1. Pierre-Majorique LÉGER Jacques ROBERT Gilbert BABIN Robert PELLERIN Bret WAGNER Version : August 2012 © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Copyright © 2012 HEC Montréal ERP Simulation Game Distribution Game Version 2012-2013

2. About ERPsim

3. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca About ERPsim Lab The mission of ERPsim Lab is to conduct research, development and transfer in the field of serious games in information technology. It has created ERP business simulations that are used in more than 150 universities worldwide and, through its commercial arm, Baton Simulation Inc., in many large corporations.

4. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca ERPsim Lab: Development team Research team Prof. Pierre-Majorique Léger, Ph.D., Director ERPsim Lab (HEC Montréal) Prof. Gilbert Babin, Ph.D. (HEC Montréal) Prof. Jacques Robert, Ph.D. (HEC Montréal) Prof. Robert Pellerin, Ph.D. (École Polytechnique de Montréal) Prof. Bret Wagner, Ph.D. (Western Michigan University) Technical team Jean-François Michon, M. Sc. (HEC Montréal) Arnaud Paquet, BAA. (HEC Montréal)

5. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Sales Automated by ERPsim Planning Automated by ERPsim Procurement Automated by ERPsim What is ERPsim ?

6. Introduction to the distribution game

7. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca ERP Simulation Games: Pedagogical objectives To show how the ERP system supports business strategies To develop a hands-on understanding of the concepts underlying enterprise systems To experience the tangible benefits of enterprise integration firsthand To develop technical skills at taking decision using an enterprise software

8. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Distribution game In groups of at most 4 participants, each team operates a bottle distribution company. Using standard reports, participants have to make business decisions to ensure the profitability of their operation

9. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca German market North 45 retailers South 38 retailers West 40 retailers 6 products (boxes of 12x1L and 24x500mL) 3 areas with distinct marketing accounts One distribution channel : 18 Market size of about € 6,000 per company per step

10. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca 6 products Product CodeProduct DescriptionUnits in boxCost of boxes $$-B011L ClearPure12 bottles 11.99 $$-B021L Spritz12 bottles 14.99 $$-B031L Lemon Spritz12 bottles 16.99 $$-B04500mL ClearPure24 bottles 16.99 $$-B05500mL Spritz24 bottles 19.99 $$-B06500mL Lemon Spritz24 bottles 22.99

11. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Game layout 20 steps 25 min 20 steps 25 min 20 steps 25 min

12. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Rules of the game Each round will be of 20 steps (a bit more than 1 min per step) End-of-round inventory is carried over to the next round You can sell a product only if you have it in stock You compete against the other teams and importers Your objective is to maximize profit

13. SAP Navigation

14. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca ABC of Enterprise systems An enterprise system is build around an integrated database A system such as SAP contains tens of thousands data tables When a user creates, changes or views data in the system, he or she performs a transaction Data changed or created by one user can be exploited by all other users (ex. reporting, tracking, execution of orders, etc.) All transactions are traceable, transactions with financial impacts can be reversed, never erased

15. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca User interface Users interact with the enterprise system through transactions. A large number of pre-programmed transactions exist in SAP Each transaction has a transaction code – one can call a transaction if one knows the transaction code The SAP menu allows to browse and find the desired transaction One can create a user menu or a list of favourites with the commonly used transactions

16. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca SAP Menu & Navigation Extras / Settings / Display technical names

17. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Reports and queries Reports and queries are transactions that allow users to view existing data A typical query is performed as follows: In the first page of the transaction, you must enter the selection criteria for the query (ex. Company code, product code, etc.) Then, click on to execute the query A table containing the requested data will appear The display and layout can sometimes be modified

18. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Entering new data Some transactions are designed to change or create new data (change forecast, release purchasing orders, change sale price, etc.) The interface varies according to data required by the system The system will not allow you to save information if all the compulsory fields have not been filled You must save/release/confirm before exiting the transaction

19. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Other useful buttons Use the navigation buttons to go back or get out of a transaction You can open up to 6 sessions. Click on to open a new session Delete, search, select all, view, enter.

20. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Participant’s job aid

21. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Let’s get started! Set up teams: Max 4 persons : User 1 to User 4 Up to 26 companies : A to Z Log in using user name and password by your instructor.

22. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Login information Client will be provided by the instructor Login: $ # Where $ = Team (from a to z) # = User (from 1 to 9) Password: ERPSIM (capital letters) You will have to change your password the first time you enter

23. Distribution Game: Round 1 20 steps 25 min

24. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Cost, inventory & initial pricing Material$$-B01$$-B02$$-B03$$-B04$$-B05$$-B06 Name 1L ClearPure1L Spritz 1L Lemon Spritz 500mL ClearPure 500mL Spritz 500mL Lemon Spritz Size1L 500mL Number of bottles in package 12 24 Cost €11.99 €14.99 €16.99 €19.99 €22.99 Initial price €14.99 €17.99 €19.99 €22.99 €25.99 Initial stock1,000

25. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca The Distribution Game: Round 1 (20 steps) You need to maintain the price of your 6 products and invest in marketing. What do you need to know in order to make that decision ? You need to know how to : Maintain price list See available stock Monitor sales orders Monitor competitors

26. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Participant’s job aid & Menu

27. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Maintain Prices for DC 18

28. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Marketing expenses

29. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca On marketing Enter your daily marketing budget for each product and for each region The impact of marketing in one region depends on your share of all marketing expenses in this region Marketing induces customers to find your product “more desirable” The daily marketing budget can be changed at any time

30. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Stock in material overview

31. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Check sales summary report

32. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Check market report

33. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Check sales order report

34. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca The Distribution Game: Round 1 (20 days) We start the simulator for 20 days

35. Distribution Game: Round 2 20 days 25 min

36. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca It’s time to replenish ! You need to replenish. Replenishment will allow you to purchase the same quantity that you have sold. Material$$-B01$$-B02$$-B03$$-B04$$-B05$$-B06 Name 1L ClearPure1L Spritz 1L Lemon Spritz 500mL ClearPure 500mL Spritz 500mL Lemon Spritz Initial forecast1,000 Replenishment lead time Up to 3 days

37. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Participant’s job aid & Menu

38. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Execute MRP

39. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca After the MRP run

40. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Convert purchase requisitions into purchase orders

41. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Track purchase orders

42. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca The Distribution Game: Round 2 (20 days) We start the simulator for 20 days

43. Distribution Game: Round 3 20 days 25 min

44. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca It’s time to replenish ! You need to replenish. Change your forecast to adapt the replenishment levels to your needs What do you need to know in order to make that decision ? Material$$-B01$$-B02$$-B03$$-B04$$-B05$$-B06 Name 1L ClearPure1L Spritz 1L Lemon Spritz 500mL ClearPure 500mL Spritz 500mL Lemon Spritz Initial forecast1,000 Replenishment lead time 3 days

45. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Participant’s job aid & Menu

46. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Forecasting

47. © Léger et al. 2012 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca The Distribution Game: Round 3 (20 days) We start the simulator for the last 20 days

48. Debriefing