Simulations – feeling free to make mistakes in a risk-free “environment”

Written on December 10, 2008 by uwe.spangler@ie.edu in General

Operations Professors and MBA students use a simulation Global Supply Chain Management session.


The simulation (developed by Enspire Learning and used by Luís Solís, Ángel Díaz, Daisy Escobar, Jesús Morcillo and Daniel Corsten, among others ), is summed up as follows: “The learner’s goal is to manage the successful commercialization of two new products. Learners take control of managing product design, forecasting demand, and allocating production quantities among different suppliers. They balance competing priorities and create a supply chain that is flexible enough to react quickly to shifts in demand. Learners evaluate quantitative and qualitative data presented in dialogues with virtual characters.”

The simulation illustrates key concepts of supply chain management, including:

  • Creating a cost-effective, yet flexible supply chain, that uses domestic and foreign suppliers with different lead times accordingly
  • Building flexibility into the supply chain to avoid stock-outs and excess inventory
  • Evaluating and using demand forecasts correctly

For Daisy Escobar, head of the Operations Managament Department the simulation is “a very effective ‘decision learning’ exercise whereby the students strength their knowledge about supply chain management and gain the skills they need to design and manage supply chains in a global and uncertain market. The students have the chance to make many and diverse decisions on production adopting the systemic view necessary for coordinating and integrating cross-functional processes. I consider this simulation as one of the best complement to a general course of Supply Chain Management. It is definitely a practical, amusing, and stimulating simulation.”

We use both our own and third-party cookies to enhance our services and to offer you the content that most suits your preferences by analysing your browsing habits. Your continued use of the site means that you accept these cookies. You may change your settings and obtain more information here. Accept