Our group, SC Solutions was anxiously awaiting the opening of the game in order to gain full access to begin making changes. Unfortunately, our team members had extremely conflicting schedules so we were unable to meet prior to the start of the game to discuss an in depth strategy. Our primary means of communication were established through text messages and occasional emails.
On Wednesday, September 18th we were able to log into the game for the first time. One of the immediate things we agreed upon as a group was that we would not let our excitement for the game lead us to making drastic changes as soon as we were able to. We agreed on making some obvious necessary changes ...view middle of the document...
We made this decision solely based on a cost basis, assuming that we correctly accounted for the increase in demand and lead time would not be an issue.
Next, we moved our order point to 600. We did this to make sure our factory was running at full capacity around the clock in order to begin building up as much inventory as possible to accompany the first spike in demand. We did not feel as though the holding costs that would be associated with increasing our inventory would be detrimental considering the high level of demand.
It was now time to increase our order quantity. We knew we would have to increase it to an amount that would fit our shipping method choice. Therefore if we decided to move it from its originally quantity of 150, we would either move it down to 100 and ship via mail, or move it up to a factor of 200 to efficiently ship via truck. We decided on 200 to stay conservative while simultaneously taking advantage of the truck shipping option.
We monitored our progress very closely over the next 24 hour period and saw that we were performing well and decided it would be best to continue with all of our changes as they were. Although we were missing demand through the first peak, we knew that our capacity expansion would not come in time to fill the lost demand. We considered expanding capacity again for the second peak but quickly realized that if we increased our order point, the factory would run continuously and we could build up enough inventory to fully take advantage of the second period of high demand.