THE MASTER OF THE GAME LOST (Introduction)

GAERMONT COMPANY Gaermont is a company dedicated to producción and marketing of souvenirs and balls.

GAERMONT COMPANY Up until now, Gaermont has been a family business, but the enormous growth of the company have made them aware of the need to achieve professional for making logistical decisions.

GAERMONT COMPANY For finding this talent, Gaermont has developed a logistic simulator (LOST). In this simulator it has developed a series of challenges that allow participants to grow in the skills for this kind of decisions...

THE FACILITIES Although the level of difficulty will be increased gradually, the story has a common scenario... Gaermont has two facilities: A factory where eight different items are produced... A store where they sell these eight products...

THE FACILITIES The mean idea is to make a production planning and during the week the factory will produce these goods. Meanwhile, the store will sell the finished products. The factory works from Monday to Friday, and on Saturday they will send the items produced and will do the preventive maintenance to machines.

A GRAPHICAL REPRESENTATION

THE FINAL SCORE The final score of the game only depends on the utility reached at the end of the year.

GUIDELINES Now you have to observe the following guidelines to understand how the game works

THE FACTORY The production department has three machines which are used to make eight articles. Furthermore, to make each item you require a certain amount of one or more different raw materials. We will provide you a table describing the number of minutes that each article uses at each machine, as well as the number of grams of different raw materials.

THE FACTORY Each of the machines in the factory is operated by a worker. The factory works 16 hours at day from Monday to Friday (two production shifts). This means that it is possible to use each machine a total of 80 hours per week. This time constraint will be extremely important to make your production plan.

PRODUCTION DATA Consider the next table Table 1

PRODUCTION DATA If you want to perform a production run of 800 units of Product 1 and 200 units of Product 4. You will need: 800 (3) (6) = minutes at the machine (5) (5) = minutes at the machine (4) (0) = minutes at the machine 3 Note: This production plan is impossible to execute because you outgrow time machine 2 that is 80 hours (4800 minutes).

PRODUCTION DATA Now suppose you want to produce 60 units of Product 1 and 30 units of Product 7. Then you will use: 60 ( 40) + 30 (60) = grams of raw material A 60 (120) + 30 (80) = grams of raw material B 60 ( 80) + 30 (90) = grams of raw material C By other hand, every time that you specify the amount of raw material for production, employees take this raw material from the warehouse and the excess raw material is lost. That is, if you intended to this production run 8 kg of A, 10 kg of B and 9 kg of C, you would be wasting materials (you will have a surplus of 3.8 kg of A, 0.4 kg of B, and 1.5 kg of C) and it will increase your production cost.

SUPPLIERS DATA Consider the next table TABLA 2

SUPPLIERS DATA Suppose that you want to order 800 Kg of Raw Material A to supplier 2, and order 500 Kg of Raw Material C to supplier 3. The cost will be: 800 (42) (58) =

GAERMONT COMPANY Moreover, the company has decided that the purity of the material used in the production (quality), must be at least 90. So if you perform a production plan, then you must calculate the weighted purity of materials. To do this, you must be add the product of the quality of the raw material multiplied by the quantity of raw material, and then divide by the quantity of raw material used in the production run. The surplus of raw material will not be considered at this calculus.

GAERMONT COMPANY By example, we said before that the quantity of raw material needed for 60 units of Product 1 and 30 units of product 7 is 4.2 Kg de Raw Material A, 9.6 Kg of Raw Material B and 7.5 Kg of Raw Material C. If we intended 4.2 Kg of Raw Material A from Supplier 1; 5 Kg of Raw Material B from Supplier 2; 5 Kg of Raw Material B from Supplier 2; and 8 Kg of Raw Material B from Supplier 3; to this production plan, then the quality will be: [ (4.2) (90) + (5) (96) + (4.6) (91) + (7.5) (97) ] / ( ) = In this calculus is important to note that the weighted quality is calculated only with the quantity of material used in production. Furthermore, in the case of raw material B where two different qualities are used, we use first the raw material with the highest quality.

OPERATION COSTS Finally, consider also that the use of the machines generates a cost per hour and employees have a weekly wage.

OPERATION COSTS If you decide to produce 800 units of article 1, then you will use minutes at machine 1; minutes at machine 2; and minutes at machine 3 (assuming production times listed in Table 1). This means that you spend operation on two concepts: Wages and Cost of machine operation. The cost of salaries is $ 9,000 (six workers with a salary of $ 1,500 per week). The cost of operating the machines will be: (2400/60) (120) + (4000/60) (150) + (3200/60) (210) = $

THE STORE Gaermont revenues are generated by the number of items they sell to their customers. To make every decision you'll have a report on the amount of finished product that exists in store. You must consider that if demand is higher than the amount of product available for sale, the excess demand becomes lost sale. For example, suppose that at the beginning of the week you observe that has 228 units Product 1 and 306 units of the product 4. If demand during the week was 102 units of product 1 and 423 units for the product 4, this means that sales of the Product 1 and 4, will be 102 and 306 units, respectively. Income is calculated by multiplying the number of units sold by the selling price of each unit (which appears in Table 1)

THE MONEY Each week the program will show a report of the quantity of money that you have at the bank. The bank will pay you an interest rate of 8% anually. YOU WILL NEVER END A WEEK WITH RED NUMBERS. If you do this the game will end.

