Fixed Mid Moonsoonsim - Auto A

MOONSOON SIMULATION GAME
10/22/2018 MID PROJECT
Subject : Integrated Production System (IPS)
Lecturer : Johan K. Runtuk, M.T.
Created by,
1. Chrisshyaren (004201500004)
2. Kelvin (004201500015)
3. Nabila Aulia Rahmah (004201500020)
4. Rivi Sofia Ayu (004201500027)
5. Tantyo Edo Wicaksana (004201500033)
PRESIDENT UNIVERSITY
INDUSTRIAL ENGINEERING BATCH 2015
Jababeka Education Park, Ki Hajar Dewantara Street, Kota Jababeka,
West Cikarang, Bekasi 17550 – Indonesia
Phone (021) 8910 9762-6 - Fax (021) 8910 9768 - Email:
enrollment@president.ac.id - http://www.president.ac.id
ABSTRACT
Monsoon Simulation (MonsoonSIM) is a cloud-based business simulation and

experiential learning platform. It is a complete ERP (Enterprise Resources
Planning) baseline concept which means this game will not give the details of a
specific ERP concept but it will give the general concept of how production system
is all about in the context of the entire enterprise operation.
In this Integrated Production System subject, there are four indicators of
scoring for MonsoonSIM game which are Cash on Hand, Net Profit, Sales, and
Space Utilization. Our general strategy’s purpose relatively to gain the highest Cash
on Hand, Net Profit, Sales, and Space Utilization possible. There are specific
strategy assigned to each department such retailers and procurement department,
warehouse and logistics department, accounting and finance department, marketing
department. Each department will be assigned specific person who incharge and
handle on that department.
Based on the result of this game which has been conducted on October 15th,
2018, the company gain the Net profit is 12,384,917, and win the 2nd Rank over
team Class 1, Industrial Engineering Batch 2015, President University.
Keyword: MoonsoonSIM, ERP, Integrated Production System, General Strategy,

Specific Strategy, Net Profit
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ACKNOWLEDGEMENT
The Authors would like to express deepest gratitude to the Almighty God
because gives authors a lot of mercy and blessing which make authors can finish
this mid report as well.
Authors realized without the other helped, this report cannot be finished well.
In this occasion, authors would like to say thanks for some people who already
supported authors to complete this report.
 Mr.Johan K. Runtuk, M.T., as a lecture of Integrated Production System
(IPS), the one who already guided authors kindly so authors could to make
this report.
 Authors’ family which already give author support that make authors can
make this report completely.
 Authors’ friends that cannot authors said the name one by one. The friends
which already support and help authors to do this report.
Authors recognized that this report still far away from perfect. Therefore, with
all humility, authors would like to say apologizes for any mistakes in this report.
Authors hope that the readers can give a good criticism and suggestion which can
make this report better than before. Hopefully this report can help the readers to
learn and know more about the MoonsoonSim Game.
Cikarang, 22 October 2018
Authors
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TABLE OF CONTENTS
ABSTRACT ............................................................................................................ 1
ACKNOWLEDGEMENT ...................................................................................... 2
TABLE OF CONTENTS ........................................................................................ 3
LIST OF FIGURES ................................................................................................ 5
CHAPTER I ............................................................................................................ 8
INTRODUCTION .................................................................................................. 8
1.1. Problem Background ................................................................................ 8

1.2. Problem Statements .................................................................................. 9
1.3. Objectives ................................................................................................. 9
1.4. Scope ........................................................................................................ 9
CHAPTER II ......................................................................................................... 10
LITERATURE STUDY ........................................................................................ 10
2.1 Definition of Supply Chain Management ................................................... 10

2.2 Achieiving a Stategic Fit ............................................................................. 12
2.3 Developing the Supply Chain for Strategic Fit ........................................... 16
2.4 Supply Chain Drivers and Metrics .............................................................. 17
2.4.1 Facility .................................................................................................... 18
2.4.2 Inventory .................................................................................................. 19
2.4.3 Transportation .......................................................................................... 19
2.4.4 Information ............................................................................................... 20
2.4.5 Sourcing ................................................................................................... 21
2.4.6 Pricing ...................................................................................................... 21
2.5 Designing Disrtribution Networks and Applications to Online Sales ........ 21
2.5.1 Definition of Distribution......................................................................... 21
2.5.2 Factors that Influence Distribution Network Design ............................... 22
2.5.3 Design Options for a Distribution Network. ............................................ 23
2.6 Network Design in the Supply Chain ........................................................ 26
2.6.1 Decicion Making in Supply Chain Network ............................................ 26
2.6.2 Factors Influencing Network Design Decisions ...................................... 27
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CHAPTER III ....................................................................................................... 34
DATA COLLECTION AND ANALYSIS ........................................................... 34
3.1. Initial Information ...................................................................................... 34

3.2. Job Description and Responsible of Each Member ................................... 35
3.3. General Strategy ..................................................................................... 39
3.4. Specific Strategy..................................................................................... 40
3.4.1. Retailer and Procurement Department .................................................... 40
3.4.2. Warehouse and Logistics Department .................................................... 57
3.4.3. Accounting and Finance Department ...................................................... 63
3.4.4. Marketing Department ............................................................................ 67
3.5. Evaluation of the Game .......................................................................... 70
3.5.1. Why You Lose/Win ................................................................................ 70
3.5.2. Next Strategy........................................................................................... 73
CHAPTER IV ....................................................................................................... 74
CONCLUSIONS AND RECOMMENDATIONS ............................................... 74
4.1 Conclusion .................................................................................................. 74

4.2 Recommendation......................................................................................... 74
REFERENCES...................................................................................................... 75
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LIST OF FIGURES
Figure 2.1 Drivers of Supply Chain Performance ................................................. 18
Figure 2.2 Manufacturer Storage with Direct Shipping ........................................ 23
Figure 2.3 Manufacturer Storage with Direct Shipping and In-transit Merge ...... 24
Figure 2.4. Distributor storage with package carrier delivery .............................. 24
Figure 2.5. Distributor Storage with last mile delivery ......................................... 25
Figure 2.6. Manufacturer/distributor storage with customer pick-up ................... 25
Figure 2.7. Retail storage with customer pick-up ................................................. 26
Figure 3.1. Location Information .......................................................................... 35
Figure 3.2. Supply Chain Process Cycles ............................................................. 41
Figure 3.3. Location Information .......................................................................... 41
Figure 3.4. Finished Goods Purchase (Day 2) ...................................................... 42
Figure 3.5. Finished Goods Purchase (Day 9) ...................................................... 42
Figure 3.6. Retailer Area Management ................................................................. 42
Figure 3.7. Replenishment Order in Jakarta Retailer ............................................ 43
Figure 3.8. Pricing ................................................................................................. 44
Figure 3.9. Final Result of Moonsoon Game ........................................................ 44
Figure 3.10. Unit Sold per Day ............................................................................. 45
Figure 3.11. PO List: Move Stock to Jakarta ........................................................ 45
Figure 3.12. Location Information ........................................................................ 46
Figure 3.13. Initial Condition ................................................................................ 47
Figure 3.14. Initial Configuration ......................................................................... 47
Figure 3.15. Finished Goods Purchase (Day 1) .................................................... 47
Figure 3.16. Retail Area Management .................................................................. 48
Figure 3.17. Cost of Goods Sold ........................................................................... 48
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Figure 3.18. Move Stock (Day 7).......................................................................... 48
Figure 3.19. Retail Market Demand Forecast (30 Days) ...................................... 49
Figure 3.20. Jayapura Apple Juice Pricing ........................................................... 49
Figure 3.21. Jayapura Orange Juice Pricing.......................................................... 49
Figure 3.22. Jayapura Melon Juice Pricing ........................................................... 50
Figure 3.23. Daily Retail Sales ............................................................................. 50
Figure 3.24. Unit Sold per Day ............................................................................. 50
Figure 3.25. Inventory Remaining ........................................................................ 51
Figure 3.26. Location Information ........................................................................ 51
Figure 3.27. Finished Goods Purchase for Ende .................................................. 52
Figure 3.28. Move Stock for Ende ........................................................................ 52
Figure 3.29. Detail Retail Sales............................................................................. 53
Figure 3.30. Rental Space ..................................................................................... 53
Figure 3.31. Apple’s Price of Ende ....................................................................... 54
Figure 3.32. Orange’s Price of Ende ..................................................................... 54
Figure 3.33. Melon’s Price of Ende ...................................................................... 55
Figure 3.34. Final Result of MonsoonSim Game ................................................. 55
Figure 3.35. Retail Market Share (Accumulated) ................................................. 56
Figure 3.36. Sales Market Share (Accumulated) .................................................. 56
Figure 3.37. Decision Record of Reducing Warehouse Rental Space into Half... 57
Figure 3.38. PO list of Product Purchase for Warehouse Stock 1 ........................ 58
Figure 3.39 PO list of Product Purchase for Warehouse Stock 2 ......................... 59
Figure 3.40 Decision Record of Reducing Warehouse Rental Space into Zero ... 59
Figure 3.41. Purchase Regulation by each Vendor ............................................... 60
Figure 3.42. Warehouse Situation After Every Stock In ...................................... 60
Figure 3.43 Warehouse Situation with Safety Stock ............................................ 61
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Figure 3.44. Map ................................................................................................... 62
Figure 3.45. COGS ................................................................................................ 63
Figure 3.46. Income Statement ............................................................................. 64
Figure 3.47. Final Result of Moonsoon Game ...................................................... 65
Figure 3.48. Final Result of Moonsoon Game ...................................................... 66
Figure 4.49. Sales and Unit Sold Report in Marketing Report ............................. 67
Figure 3.50 Decision Record of Buy Marketing Report in Day 6 ........................ 68
Figure 3.51 Decision Record of Buy Marketing Report in Day 20 ...................... 68
Figure 3.54. Forecast Report for Day 64 until Day 95.......................................... 69
Figure 3.55. Marketing Investment Information ................................................... 69
Figure 5.56. Decision Record of Marketing Investment ....................................... 70
Figure 3.57. Scoring Indicators ............................................................................. 70
Figure 3.58. Game Result ..................................................................................... 71
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CHAPTER I
INTRODUCTION
1.1.Problem Background
On this modern era and rapid competitive in the market, all parties need a
flexible supply chain. Supply chain itself consist of all parties, directly or indirectly,
in fulfilling a customer request. Supply chain design, planning, and operation
decisions play a significant role in the success or failure of a firm. To stay
competitive, supply chains must adapt to changing technology and customer
expectations (Meindl, 2016).
The technology has been developed and touching different aspects in human
life. corporations and organizations are victimisation the integrated system to
support the business method. There are several benefits in ease the daily
work, like sharing knowledge, the activity of following knowledge, and
minimalized potential of miscommunication. Although, there are
still several issues round-faced by the corporate. The miscommunication, division-
based work, ineffective meeting, and lots of internal issues are ofttimes round-
faced.
In preventing the high chance prevalence of the issues within the future and
introduced real business scenario for the newcomers, a simulation coaching game
with interactive approach is created, like MonsoonSim. MonsoonSim could be
a powerful interactive business coaching platform in format of simulation
and appropriate for collegian, skilled employees, and government. Through this
simulation, the players can gain the summary concerning business and
ready, sensible understanding among departments, and active the team work and
collaboration in real scenario. Because of the importance of MonsoonSim Game,
so it will be played within the 10th semester of batch 2015, Industrial Engineering
students in President University. On this occasion, they have the chance and skill to
use and apply the MonsoonSim simulation software system. The report contains
the analysis, conclusion, and therefore the recommendation from MoonsoonSim
Simulation Game.
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1.2.Problem Statements
Based on the problem background above, the problem statements to be stated
are below:
a. How to get the overview of real business situation through MoonsoonSim
Game Simulation?
b. How to improve net profit, sales, cash on hand, and utilization in
MoonsoonSim Game Simulation?
c. How about the conclusion and recommendation for further MoonsoonSim
Game Simulation?
1.3.Objectives
There are several objectives of this report to be stated as below:
a. To get the overview of real business situation through MoonsoonSim Game
Simulation.
b. To improve net profit, sales, cash on hand, and utilization in MoonsoonSim
Game Simulation.
c. To make conclusion and recommendation for further MoonsoonSim Game
Simulation.
1.4.Scope
Due to limited time, there are some constraint in the practice itself, such as:
a. The simulation was done only by the Industrial Engineering batch 2015,
class 1, President University.
b. The simulated days are 90 days.
c. Several information was given by the Instructor.
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CHAPTER II
LITERATURE STUDY
2.1 Definition of Supply Chain Management
According to Li (2006), SCM (Supply Chain Management) practices can be

