials from this presentation ***NOTE FROM DESIGNER: all blue, underlined text is a hyperlink to the products amazon page!

Instructor Game Set Up Room Set Up: See Classroom Layout (page 84)
Create tables for 3 suppliers, 1 retail store location, and room for 6-8 teams Supplier Set Up Print Out Supplier Cards (hang on front of supplier table) & 1 cheat sheet (page 13) $100 Play Money to each of 3 suppliers ($1), 7 ($5), 3 ($10), 1 ($20) 6 weeks inventory: 6 ziploc bags/supplier each containing 10 (supplier A), 15 (supplier B), or 30 (supplier C) chips Team Set Up: Create 8 Packets, each in a Ziploc bag $100 play money paper clipped together: 5 ($1), 3 ($5), 4 ($10), 2 ($20) 5 plastic chips Supplier info: 1 supplier cheat sheet (page 13) & 8 Supplier Order Forms (page 93) Scorecards: 1 Filled Out (sample, page 35); 1 Blank (for game, page 92) Note: if $1 bills run short, use $100 bills as $1. They are the same color.

Instructor Game Set Up Retail Store Set Up
Create Station: Cash Register Drawer + Money + Retail Store Printable + Playing cards Separate Playing Cards into 2 piles (A-10, J-K +Joker) and place into appropriate location on retail store printable Put 7 on top as top card in demand pile (for practice week) Put Q as top card in penalty pile (for practice week) Retail store role: Each team Accountant: Picks a unique weekly demand card from the retail store. Sales: Sells phones weekly at retail store for $5/each Sales: Assesses and pays weekly penalties at retail store Excess inventory: $1/unit Unmet Demand: Draw Penalty card Perfect Order: No penalty

Classroom Layout Supplier #1 Insourcing Supplier #3 China Supplier #2
Gotham Team Team Team Team Team Team Team Team Retail Store

External Forces If the game is moving well instructors may throw in some external force. Examples include: Due to quality issue all green chips are now defective and must be returned to supplier Capacity at Supplier is reduced / increased for rest of game Lead time is increased at supplier C due to fire Etc.

Printables Supplier stations: A, B, C
Retail Store: Demand Station & Excess Inventory Penalty Supplier order sheets Student team score cards Please note that the following printables works best when printed on legal size paper Display “Team Score Keeping” in classroom (power point or draw on chalkboard) to keep weekly score

Supplier A: INSOURCE Capacity = 10 units/week Price = $4/unit
Lead Time = 0 weeks No Min Qty

Supplier B: GOTHAM CITY
Capacity = 15 units/week Price = $3/unit Lead Time = 1 week No Min Qty

Supplier C: CHINA Capacity = 30 units/week Price = $1/unit
Lead Time = 2 weeks Minimum Qty = 10

Unmet Demand Penalty Cards
Retail Store Unmet Demand Penalty Cards Demand Cards Per Unit Penalty Jack $1 Queen $2 King $3 Joker $4 (Ace – 10) (Jack, Queen, King, Joker)

Team Score Keeping: Team Name Week 1 Cash Balance Week 2 Cash Balance

The Cell Phone Retail Game Team Scorecard
Team name Step Description Calculation Hint Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Start Accounting 1 Starting Cash Balance Line 19 from previous week $100 $ $ Get Demand 2 Weekly Demand Pick Card (Ace - 10) from retail store units Source Phones 3 Choose Supplier Team Chooses A, B or C 4 Week supply becomes available Current week, or +1 week or +2 weeks 5 Cost per Unit of Supply $4, $3 or $1 based on team supplier choice 6 Phones you choose to Order Team chooses 7 Total Order Cost Line 5 x Line 6 Compute Inventory and Sales 8 Beginning Inventory Line 12 from previous week 5 units 9 Units Delivered this week From Line 4 and Line 6 10 Inventory Available for Sale Line 8 + Line 9 11 Number of Sales Max (Line 2 or Line 10) 12 Ending Inventory on hand Line 10 - Line 11 13 Units of Missed Demand Max (Line 2 - Line 10 or 0) Compute Penalty Costs 14 Missed Demand Penalty Pick Card (Jack = $1, Queen = $2, King = $3, Joker = $4) 15 Cost of Missed Demand Line 14 x Line 13 16 Inventory Holding Cost $1 x Line 12 Compute Profit or Loss 17 Revenue from Phone Sales $5 x line 11 18 Total Penalty Cost Line 15 + Line 16 End Accounting 19 Ending Cash Balance Line 1 - Line 7 + Line 17 - Line 18

Place Cell Phones Here Place Cell Phones Here Place Cell Phones Here
Supplier Order Form Team Name Supplier Order Qty Price / Unit Total Cost Order Week Delivery Week Supplier Order Form Team Name Supplier Order Qty Price / Unit Total Cost Order Week Delivery Week Place Cell Phones Here Place Cell Phones Here Supplier Order Form Team Name Supplier Order Qty Price / Unit Total Cost Order Week Delivery Week Supplier Order Form Team Name Supplier Order Qty Price / Unit Total Cost Order Week Delivery Week Place Cell Phones Here Place Cell Phones Here

The Cell Phone Retail Game High School and College Program

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The Cell Phone Retail Game High School and College Program

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