THE TRANSPORT To carry materials from the factory to the store you can use one or more transport units. Each unit can carry 800 units and the cost of renting a unit is $ 1000.

THE SCENARIOS During this course your will face three different challenges: SCENARIO 1: THE WORLD OF CERTAINTY SCENARIO 2: REALITY IS STOCHASTIC SCENARIO 3: INCORPORATING DEMAND CURVES

THE WORLD OF CERTAINTY Features There is a record of demand Supplier have a fixed lead time No defective products in production There is only one type of transport Decisions Decision 1: How to produce? Decision 2: What quantity of raw material will be used for production? Decision 3: Do you order raw material to suppliers? Decision 4: How many units of transport do you want to use?

REALITY IS STOCHASTIC Features There is a record of sales Supplier have stochastics lead time There are defective products in production There is two types of transport Decisions Decision 1: How to produce? Decision 2: What quantity of raw material will be used for production? Decision 3: Do you order raw material to suppliers? Decision 4: How many units of each type of transport do you want to use?

INCORPORATING DEMAND CURVES Features There is a record of sales and sales price There is the possibility to work overtime Supplier have stochastics lead time There are defective products in production There is two types of transport Decisions Decision 1: How to produce? Decision 2: What quantity of raw material will be used for production? Decision 3: Do you order raw material to suppliers? Decision 4: Do you want to work overtime? Decision 5: Do you want to change the sales price? Decision 6: How many units of each type of transport do you want to use?

GAERMONT COMPANY WELCOME TO LOST !!! We expect you to become " THE MASTER OF THE GAME "

THE MASTER OF THE GAME LOST (How to use)

WELCOME The simulator has a Welcome page Click on the "INSTRUCCIONES" button

WINDOW “INSTRUCTIONS” The "Instrucciones" window will remind you the kind of decisions you will take and the main constraints that must be considered Click on the "INICIAR NUEVO JUEGO" button

WINDOW “DECISIONES” This is the Decision Window Production Data Demand Data Decisions

PRODUCTION DATA On the Window “Datos de Producción” (Production Data) you will find the main data to operationalize the simulator: Time machine for the items, quantities of raw materials, operation data and data on suppliers.

DEMAND DATA WINDOW The Window “Datos demanda” provides demand data for the last four years of the products

THE “DECISIONS” WINDOW This is the most important window, because here is where you have to make decisions. The green or red cells indicate that no relevant information to consider. Blank cells are used for decision making. Initial Inventary on store Raw Material Inventory Raw Materials in Transit Indicator of Quantity and Quality of Production Production Plan Raw Materials to use in the Production Plan Order of Raw Material to Suppliers Money at the bank

THE “DECISIONS” WINDOW By other hand, there are five bottons that will help you to visualize the elements that you must consider at decision making.

GRAPHS This window is used to graph the demand data.

INVENTORY OF FINISHED GOODS This window will show you a graphical representation of the initial inventory at the store.

RAW MATERIAL This window offer you a graphical representation of the raw material in stock and raw materials in transit.

SUPPORT FOR DECISION MAKING Finally, the button “Support for decision making” provides a graphical representation that allows you to distinguish relevant components for decision making.

SUPPORT FOR DECISION MAKING The first part of this window tells you if the production plan is feasible. The first box show you if there is time machine available for production This box shows you if there is sufficient raw material for the production plan. This box shows you the quality you could achieve in implementing the production plan. This box shows you the cost of implement the production plan considering the machine operation and the wage of the workers). First Decision

SUPPORT FOR DECISION MAKING The second part shows you if the choice you've made on the quantity and quality of the raw material meets the production constraints. Availability of raw materials The lights will indicate whether the selected amount of raw material used is sufficient and if the quality is higher than the established minimum quality Second Decision

GAERMONT COMPANY The third part of this window shows you how much money you're using to make orders. Quantity of money used to make orders Third Decision

SUPPORT FOR DECISION MAKING When you think you have the final decision, you can transfer the values to the window Decisions If you want to experiment with new options, you can just wipe data.

TROPHY ROOM LOST has a trophy room which could be a guide in decision making. When you get a specific number of good decisions a new thophy will appear in this room.

DECISION WINDOW Once you complete the decisions, then click on the "Next Period" button. Do not leave blank spaces.

PROFITS When you click on the "Next Period" button you will get a window that will ask you to confirm the decision. When you confirm, the following report will be displayed

TRANSPORT Finally, you must decide on the number of units you use to transport the finished product out of the factory to the store. You must also specify the number of units you want to send

WELCOME GOOD LOOK AND WELCOME LOST !!! We expect you to become "THE MASTER OF THE GAME"

A LITTLE TOUR BY LOST youtu.be/4nGrgQTWj40