been defined as a set of activities undertaken in an organization to promote effective
management of its chain of supply. There are 2 core ideas in the concept of Supply
chain, which are:
1. The first core idea is practically every product that reaches an end user
represents the total effort of multiple organizations. These organizations can
be referred as collective supply chain.
2. The second core idea is that while supply chains have existed from ages ago,
some organizations only paid attention to what was happening and dont
fully understand that the entire chain of activities that ultimately delivered
products to the final customer. This will usually result in a disjointed and
often ineffective supply chains.
Organizations that made the supply chain are linked together through two kinds
of flows, physical flows and information flows. Physical flows mainly involve the
transformation, movement, and storage of goods and raw materials. They are by far
the most visible piece in the supply chain, and holds an important role as the
information flows. Information flows will allow various supply chain partners to
coordinate and cooperate in their long-term plans, and to control the day-to-day
flow of goods and raw materials up and down the supply chain.
There are several primary goals of supply chain, such as :

1. Shared Efficiency
The way of managing inventory, transportation and logistics in a company
is a complex and costly task for companies that don't have an effective
system. When manufacturers, wholesalers and retailers collaborate and join
up together in a supply chain system, it is easier to ensure efficiency and
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effectiveness. In several cases, suppliers and buyers in a channel share
inventory data, which allows for fast and fluent replenishment of inventory
to meet the demand from customer. Efficiency in getting the items to the
right place at the right moment will minimizes inventory costs and meets
customer demand.
2. Optimized Transportation and Logistics

The concept of supply chain management also involves transportation and
logistics. In several business environment, each company has its own
responsibility in ordering, shipping and transporting goods. In this structure,
The ordering costs are high and the delivering time is poor. With a good
supply chain management, vendors and buyers can optimize transportation
and logistics activities, the orders are automated between a reseller and a
vendor, and vendors can quickly pull, ship and transmit orders to buyers for
a clear communication.
3. Quality Improvement
To give customers the best value available is a shared goal of supply chain
partners. To connect closely between eachother is the objective of perpetual
quality improvement. Retailers, as the first direct link between consumers
and goods, are the ones who often receive formal and informal feedback
about the products quality. In a joint supply chain, a system exists for
retailers to send the customer feedbacks to the wholesalers and
manufacturers. This feedback enables manufacturers to find defects and
deficiencies, and can plan for an improvement of products.
4. Long Term Stability

