Freddie Barnard Department of Agricultural Economics Purdue University

 Overview of the simulation  Management tools taught  Contact information  Demonstrate the simulation - after the session

 Updated Purdue Farm Supply Game  Farm supply store - sells feed and fertilizer  Students divided into ‘teams’  Teams are divided into ‘markets’  Three interest rate scenarios

 Four positions per team General Manager Inventory Manager Labor Manager Cash Manager  A decision form is completed each decision

 Each decision represents one quarter  Maximum simulation time is 12 quarters  Sales vary from quarter to quarter  Students provided sales records for previous 3 years

 Each store sells the same four products Complete feed Concentrate feed Commercial grade fertilizer Custom blend fertilizer  Lost sales are reported as unfilled orders  Emergency orders

 All stores start from an identical financial position  Profits determine the winning team  All profits are retained over the entire simulation time and determine the winning team

 Product prices  Product orders  Emergency orders  Advertising  Credit policies  Storage/truck purchase vs. rent  Labor  Borrowing  Repaying loans  Investing

 Income Statement – current quarter (per ton and percentage of sales) and past 12 months  Balance Sheet  Sales Report  Storage, Truck and Labor Utilization Report  Actual Cash Flow  Market Share Report

 Cash Flow – Pro Forma and Actual  Breakeven  Profitability Linkage Model–Comparisons Over time Peer group data  Pro forma Balance Sheet and Income Statement

 Software  Manual  Forms

Freddie Barnard Department of Agricultural Economics Purdue University 403 W. State Street West Lafayette, IN (765)