By developing a strong trusting supply chain relationships and working
toward the best practices in distribution, companies can aim for a long-term
stability. Collaborative planning, coordination and distribution activities
between companies might spread the risks of business decisions. As each
company will look for a way to improve, a common result will be stabilized
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in industry business activities. Strong demand forecasts will allow all supply
chain members to respond to production or variations of demand. A shared
interests in meeting customer satisfication can also cause each member to
communicate on optimize their distribution systems.
2.2 Achieiving a Stategic Fit
According to Agus (2015), strategic fit can be define as aligning supply chain
strategy with competitive strategy. Companies build a competitive strategy to target
a set of customer segmentations and build strategies to fulfill the needs and
priorities of those customer segments. Companies will also observe what the
competitors are doing and what changes they can offer to have a competitive
advantage, like winning customers by offering a discount and lower price on the
product or by providing large varieties of the product or by providing better
services. Companies will be able to achieve these strategies by ensuring that their
supply chain capabilities are able to support these strategies.
For a company to perform a strategic fit, it have to gain the accompanying:
1. The competitive device and every utilitarian manner need to suit collectively to
frame an prepared widespread approach. each utilitarian technique must assist
different realistic structures what is greater, assist a company reap its targeted
method goal.
2. The one of a kind capacities in an company should well structure their tactics and
property to have the capability to execute those techniques efficaciously.
3. The outline of the general manufacturing community and the a part of every stage
must be adjusted to assist the manufacturing network method.
An employer may additionally flop both because of a lack of key suit or in mild of
the truth that its popular supply chain configuration, techniques, and belongings
don't provide the capabilities to help the coveted vital in shape. recollect, for
example, a circumstance wherein promoting is publicizing an employer's potential
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to offer an expansive assortment of objects rapidly; all of the at the same time as,
dispersion is focusing on the most decreased fee strategies for transportation. on
this circumstance, it's far likely that dispersion will postpone orders so it is able to
show symptoms of improvement transportation economies through collecting
orders collectively or making use of reasonably-priced anyhow, moderate
techniques of transportation. This hobby clashes with showcasing's expressed goal
of giving assortment unexpectedly. also, remember a state of affairs wherein a
retailer has chosen to provide a high degree of collection whilst conveying low
levels of stock however has chosen companies and transporters in view of their low
cost and not their responsiveness. For this example, the retailer might be going to
wind up with troubled customers because of terrible object accessibility.
There are several steps in order to acheive a strategic fit, those steps are:
Step 1, Understanding the Customer and Supply Chain Uncertainty To understand
the customer, a company must identify the needs of the customer segment being
served.
In general, customer demand from different segments varies along several
attributes, as follows:
 Quantity of the product needed in each lot: repair a generation line is
probably going to be little. A request for material to build another generation
line is probably going to be extensive.
 Response time that customers are willing to tolerate: The middle of the road
reaction time for the crisis arrange is probably going to be short, though the
permissible reaction time for the development arrange is adept to be long.
 Variety of products needed: A cutomers may put a high premium on the
accessibility of all parts of a crisis repair arrange from a solitary provider.
This may not be the situation for the development arrange.
 Service level required: A customers submitting a crisis request expects an
abnormal state of item accessibility. This client may go somewhere else if
all parts of the request are not quickly accessible. This isn't well-suited to
occur on account of the development arrange, for which a long lead time is
likely.
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 Price of the product: The customers submitting the crisis request is well-
suited to be significantly less delicate to cost than the client submitting the
development request.
 Desired rate of innovation in the product: A customers at a top of the line
retail chain expect a ton of advancement and new outlines in the store's
attire. Clients at Walmart might be less touchy to new item advancement.
Every customer in a specific portion will have a tendency to have comparable
necessities, though clients in an alternate portion can have altogether different
requirements. Despite the fact that we have depicted a few traits along which client
request changes, our objective is to distinguish one key measure for joining these
characteristics. This single measure at that point characterizes what the store
network ought to do especially well.
Implied Demand Uncertainty. At first glance, it might create the impression that
each of the client require classes ought to be seen in an unexpected way, yet in a
central sense, every client need can be converted into the metric of suggested
request vulnerability, which is request vulnerability forced on the store network due
to the client needs it looks to fulfill. Request vulnerability mirrors the vulnerability
of client interest for an item. Inferred request vulnerability, interestingly, is the
subsequent vulnerability for just the bit of the request that the store network intends
to fulfill in view of the properties the client wants. For instance, a firm providing
just crisis orders for an item will confront a higher suggested request vulnerability
than a firm that provisions a similar item with a long lead time, as the second firm
has an open door to satisfy the requests equally finished the long lead time. Another
representation of the requirement for this refinement is the effect of administration
level. As a supply chain raises its level of administration, it must have the capacity
to meet an increasingly elevated level of genuine request, constraining it to get
ready for uncommon surges sought after. In this way, raising the administration
level expands the inferred request vulnerability despite the fact that the item's
fundamental request vulnerability does not change. Both the item request
vulnerability and different client needs that the production network tries to fill
influence suggested request vulnerability. As every individual client require adds
to the inferred request vulnerability,
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Step 2, Understanding the Supply Chain Capabilities and provide some
definitions. Supply chain responsiveness includes a supply chain’s ability to do the
following:
 Respond to wide ranges of quantities demanded
 Meet short lead times
 Handle a large variety of products
 Build highly innovative products
 Meet a high service level
 Handle supply uncertainty
These capacities are like a considerable lot of the attributes of interest and
supply that prompted high inferred vulnerability. The a greater amount of these
capacities a production network has, the more responsive it is. Responsiveness, be
that as it may, includes some significant pitfalls. For example, to react to a more
extensive scope of amounts requested, limit must be expanded, which builds costs.
This expansion in cost prompts the second definition: Supply chain proficiency is
the backwards of the cost of making and conveying an item to the client. Increments
in cost bring down productivity. Least cost is characterized in view of existing
innovation; few out of every odd firm can work on the productive wilderness, which
speaks to the costresponsiveness execution of the best supply chains. A firm that
isn't on the proficient wilderness can enhance the two its responsiveness and its cost
execution by pushing toward the effective boondocks. Conversely, a firm on the
proficient outskirts can enhance its responsiveness just by expanding cost and
winding up less effective. Such a firm should then influence an exchange to off
between proficiency and responsiveness. Obviously, firms on the effective
wilderness are additionally ceaselessly enhancing their procedures and changing
innovation to move the proficient boondocks itself. Given the exchange off amongst
cost and responsiveness, a key vital decision for any store network is the level of
responsiveness it tries to give. Supply chains extend from those that emphasis
exclusively on being receptive to those that attention on an objective of delivering
and providing at the most reduced conceivable cost.
Step 3 is to Achieve the strategic fit. In the wake of mapping the level of
suggested vulnerability and comprehension the inventory network position on the
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responsiveness range, the third and last advance is to guarantee that the level of
production network responsiveness is predictable with the suggested vulnerability.
The objective is to target high responsiveness for a production network confronting
high suggested vulnerability, and productivity for a store network confronting low
suggested vulnerability.
2.3 Developing the Supply Chain for Strategic Fit
According to Rao (2006), fitting the store network requires sharing activities
for a few connections in the production network, while having separate tasks for
different connections. The connections are shared to accomplish most extreme
conceivable productivity while giving the fitting level of responsiveness to each
portion. For occasion, all items might be made on a similar line in a plant, yet items
requiring an abnormal state of responsiveness might be dispatched utilizing a quick
method of transportation, for example, FedEx. Items that don't have high
responsiveness needs might be sent by slower and more affordable means such as
truck, rail, or even ship. In different examples, items requiring high responsiveness
might be made utilizing an adaptable procedure, though items requiring less
responsiveness might be fabricated utilizing a less responsive yet more productive
process.
The concept of developing to achieve strategic fit is important in industries
such as high-tech and pharmaceuticals, in which development is basic and items
travel through an existence cycle. Let us think about changes popular and supply
attributes over the life cycle of an item. Toward
the beginning stages of a product’s life cycle:
1.Request is exceptionally dubious, and supply might be predictable.
2. Edges are frequently high, and time is critical to picking up deals.
3. Item accessibility is critical to catching the market.
4. Cost is frequently an optional thought.
Consider a pharmaceutical firm presenting another medication. Beginning
interest for the medication is exceptionally unverifiable, edges are commonly high,
and item accessibility is the way to catching business sector share. The early on
period of an item's life cycle relates to high inferred vulnerability, given the appeal
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vulnerability and the requirement for an abnormal state of item accessibility. In such
a circumstance, responsiveness is the most essential normal for the inventory
network. As the item turns into a ware item later in its life cycle, the request and
supply qualities change. at this stage, it is typically the case that:
1. Request has turned out to be progressively sure, and supply is
unsurprising.
2. Edges are lower because of an expansion in focused weight.
3. Cost turns into a critical factor in client decision.
2.4 Supply Chain Drivers and Metrics
In order to understand how a company can improve their supply chain

performance in terms of responsivenessand efficiency, severals things can be
checked like the logistical and cross -functional drivers of supply
chain performance facilities, inventory, transportation, information, sourcing and
pricing. The major drivers for the Supply chain performance consists of three
logistical drivers and three cross-functional drivers. The logistical drivers consist
of facility, transportation, and inventory, while the cross-functionall drivers consist
of information, sourcing, and pricing. A company’s supply chain have to achieve
the balance between responsiveness & efficiency in order to meet the needs of the
company competitive strategy.
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Figure 2.1 Drivers of Supply Chain Performance
2.4.1 Facility
Facility is the physical locations in the supply chain network where the
products are stored, assembled or fabricated. There two major types of facilities,
which are Production sites (factory) and storage sites (warehouses). Factory can be
built to accomodate two kinds of aproaches in manufacturing. The first is product
focus, where factory that takes a product focus performs a range of different
operations required to make a given product line from fabrication of different
product parts to assemble these parts. The second is functional focus, which
concentrates on performing just a few operations such as only making a selected
group of parts or doing only assembly.
There are three kind of aproaches in warehousing, such as Stock Keeping Unit
(SKU), Job Lot Storage, and Crossdocking. Stock Keeping Unit is the approach
where all of a given type of product is stored together. The Job Lot Storage is the
approach where all the different products related to the needs of a certain type of
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customer or related to the needs of a particular job are stored together. Finally the
Crossdocking is the approach where the product is not actually warehoused in the
facility, instead the facility is used to house a process where trucks from suppliers
arrive and unload large quantities of different products. These large lots will then
be broken down into smaller lots. Smaller lots of different products can be
recombined according to the needs of the day and quickly loaded onto the trucks
that will deliver the product to their final destination. The fundamental trade-off
that managers will face when making facilities decision lays between the cost of
the number, location and type of facilities(efficiency) and the level of
responsiveness that these facilities can provide to the company’s customer.
2.4.2 Inventory
In the Inventory, it will encompasses all the raw materials, work in process, and
finished goods within a supply chain. Changing the inventory policies can
dramatically affect the supply chain’s efficiency & responsiveness. There are three
basic decisions to make regarding the creation and holding of inventory, which are:
1. Cycle Inventory: This is the inventory needed to satisfy the demands for the
product in the period between purchases of the product.
2. Safety Inventory: Inventory that is held as a buffer against uncertainty
condition. If the demand forecasting is done with a perfect accuracy, then
the inventory that can be used is the cycle inventory
3. Seasonal Inventory: This is the inventory that is built up to anticipate
predictable increases in demand that occur at certain times of the year.
2.4.3 Transportation
Transportation is in charge of moving inventory from point to point in the

supply chain . Transportation take form in many combinations of modes and routes,
each with its own different performance characteristics. There are six basic modes
of transportation that a company can choose from, which are:
1. Ship which is a very cost efficient but might also be the slowest mode
of transport. It has a limitation to use between locations that are situated
in waterways & facilities such as harbor & canals.
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2. Rails which is also very cost efficient but can be slow according to the
situation. This mode is also restricted to use between locations that are
linked by rail lines.
3. Pipelines can be very efficient and effective, but are restricted to specific
commodities that are liquid or gases such as water, oil & natural gas.
4. Trucks are a relatively quick and very flexible mode of transportation,
and can go almost anywhere. The cost of this mode is prone to
fluctuations though, as the cost of fuel fluctuates and the condition of
road varies between places.
5. Airplanes are a very fast mode of transport and can be very responsive.
This mode is also very expensive mode and is limited by the availability
of appropriate airport facilities, and the weather can also affect this
mode.
6. Electronic transport is the fastest mode of transport, flexible and very
cost efficient. However , it can be only be used for movement of a certain
specific type of products such as electric energy, data, & products
composed of data such as music, pictures & text.
2.4.4 Information
Information can serve as the connection between various stages of a supply

chain, allowing them to coordinate and increase the maximimum total supply chain
profitability. It is also crucial to the daily operations of each stage in a supply chain,
for example, a production scheduling system. Information is used for the following
purpose in a supply chain :
1. Coordinating the daily activities related to the functioning of other supply
chain drivers, like facility, inventory and transportation.
2. Forecasting and planning to anticipate and fulfill future demands. Available
information can be used to make tactical forecasts to guide the setting of
monthly or quarterly production schedules and time table.
3. Enabling technologies, in which many technologies exist to share and
analyze information in the supply chain. Managers must decide which
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technologies to use and how to integrate and operate these technologies into
their companies like internet, ERP, and RFID.
2.4.5 Sourcing
Sourcing is the set of business processes that is required to purchase goods and
services. Managers must first decide which tasks will be prioritized , which one to
be outsourced, and those that will be performed within the firm. There are two
components of sourcing decision, which are:
1. In-House or outsource: The most significant sourcing decision for a firm
is whether to perform a task in-house or outsource it to a third party, and
this decision should be driven in part by its impact on the total supply
chain profitability.
2. Supplier selection: It must be decided based on the number of suppliers
that will have for a particular activity. The criteria along the suppliers
will be evaluated and how they will be selected is through direct
negotiations or resort to an auction.
2.4.6 Pricing
Pricing will determine how much a firm will charge for their goods and services
that is available in the supply chain. Pricing will affects the buyers behaviour
towards the good or services, thus also affecting supply chain performance, for
example, if a transportation company varies its charges based on the lead time
provided by the customers, it s very likely that customers who value efficiency will
order early and customers who value responsiveness will be willing to wait and
order just before they need a product transported. This will directly affects the
supply chain in terms of the level of responsiveness required as well as the demand
profile that the supply chain attempts to serve. Pricing is also used as a leverage that
can match supply and demand.
2.5 Designing Disrtribution Networks and Applications to Online Sales
2.5.1 Definition of Distribution
According to Chopra ( 2016), Distribution is the steps taken to move and store
a product from the supplier stage to the customer stage in a supply chain process.
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The distribution can drives profitability by affecting chain and cost and the
customer experience and the choice of distribution network can acheive supply
chain objectives from low until high responsiveness.
Distribution network in supply chain performance is evaluated along two
dimensions, which are :
1. Customer needs that are met
After a customers need is met, evaluate the impact on customer service and
cost for different distribution network options
2. Cost of meeting customer needs
The profitability of the delivery network will be determined by revenue
from met customer needs and network costs
2.5.2 Factors that Influence Distribution Network Design
There are several elements of customers service that is influenced by network,

such as :
-Response time
-The variety of Product
-The availability of Product
-Customer experiences
-Time to market
-Order visibility
-Return ability
The cost supply chain is affected by several network structure, such as :

1. Inventory
Lower the cost because of aggregation. The benefits of aggregation are the
highest for the low-demand but high value item. Benefits are large if the
product customization can be delayed or postponed at the manufacturer.
2. Transportation
The cost of transportation may differ according to distance and disaggregate
shipping.
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3. Facilities and Handling
The cost can be lower because of aggregation. Some of cost can be saved
on handling cost if manufacturer can manage small shipments or ship from
product line.
4. Information
It may affect cost by significant investment in information and infrastructure
to intergrate manufacturer and retailer.
2.5.3 Design Options for a Distribution Network.
There are six design for a distribution network that can be used, which are :
 Manufacturer storage with direct shipping

In this option, the product is shipped directly from the manufacturer to the
end customer, by passing the retailer.
Figure 2.2 Manufacturer Storage with Direct Shipping
 Manufacturer storage with direct shipping and in-transit merge.

Different from drop shipping, in transit merge combines pieces of the order
coming from different locations so the customers get the single delivery.
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Figure 2.3 Manufacturer Storage with Direct Shipping and In-transit
Merge
 Distributor storage with package carrier delivery

In this option, inventory is held not by manufacturers at the factory, but by
distributors or retailers in intermediate warehouses, and the carriers are used
to transport products from the intermediate location to the end customer.
Figure 2.4. Distributor storage with package carrier delivery
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 Distributor storage with last mile delivery
This option refers to the distributor or retailer delivering the product to the
customers home instead using carriers.
Figure 2.5. Distributor Storage with last mile delivery
 Manufacturer/distributor storage with customer pick-up

In this option, the inventory will be stored at the manufacturer or distributor
warehouse, but customers place their orders online or on the phone, and
travel to the designated pickup points to collect the merchandise.
Figure 2.6. Manufacturer/distributor storage with customer pick -up
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 Retail Storage with Customer Pickup
This option is the most traditional type of supply chain where inventory is
stored locally at retail stores. The graph is almost the same with
manufacturer/distributor storage with customer pick-up.
Figure 2.7. Retail storage with customer pick-up
2.6 Network Design in the Supply Chain
2.6.1 Decicion Making in Supply Chain Network
According to Chopra (2016), the decisions for supply chain network designs
can be classified as below :
1. Facility Role, What is the role in each facility play ? What are the proccesses
that can be performed in each facility ?
2. Facility Location, Where is the strategic place to locate the facilities ?
3. Capacity Allocation, How much is the capacity that can be allocated in each
facility ?
4. Market and Supply Allocation, What markets that each facility should
serve ? Which supply source should be fed to each facility ?
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2.6.2 Factors Influencing Network Design Decisions
There are several factors that influence the decision making in network
design, such as:
1. Strategic Factor
A good global supply chain networks can support their strategic
objectives with facilities in different countries with different roles. For
example, company A has production facility in Asia and Africa. The
facility in Asia will focus on low-cost standard product, while the
facility in Africa will focus on Specific, trendy product. This way,
company A can produce a wide variety of product in the most profitable
way.
2. Technology Factors
Technology have a significant impact on network design decisions, and
if facilities have lower fixed cost, many local facilities are preffered
because this will help to lower transportation cost. For example, to
reduce transportation cost, company A sets up many facility and each
facility will serve its local market.
3. Macroeconomic Factors
Macroeconomic factors include several economic factors, such as taxes,
tariffs, exchange rate, and shipping cost that are not internal to an
individual firm. Macroeconomic factors have had a significant influence
in the supply chain network,so it’s important that a firm take these
factors into consideration when makin decisions.
4. Freight and Fuel Costs
The fluctuations in freight and fuel cost have a significant impact on the
profits of supply chain because most transportation will need fuel. When
designing supply chain networks, companies must take consideration at
the exchange rate, demands, freight and fuel cost fluctuations.
5. Political Factor
The political stability of a country also plays a significant role in
location choice. Companies will prefer to locate their facilities in a
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country with a stable politics where the rules of commerce and
ownership are well defined.
6. Infrastructure Factor
The availability of good infrastructure in an important factor to locate a
facility in a single area.Poor infrastucture adds to the cost of doing
bussiness from a given location, as so to a good infastucture. Key
infrastucture elements must be considered during network design,
including the availability of sites, labor, terminals, rail service, and other
infrastucture facility.
7. Competitive Factor
Companies must consider the size, stategy, and location of other
competitors when designing their supply chain network. The form of
competition and factors such as raw materials and labor power will
influence this decision.
2.7 Definition of MonsoonSim
MonsoonSim is a business simulation game with educational platform that uses

cloud system for its storage. Players will play in teams and compete against each
other to get the highest profit, and unwittingly will learn to understand business
knowledge that will improve the understanding of players in the ERP concept. The
modules in the game are so many. Which are Finance, Retail, Procurement,
Marketing, Warehouse & Logistic, B2B, Wholesales, Production, Maintenance,
Human Resource, Service Management and etc. MonsoonSim supported and
recommended by SAP Asia Pacific for all universities in Southeast Asia.
2.8 MonsoonSim Player
MonsoonSim is suitable for those who want to gain experience and more
knowledge about how the ins and outs of enterprise management in general, and at
the same time learn the ERP business concept. Most MonsoonSim players are
students, those who have worked, or those who have graduated and want more
knowledge.
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2.9. MonsoonSim Steps
Steps to get started with MonsoomSIM.
1. Register in advance at MonsoonSim.com or Monsoon academy /

game.
2. Request a Gamecode and enter the Gamecode into the box provided.
3. Enter the email address.
4. Asking to the lecturer / assistant lecturer to enter TEAM where
5. It's done.
6. Activate the account and change the password by clicking the link
sent to our email.
7. Follow the next instruction from the Lecturer / Instructor.
2.10 Purpose of MonsoonSim
The purpose of games MonsoonSim is to teaches students to understand

the concept of business processes within a virtual enterprise. In practice there are
many aspects that must be considered for the company to be in line with
expectations. In addition to requiring good teamwork, there are a number of
aspects that need to be addressed: focusing on selling and marketing products,
paying attention to stock or materials availability, penalty fees for delays, rental
fees, and many more aspects to be considered. It is possible to get the highest profit
and unwittingly we will gain more experience and knowledge about the
management of the company in general which will improve the player's
understanding into the ERP business concept.
2.11 Function of Modules
There are several modules in MonsoonSim namely:
o Finance Module (FIN)

In Menu Finance, it can see the company's financial condition.
Accounting → Contains a table that describes the company's financial
condition.
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Each account we can click to see more information.
Cash → Contains the company's "cash on hand" graph, which is money that
can be used to make a purchase transaction. Companies will have difficulty
in buying transactions if cash on hand is low.
Overhead → Is a graph that informs about corporate spending. Can be used
for cost analysis.
o Purchasing Module (PMN)
Outsource Finished Goods → We can buy "finished goods" in this menu.
There will be several vendors inside. Each vendor sometimes has its own
credibility (there are vendors who are on time, some are late in delivering
the goods). They also offer discounts for certain purchase volumes that we
can read at the time of purchase.
Procure Raw Materials → For companies that have purchased machines,
companies can purchase raw materials manually, similar to when
purchasing finished goods, there are some vendors and discounts for
certain purchase volumes.
PO List → All purchasing activities are recorded in this column. We can
approve or reject existing POs. There is a "refresh" button in the upper right
corner.
o Retail Module
Set Price → We can set the selling price of the product. Be careful in setting
the price, because if the price is too high, then there is a possibility that the
product will be difficult to sell, but if you want to lower the price, consider
the cost of our products.
Manage Rental Space → We can set store capacity. Added capacity, as well
as reduced capacity. In addition, there are auxiliary menus in graphical form
that can help you in doing the analysis.
o Warehouse & Logistic Module
Move Stock → We can move goods from warehouse to whole store or move
goods between stores.
Move List → We can see all requests for moving items on this menu. All
goods transfers must be approved in advance to be processed. Schedule
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Auto Replenishment → We can manage the automatic transfer of goods
every stock of the company is on a certain amount.
Stock Remaining Warehouse → We can see the stock conditions in this
menu.
Manage Rental Space → We can set the capacity of the warehouse.
Increase capacity, as well as reduce capacity.
o B2B Module
Show Wholesale Offer → We can see existing offers from various
companies. But note also the price required. Wholesale Order List → On
this menu we will be able to see all the bids that must be approved or
approved. Stock Remaining Warehouse → We can see the stock conditions
in this menu.
o Production Module
Product Order → We can set which products are prioritized to be
manufactured first.
Production by Product → Menu showing production graphs by product.
Production by Machine → Menu showing the production chart of each
machine.
Production Capacity → Graph showing the production capacity each
machine can produce.
Daily Production → Table showing the daily production.
Machines → shows the machine information we have. New machines can
also be purchased through the menu.
2.12 Target
To be able to win the simulation, a company in MonsoonSim must be able to

meet the criteria and targets to be achieved for each factor (financial, customer,
operational, and human resources). The following are the criteria and goals the team
should achieve:
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o Get high profit
This can be obtained when the production runs well, retail has increased and
all modules can run smoothly.
o High cash on hand balance
In this case the success of this simulation is seen from whether the
company has sufficient funds, both to make purchases and pay the costs
incurred. Therefore, do not make too many purchases so cash on hand to be
minus. It can block other processes, so it could cause losses.
o Purchase is done by paying attention to cash on hand
Purchase should pay attention to cash on hand, not to cash on hand to be
minus. Purchases are not perpetually perpetual without limitation, but are
persistent using strategies. If cash on hand minus purchases, sometimes the
company will have constraints because it can not purchase either inventory
or raw material production, especially with a high nominal.
o Production produces good results
It can be seen how many products can be produced by the production
activity. The success must also be followed by an adequate supply of raw
materials owned by the company. So when the company decides to do
production, the company must diligently check the raw material inventory
and make a purchase if necessary.
o Stock in the warehouse is not empty
The winning team should have sufficient stock in the warehouse transfers
on the Retail section of every company-owned store. Sometimes, if the
inventory in the warehouse is empty, it will directly affect the company's
profit. B2B ongoing may experience delays in delivery of goods and
should be subject to late fees that will affect the profit level of the
company.
o Stock in the store sold quickly and filled quickly
SIM simulation can also be said to succeed if the stock turnover in the store
runs quickly and use a reasonable price. For retail sales are not as big as
sales on B2B, but with companies still selling in retail at competitive prices,
it will also increase the company's profit.
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o Purchase according to optimal capacity
Each purchase must pay attention to the capacity of the warehouse or shop,
not to cross the broad boundary, because the cost will arise when the limit
exceeds, thus reducing the company profit. If the company wants to buy
with a high capacity to minimize the possibility of inventory void, the
company can expand in the warehouse area. The expansion is also
required cost that will reduce cash on hand company. So, to do the
expansion, the strategy remains necessary.
If the conclusions drawn from these criteria are the most important are the
criteria number 1 and 2 that is getting a high profit and all problems can be resolved,
and cash on hand balance is not minus. For the number 3 to the last criteria is the
criteria that must be met by each team to achieve the first and second criteria.
Because if all can run optimally and all problems can be overcome then actually the
Team can be said to win in Management Information System Simulation.
Basically, in addition to seen from the profit, the success of a company is also
seen from how good management control is done and how the information system
between each part of workers in the company mutually support and work together.
For example, the strategies in the formulation can run well, all modules can run
well and synergize. This is because each module is interrelated so there needs to be
good control.
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CHAPTER III
DATA COLLECTION AND ANALYSIS
3.1. Initial Information

MonsoonSim is a game with a hundred-percent focus in Integrated Production
System (IPS). This game isn’t give the specific details about IPS concept, but it
gives the general concept of all the entire enterprise operation system. MonsoonSim
will help students to learn about the failure of department can impact to the other
departments.
In this Integrated Production System subject, the class will be divided into 5
groups with 5 members in each group to playing MonsoonSim game. There are four
indicator of scoring for final game such as Cash on Hand, Net Profit, Sales, and
Space Utilization. Cash on Hand has 20 % proportion to the final score. Net profit
has 30 % proportion to the final score. Sales has 30 % proportion to the final score.
Space Utilization has 20 % proportion to the final score. The game was running in
90 days with the holiday day in 7,15,22,28,33,34,35,52,53,54,65,70,71,72,84,85. In
the holiday, the sales will increase from 200 % to 300 %.
The purpose of this game is to gain the highest Cash on Hand with the highest
sales and net profit with the less space of utilization. In order to achieve those goals,
the members should divided the task fairly and keep communicate each other during
the game. There are two important key during play this game such as team work
and communication. Team work is the important key to win this game because the
members should set price in the right time, maintain the space in order to get the
good utilization, maintain the warehouse and move stock in the right time. Thus,
the second important key is communication between departments in order to keep
the price and stocks in the right time.
On this MoonsoonSIM Game, there are one warehouse located in Balikpapan,
and has three retailers which located in Jakarta, Ende and Jayapura. The map will
be shown on the next page, in Figure 3.1.
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Figure 3.1. Location Information
3.2. Job Description and Responsible of Each Member

In order to compete with other team, it is required a good startegies where the
contribution of each member is very important because every decision that each
member made is related to each other. In this simulation game, every member has
their own responsibles and duties.
3.2.1. Kelvin
Kelvin has responsibility to handle retailer located in Jakarta which consist
several duties, such as:
 Handling the Retailer located in Jakarta
Each retailer’city was handled by one person in charge. The given responsibility
to each retailer, such as purchase order to warehouse or vendor and remain the
stock’s availability; set the prices of apple, melon, and orange; and manage the
rental space to improve the utilization.
 Approve the List of Purchases Order (PO)
In method procure end product must be checked to avoid the potential of
missing info concerning to the arrival of order, all of member that handled the
retailed must check PO list daily. The PO list is checked by daily in making
certain the adherence between the product order and inventory level. All the
knowledge that accommodates amount has been order, lead time, and therefore
the arrival of the product is ensured by everybody guilty of their retail.
 Oversee the Forecast Demand List
In process maintaining stock in retailer, there will fluctuative demand from
customers. The forecast demand report was given by the simulation game and based
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on daily demand and holiday. The retailer has responsibility to oversee the forecast
demand list, to keep the stock in retailer when the demand is very high.
3.2.2. Nabila
Nabila has responsibility to handle retailer located in Jayapura which consist
 Handling the Retailer in Jayapura
 Oversee the Purchases Order (PO) List
In process procure finish goods have to be checked to avoid the potential of
missing information regarding to the arrival of material, all of member that handled
the retailed have to check PO list daily. The PO list is checked by daily in ensuring
the adherence between the material order and inventory level. All the information
which consist of quantity has been order, lead time, and the arrival of the material
is ensured by each person in charge of their retail.
3.2.3. Chrisshyaren
Chrisshyaren has responsibility to handle retailer located in Ende which consist
 Handling the Retailer in Ende
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 Oversee the Purchases Order (PO) List
In process procure finish goods have to be checked to avoid the potential of
missing information regarding to the arrival of material, all of member that handled
the retailed have to check PO list daily. The PO list is checked by daily in ensuring
the adherence between the material order and inventory level. All the information
which consist of quantity has been order, lead time, and the arrival of the material
is ensured by each person in charge of their retail.
3.2.4 Tantyo Edo Wicaksana

Edo has responsibility to handle warehouse department and marketing
department with some jobs, which are:
 Managing Warehouse Stocks
As the role of warehouse is as the intermediary between vendor and the retailers
in order to make the company get more profits by purchase the products in large
amounts, there will be so many activities to purchase the products as the stocks
while the logistic department will handle the delivery from warehouse to the
retailers. In other side, the warehouse stocks must be keep above 10,000 units per
product while the maximum capacity of warehouse that regulated by the company
is 50,000 units per product. Thus, the warehouse stocks must be maintained
carefully.
 Buy and Analyze the Marketing Report
In order to know the current situation of market and the competitors, the
marketing report must be bought. It contains product prices that has been set up by
the competitors, and also the situation of market share for each company. Therefore,
the marketing report must be bought periodically which is for each 10 days in order
to make any decision that increase the company’s sales.
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 Make Strategy to Enlarge Market Share
As the marketing report shows the position of each company in the market based
on the unit sold and sales, this information will lead to any strategy to win the
market share. For example, when the unit price for a product in one area is too
expensive than the other companies, then strategy will be reducing the unit price
into a price that can compete with other companies’s unit price while considering
the unit cost and its impact to the unit sold report.
3.2.5 Rivi Sofia Ayu

Rivi has responsibility to handle Logistic department with some jobs, which are:
 Monitoring Stock of Retailer
As the role of logistic is as the intermediary between warehouse and the retailers
in order to make the company get more profits by handling the delivery from
warehouse to the retailers. Logistic should monitoring the stock of each retailer.
Each of retailer’s stocks must be keep under some amount as compatible with their
distance from warehouse to their cities and Logistic will sent the amount of product
that retailer needed in the right time and the right amount. Thus, Logistic should
monitoring the stocks of each area carefully.
 Make Strategy to Move the Stock
Logistic should make a strategy for warehouse and all of the retailers. For
warehouse, logistic also have to monitoring the stock in warehouse. If its already
the due date of games and the rest stock in warehouse still exist. Logistic should
move the stock from warehouse hastily to the retailer that supposing still needed
the stock. For retailers, logistic make a strategy to determine when the right time
and how much the right amount of the stock that can be move to retailer, remaining
the stock in retailer. It can be done with monitoring first the retailer and see what
and where the stock that needed to be sent the stock by logistic.
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3.3. General Strategy
Monsoon Simulation (MonsoonSIM) is a cloud-based business simulation
and experiential learning platform. It is a complete ERP (Enterprise Resources
is all about in the context of the entire enterprise operation. MonsoonSIM present
the closest condition of business environment that is dynamic. Dynamic here means
there are no fixed solutions towards any problem in the real business environment.
MonsoonSIM will help students to learn why the failure of one department can
impact the other departments to the point that it may even bring down the entire
operation of an enterprise. Students will also understand the business concepts,
constraints and inter-departmental relationships. The more the students understand
as they play it the more the students can react to the changing market condition
during the game.

on Hand, Net Profit, Sales, and Space Utilization possible. In order to achieve those
goals, we need to distribute our task fairly and keep communicate during the game.
According to previous trials, the demand for this game is unstable according to
many holidays appeared. Here are our general strategies to win this game:
 Maintain Stock and Retail Price
In term of maintaining the retailer stock we put our concern on the distance
and shipping time between vendor to retail area and warehouse to retail area in order
to decide which one is more beneficial. We purchase big amount of the products to
minimize the purchasing cost per unit since there will be discount for purchasing
the big number of products. We also adjust our retail price based on the demand
and sales. When the demand is rising significantly, the price will be increased to
maintain the inventory while waiting for the stock arrived. We pay attention to our
cash flow since if it is running out, we will automatically make a loan from bank
with 60% interest.
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 Maximizing space utilization by managing area rent.
Space utilization is one of the winning indicators. From our first strategy, we
have to purchase our product relevant to our area rented for both Retailers and
Warehouse. In order to maximize the area rented, we maintain our products not to
exceed our area rented capacity.
 Communication
The most important thing is to communicate and cooperate with our fellow
members. MonsoonSIM is a game where we can play it while learning in such
entertaining way. A clear task distribution would be very helpful. Adjust to the flow
of the game, rather than panic when there is any unexpected condition occur it is
better to analyze and find a way out to solve the problem. Each department has a
different important role, it is just right if each member understands their task and
responsibility properly. We also do the back up when any member overwhelmed
with their task.
3.4. Specific Strategy
To win the competition in the market, the company has own specific strategy,
consist of specific strategy for retailer and procurement department; warehouse and
logistics department; finance department; marketing department.
3.4.1. Retailer and Procurement Department
 Jakarta
Given the five stages of a supply chain as shown in Figure 3.2., all supply chain
processes can be break down into four process cycles, such as customer order cycle,
replenishment cycle, manufacturing cycle, and procurement cycle. Within each
cycle, the goal of buyer is to ensure product availability and to achieve economies
of scale in ordering. Jakarta as one of the company’s retailer, has a key role to
forecast customers orders and reduce the cost of receiving the order. The retailer
should be able to fulfill and maintain the stock on time and improve effciency and
accuracy of the order fulfillment process (Meindl, 2016).
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Figure 3.2. Supply Chain Process Cycles
In purchasing the order to the warehouse/vendor, one important component of

the price is the cost of transportation. The proximity of distance determines the
amount of transportation costs. The closer the distance, the cost of transportation
will be cheaper and also the delivery lead time will be fast. With reduced delivery
lead times, inventory levels can be lowered to a minimal level.
Based on location information shown in Figure 3.3., the shortest road to

Jakarta retailer is Warehouse which located in Balikpapan. So it is better to choose
warehouse as main supplier for retailer. Buying product by warehouse also give
advantages to Jakarta retailer since the price is lower compared to Vendor’s price.
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At the Day 1 of the game, Jakarta retailer purchase orders from vendor 1 as
temporary order, since the warehouse has not stock on the warehouse at the
beginning.
Figure 3.4. Finished Goods Purchase (Day 2)
After the warehouse has purchased and received the order from supplier, and
then warehouse was able to distrbute the stock to retailers. The Jakarta retailer
purchase order to warehouse to remain the stock in lower price and shortest lead
time since Jakarta retailer nearest point to warehouse which located in Balikpapan.
Currently, the rental space of Jakarta is 100 m2. In order to improve the
replenishment inventory from one order to next order, so Jakarta retailer extend the
rental space to 150 m2.
Figure 3.6. Retailer Area Management
In order to refill the stock in Jakarta, one person was incharge on this location.
When the demand is steady, 1 day = 1000 units/day for each product, with Lot Size
= 12,000 units/product, cycle inventory could be calculated as follows:
𝐿𝑜𝑡 𝑆𝑖𝑧𝑒 12,000
𝐶𝑦𝑐𝑙𝑒 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 = = = 6,000𝑢𝑛𝑖𝑡𝑠/𝑝𝑟𝑜𝑑𝑢𝑐𝑡
2 2
𝐶𝑦𝑐𝑙𝑒 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 12,000
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐹𝑙𝑜𝑤 𝑇𝑖𝑚𝑒 = = = 6 𝑑𝑎𝑦𝑠
𝐷𝑒𝑚𝑎𝑛𝑑 2 × 1000
For a lot size of 12,000 units/product, the company has a cycle inventory of
6,000 units/product. The retailer need to purchase when the demand already
achieved a half of inventory, aproximately to 6,000 units/product. The lot sizes and
cycle inventory also influence the flow time of material within the supply chain.
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Average flow time resulting from cycle inventory is 6 days, when the order will be
arrived to the retailer.
Figure 3.7. Replenishment Order in Jakarta Retailer
Pricing is the process by which a firm decides how much to charge customers
for its goods and services. Pricing affects the customer segments that choose to buy
the product, as well as influencing the customer’s expectations. Pricing is also a
lever that can be used to match supply and demand. Short-term discounts can be
used to eliminate supply surpluses. All pricing decisions should be made with the
objective of increasing firm profits (Meindl, 2016).
We have plan to implement everday low pricing to improve the sales from
customers. Each retailer set the lower price compared to other competitor to gain
the market share. As can be seen on Figure 3.8.
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Figure 3.8. Pricing
As can be seen in Figure 3.8. , the price of apple, orange, and melon of our
company is overall slighlty lower than other company, which lead to high sales and
low profit.
Figure 3.9. Final Result of Moonsoon Game
It is impact to the final result, our team win the sales percentage, but the net
profit is quite lower compared to Princess and Winner Team, since our price lower
than their price. Price is very sensitive to the profit and sales, so for next strategy,
we need to set pricing at the right time in order to improve net profit while keep
maintaining the sales.
The retailer also has responsibility to oversee the forecast demand list, to keep
the stock in retailer when the demand is very high. The forecast demand report was
given by the simulation game and based on daily demand and holiday. The retailer
need to keep and remain the stock.
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Figure 3.10. Unit Sold per Day
The information about holidays was given, such as Day

7,15,22,28,33,34,35,52,53,54,65,70,71,72,84,85, on these days, the sales will
increase from 200 to 300%. To fulfill the demand from customers, so the retailer
need to purchase order on time.
Figure 3.11. PO List: Move Stock to Jakarta
As mentioned above that average flow time resulting from cycle inventory is 6
days, when the order will be arrived to the retailer. Since the holiday will be on 84
and 85, so the order should be replaced on Day 79. The warehouse will deliver the
order on schedule and arrived on retailer on time. This become critical point for
retailer in order to keep stock availability and win the market competiveness.
 Jayapura
To ensure the regular availability of the offerings, retailers need to maintain
appropriate levels of inventory on periodic basis to meet the regular or seasonal
fluctuations in demand or usually called as safety inventory. Safety inventory is
inventory carried to satisfy demand that exceeds the amount forecast (Hall, 2001).
Safety inventory is required because demand is uncertain, and a product shortage
may result if actual demand exceeds the forecast demand. Based on this statement
it is very important to maintain the inventory in Jakarta.
One of the important aspects to be considered before purchasing a product from

warehouse or vendors is the transportation cost. The shipment distance would likely
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affect to the cost where the closer the distance will make cheaper cost and faster
delivery lead time.
According location information shown in the figure above, the warehouse is

located in Balikpapan and the distance between the warehouse and retail area
Jayapura is 2656 km which is the furthest among other retail area. Based on the
game trial, it takes around 6 days to complete the delivery from warehouse to
Jayapura. Compare to the vendor, it only takes 3 until 4 days to finish the shipment
to retail area Jayapura. Even though the unit price is more expensive to purchase
from the vendor, it will be approximately the same price from warehouse since
Jayapura will always order in a big amount of product. Thus, Jayapura prefer to
purchase order by itself from the vendor instead of moving stock from warehouse.
The simulation consists of 90 days with 30 seconds per day. The Figure 3.13.
below shows the game initial condition for overall company performance with 5
open modules which are Finance, Procurement, Warehouse/Logistic, Retail, and
Marketing.
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Figure 3.13. Initial Condition
The initial configuration related to the initial condition including the initial area
of each retailer, warehouse, and logistic as well as the over flow charge will be
shown on the figure below.
Figure 3.14. Initial Configuration
On the first day, Jayapura retail area purchase order from VFG2 (Vendor 2).
The retailer chose Vendor 2 because other retailer (Jakarta and Ende) chose from
Vendor 1 and Jayapura has the furthest distance among others retailer. The number
of Finished Goods Purchase for the Day 1 is 12,000 units for each product which
can be seen on the figure below.
The area rented for Jayapura at the initial condition is 100 m2. With the number
of inventories remaining, it would not be enough space when the shipment arrived.
Therefore, Jayapura will have to manage its area rented become 150 m2 to prevent
the overcapacity condition and maximize the area utilization.
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Figure 3.16. Retail Area Management
When the stock is arrived to the retailer, there will be a lot of inventory in the
retail area. In order to achieve our goals to get the highest sales and net profit, we
have to manage our retail price. Before deciding the proper price, we need have
several considerations such as sales demand, competitor price, and cost of goods
sold (COGS).
Figure 3.17. Cost of Goods Sold
Before adjusting retail price, COGS is one of the important considerations

because we can not sell our products under or near to the cos as shown on the Figure
3. . There is an additional information related to holidays which happen on the Day
7,15,22,28,33,34,35,52,53,54,65,70,71,72,84, and 85. During holidays the sales
will increase from 200 to 300%.
Approaching Day 15, the retailer needs to prepare its inventory. Since the
delivery lead time is quite long, Jayapura make a decision to repeat purchase order
once the previous order is arrived to the retail area to prevent stockout. At this
moment, the retailer chose to move stock from warehouse rather than purchase
directly to the vendor because there is still enough stock in the retailer and the
holidays was still one week away.
Figure 3.18. Move Stock (Day 7)
The decision for Jayapura were relatively the same from the beginning of the
game. The crucial decision such as pricing will more likely affect the retail sales.
Therefore, the sales demand and competitor price are affecting a lot in this decision.
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Figure 3.19. Retail Market Demand Forecast (30 Days)
From the Figure 3.19 , it can be seen that during the holidays the demand are
significantly increasing. The retailer has prepared for this condition by maintained
the right amount of inventory to prevent stockout. The pricing is also important to
maintaining the stock, therefore, the competitor price is considered.
Figure 3.20. Jayapura Apple Juice Pricing
Each product has different unit sold and price. Selling the product under the
competitor price will increase the company sales. For Apple Juice, we adjust our
price to be the lowest compare to our competitor.
Figure 3.21. Jayapura Orange Juice Pricing
For Orange Juice, we set the price almost similar to our competitor and we
reach the highest average sales compare to our competitor. High sales are not
always a good thing. In this case, since the price is quite low, we gain a low profit
in respect.
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Figure 3.22. Jayapura Melon Juice Pricing
The daily retail sales represent purchases of finished goods and services by
customer. It can be used to monitor the market based on retail area and product
type. This daily retail sales information was given by the game. To make the right
decision, it is also an important consideration.
Figure 3.23. Daily Retail Sales
Unit sold per day represent the number of products that have been purchased
by customer in daily basis. It is showing the market demand based on the product
and also its retail area to keep the stock in a rational rate.
Figure 3.24. Unit Sold per Day
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The number of remaining inventories shows how much stock we have at our
retail are that are not already sold to our customer. This number were documented
on the end of each day.
Figure 3.25. Inventory Remaining
 Ende, Nusa Tenggara Timur (NTT)
The retail and procurement department strategy consist of some aspects such as
the shipment distances between warehouse and Ende and the distances between
vendor and Ende. The strategy is considering about the distance between the retail
and vendor/warehouse. It will give the impact to the cost of transportation because
the proximity of distances determines the amount of transportation cost, maintain
and [move the stock to the retail and maintain the inventory levels based on the lead
times.
Based on the figure 3.26., the distance between warehouse (Balikpapan) and
Ende is 1000 km. It means Ende has the closer location with the warehouse. Then,
the good strategy is better to deliver the stock through the warehouse than the
vendor. Buying product by warehouse also give advantages to the Ende retailer
since the price is lower compared to Vendor’s price.
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First day of the game, Ende retailer purchase orders from vendor 1 as temporary
order because the warehouse has no stock at the beginning. The first order, Ende
purchased order 12,000 stocks for apple, orange and melon.
Figure 3.27. Finished Goods Purchase for Ende
In the next day, Ende retailer moves 10,000 stocks for apple, orange, and melon
from warehouse if the stocks in the retailer left 10,000 stocks each fruit. The Ende
retailer purchase order from warehouse to remain the stock in the lower price
because the shortest lead time since Ende retailer nearest point to warehouse which
located in Balikpapan. Based on the figure below, it can be seen that deliver the
product from vendor is higher than from warehouse.
Figure 3.28. Move Stock for Ende
The number of stocks depends on the day. The number stock in the usual day
and holiday will be different. The information about holidays was given, such as
Day 7,15,22,28,33,34,35,52,53,54,65,70,71,72,84,85. On these days, the sales will
increase from 200 % to 300 %. It means the number of stock in holiday will higher
than usual, especially in day 33,34,35 and 70,71,72 because 3 days holiday. It can
be seen based on the Figure 3.28.. The team should considering the cost based on
the holiday. The stock in retailer will increase from 10,000 stocks to 20,000 stocks.
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Figure 3.29. Detail Retail Sales.
The stocks will give the impact to the rental space. The higher stocks in retailer
means the higher rental space. Currently, the rental space of Ende is 100 m2. In
order to improve the replenishment inventory from one to another next order, so
Ende retailer extend the rental space to 150 m2. The team should set the rental space
in the right amount because the larger rental space takes the more rental space price.
Based on the figure below, the rental space of 150 m2 takes 7,500 SGD each day.
Figure 3.30. Rental Space
The other aspect related with the retail and procurement department is pricing.
The pricing must be set in the right time based on the market share. Pricing is
important aspect because very sensitive to the profit and sales. The plan is set the
low price in order to gain the higher sales. Each product sell with the lower price
compared to other competitor to gain the market share.
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Figure 3.31. Apple’s Price of Ende
Figure 3.32. Orange’s Price of Ende
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Figure 3.33. Melon’s Price of Ende
Based on Figure 3.33., it can be seen the price of apple, orange, and melon at
Ende retailer is slightly lower than the other competitor, which lead to high sales
and low profit.
Figure 3.34. Final Result of MonsoonSim Game
As the mention before, pricing is the important aspect because very sensitive to
the profit and sales. Thus, it gives the impact to the final result. Based on the figure
above, the team win the sales percentage because the price is very low than the other
competitive. On other hand, the net profit is quite lower than the other competitor
because the price is set in the low area. Because the net profit is low, it will give the
impact to the Cash on Hand. If compared with Princess’s team, the net profit and
cash on hand is slightly different. In our team, the utilization is also good since the
utilization percentage is 28.40 %.
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Figure 3.35. Retail Market Share (Accumulated)
Based on the figure below, it can be seen that our team win the market share
even only 0.01 %. Even the sales is high, but still the net profit is low because the
low pricing. Thus, the next strategy that will be implemented is set the pricing in
the right time in order to improve the net profit while keep maintaining the sales.
The second strategy recommendation is the member should considering which the
highest aspect gives the large cumulative to the score.
Figure 3.36. Sales Market Share (Accumulated)
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3.4.2. Warehouse and Logistics Department
A. Warehouse Strategy
Warehouse is the place to store the products to prevent any stock out in the
retailers. It is located in Balikpapan city, Kalimantan. As the capacity of retailer is
smaller and more expensive to be rent, warehouse has big role to store the rest
products in the big amount as the source for the retailers to get the products in
ensured arrival time. It is because the delivery time from the vendors cannot be
make sure to come on time to the retailers. Through the warehouse, the company
can get more profits by the discount that given from the vendor. Not only better
profits, but the company also able to reduce the product price to lead the market
while the profits that taken also still bigger than the initial condition. As how
important the warehouse role, there are three strategies that implemented by the
company.
1) Manage Warehouse Space Utilization

This strategy is very important to make the company use the warehouse capacity
in efficient way. As the initial warehouse capacity is 1000 m2 that can save 300,000
units product, it is can caused big holding costs for the entire game while each
retailer usually only needed 30,000 units to be sent for each request. Especially if
the company has high cost to invest the warehouse space in the beginning, then
there will be possibilities for company to have lower cash on hand than the other
companies. Thus, company only needed 500 m2 that can save 150,000 units of all
products or 50,000 units per product for the entire of the game. It can be seen on
the figure below about the decision of the company to change the rental space of
the warehouse in the beginning of the game.
Figure 3.37. Decision Record of Reducing Warehouse Rental Space into

Half
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Based on the figure above, it can be seen that start from day 2, the company
only invested 5,000 SGD each day to rent the warehouse with 500 m2 capacity. It
is the most efficient warehouse space for the company that usually purchased
40,000 units for each product or 120,000 units product for all products per order. It
is the largest units from the vendor that can be purchased with 500 m2 warehouse
capacity, and it is enough to be sent to all of retailers with 10,000 units per product
for each retailer while having 10,000 units left of each product as the safety stocks.
In the figure below, here the example in the PO list about purchasing the products
from the vendor to the warehouse.
Figure 3.38. PO list of Product Purchase for Warehouse Stock 1
Based on the figure above, it can be seen that the company purchased 40,000
units per product as the warehouse stock that will be ready delivered to the retailers
in order to prevent any stock out. In the figure above, it seems that the products
arrived to the warehouse in 3 days as the lead time while the estimated lead time
from the vendor is 1 day. As the delivery time from the vendor is proven very
uncertain, the company decision to use warehouse as an intermediary between
vendor and retailers than the direct purchase by the retailers become more
undeniable.
Sometimes, the company purchased 30,000 units than 40,000 units per product
for the warehouse stock in some situation. It is because the total stocks in the
warehouse already 20,000 units (usually 10,000 units left as each retailer requested
10,000 units while the stocks were 40,000 units per product). This decision is
acceptable for all of the members of the company since the total stocks after
additional 30,000 units per product will not above 50,000 units as the limit of
warehouse capacity. This decision can be seen on the figure below.
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Figure 3.39 PO list of Product Purchase for Warehouse Stock 2
In the figure above, it is the last purchase by the company to fill the warehouse
stocks. Where the products arrived on day 76 which is 14 days left until the game
is finished. It is one of the company decisions because the company didn’t want to
see any stocks left when the game is finished. Not only to minimize any waste, the
company also want to minimize the rental cost of warehouse for further days. Thus,
when the warehouse stock is empty after being delivered to the retailers, then the
company doesn’t need to rent any warehouse space so the rental space of warehouse
will be zero. It can be seen on the figure below.
Figure 3.40 Decision Record of Reducing Warehouse Rental Space into

Zero
Based on the figure above, it can be seen that start from day 83, there is no rental
cost from warehouse. It makes efficiency for the warehouse utilization and it cuts
the cost around 35,000 SGD.
2) Get the Largest Discount

This second strategy is very important for the company to press more unit costs
and get more profits from the discount that given by the vendors. This strategy is
very basic for most companies by purchasing more unit products. The more units
that purchased, the more given discount for each unit cost. Thus, the company aims
the largest discount by purchasing each product 30,000 units and more. The
discount and the unit cost for each product can be seen on the figure below.
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Figure 3.41. Purchase Regulation by each Vendor
Based on the figure above, it can be seen that both vendors have same
regulations including the given discount. As the maximum discount per unit is 20%,
so the company will always purchase each product in amount 30,000 units and
maximum is 40,000 units as the capacity of the warehouse is 50,000 units per
product and there is no 50,000 units as the amount option to purchase the product
from the vendor. But, most of purchase activity do the purchase to the vendor with
amount 40,000 units per product as 30,000 units for retailers, and 10,000 units as
the safety stocks. The usual warehouse situation after the stock in can be seen on
the figure below.
Figure 3.42. Warehouse Situation After Every Stock In
Based on the figure above, it can be seen that when the purchased stock is
coming to the warehouse, the used area will be 396 m2. It is already the most
efficient condition for the warehouse for its utilization rate and also for its rental
cost.
3) Having Safety Stocks
This third strategy is very common for any companies that want to prevent any
stock out so the company regulates it too. As the delivery time from the vendor is
proven very uncertain and also there will be some human error by the staff if late
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to purchase the products for the warehouse stocks, the company initiates to have
safety stocks for the warehouse to prevent any stock out that caused by both
problems. As the company usually purchases 40,000 units of each product for the
warehouse stock and each retailer usually asks 10,000 units of each product to be
delivered, then the minimum stock that must be saved in the warehouse is 10,000
units. Then, the company must purchase the products quickly to fill the stock. This
situation can be seen on the figure below.
.
Figure 3.43 Warehouse Situation with Safety Stock
Based on the figure above, it can be seen that in the day 39 the left stock for
each product were different. But, all of the product stocks already almost reach
10,000 units. In this situation, the company must purchase the products for the stock
before any retailers ask to deliver the products. This strategy is very helpful as a
warning for the company to fill the stock and try to prevent any bad situation caused
by a sudden request from the retailers.
Most of these three strategies are successfully implemented. But, there are
some situation that the retailers must purchase directly to the retailers because of
the warehouse still waiting for its stock while the retailers request more unit
products to face the holidays sales. In the end of the game, the company become
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number one in warehouse utilization because of the implementation of these
strategies.
4) Logistic Strategy
Logistic should have a strategy that related with warehouse strategy, therefore
warehouse and logistic in the same area department. Logistic should always see the
stock in the warehouse. The stock in the warehouse is should not empty. The
winning team should have sufficient stock in the warehouse transfers on the Retail
section of every company-owned store. Sometimes, if the inventory in the
warehouse is empty, it will directly affect the company's profit. Move Stock is used
to move the product from warehouse to one city to each city. In the simulation, there
are 3 cites, which is Ende, Jakarta and Jayapura. The distance between Balikpapan-
Warehouse to Ende is 1000km and for Balikpapan to Jakarta is 1237km and the last
is the distance from Balikpapan to Jayapura is 2656km. Therefore, the longest time
for delivery the product is Jayapura.
Figure 3.44. Map
The strategy that logistic used is when Ende stock is already touch the number
10000, logistic will move the stock from Balikpapan-warehouse to Ende 10000 for
each juice. For Jakarta, same with Ende. Logistic will move the stock from
warehouse to Jakarta 10000 or if there is juice that looks fast to sold, logistic will
move the stock to that juice 12000 to Jakarta. And for the Jayapura, because the
distance is far from warehouse and its takes until 6 days to complete the deliver
stock, logistic sent 15000 for each juice. The most important thing is logistic have
to stock in the store sold quickly and filled quickly the stock. Do not forget to check
the move list, move list is used to see all of the request move stock. And the move
stock should be approved first to be processed. In the last day, logistic have to move
the stock to each city that needed.
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3.4.3. Accounting and Finance Department
Accounting activities can generally be classified as either financial accounting
or managerial accounting. Financial accounting consists of documenting all the
transactions of a company that have an impact on the financial state of the
organization and then using those documented transactions to create reports for
investors and external parties and agencies. (Wagner, 2013)
Common financial statements include balance sheets and income statements.
The balance sheet is a summary of account balances which consist of assets,
liabilities, and equity. Income statement show the company’s revenue and expenses
and the profit or loss for a period of time. Below are shown the income statement
and balance sheet of the company in 90 days.
Figure 3.45. COGS
Figure 3.45 above shown the Cost of Goods Sold of each product. In order to
receive profit, the selling price shoul be greater than COGS. Pricing system is plays
key role here to set the price at the right time, right place, and right price.
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Figure 3.46. Income Statement
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As can be seen in Figure 3.46., the sales which come from Jakarta retailer,
Ende retailer and Jayapura retailers, the total sales is 39,257,206. In each retailers,
overall has same volume of sales. And then the COGS is 22,709,694. The gross
profit was calculated by formula below:
𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡 = 𝑆𝑎𝑙𝑒𝑠 − 𝐶𝑂𝐺𝑆
𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡 = 39,257,206 − 22,709,694 = 16,547,512
And then the gross profit will be deducted by expenses, such as salary,
marketing, rental, overflow warehouse, overflow rental, and logistic expenses. For
all expenses, the overflow warehouse and overflow rental could be eliminated by
maintaining the stock in inventory and place order in right quantity, right time,and
right place. It is approximately cause overflow expenses as much as 109,000.
After the Gross profit deducted by all expenses, the Net profit is 12,384,917.
Hopefully for nex game, the company improve the net profit by managing the price
at the right time and place; managing the flow of stock in warehouse and retailer to
prevent the overflow cost and maximize the utilization of rental space in each
retailer. Based on the final result below, the company win the sales, but low in net
profit which caused by lower price compared to other competitors.
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Below are shown the balance sheet of this company. As can be seen below, there are still inventory asset at the end of 90 days, which is
1,179,216. This can be further improvement and suggestion, to sell all the products when the game is already near reached end of the game,
to convert it to cash on hand. So at the end of the game, all inventory is near to zero inventory. The total assest is 15,884,917 and the total
liabilties and equity is 15,884,917, so it is already balanced.
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3.4.4. Marketing Department
Marketing Department has important role to monitor the actual condition in the
market and lead some decision for the company to take any actions in order to win
the market and get more sales for example asked the retailers to do some price
changes in order to lead the market. As the marketing role is very important, there
are two strategies that had been done by Marketing Department.
A. Buy Marketing Report Periodically

Marketing report is very important because it contains the actual condition of
competitors products price. Not only that, there are also some information regarding
the actual sales between each company and also the rank of each company related
with sales. The marketing report can be seen on the figure below.
Figure 4.49. Sales and Unit Sold Report in Marketing Report
Based on the figure above, it can be seen that marketing report shows the actual
condition of market share based on the sales and unit sold. The blue colour shows
this company’s market share. Based on the marketing reports, this company leads
the market share for most days. Not only showing the sales and unit sold, but it also
shows the product prices for every product in every area. That is why the company
able to control the product price by keep as the lowest price, so the customers will
move and buy our products. As the marketing report is very useful for the company,
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so the company always buy the marketing report for every around 10 days with cost
20,000 SGD for each time buy the report. That is why our market share still in our
control. It can be seen on some decision records on the figure below.
Figure 3.50 Decision Record of Buy Marketing Report in Day 6
The activity of buy the marketing report still done until Day 79, where in the
Day 89 is close to the last day of sales so it doesn’t need to buy the marketing report.
B. More Marketing Investment in Crucial Condition

This strategy only used in the last 12 days after the company bough the last
marketing report. In the last marketing report, it seems that the market shares
between each company is very close to each other. In the other side, there will be
the highest demand of the entire period that occurred in day 84 and day 85. This
situation can be seen on the figure below that taken from forecast report.
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Figure 3.54. Forecast Report for Day 64 until Day 95
Based on the figure above, it can be seen that the highest demand will be
occurred in Day 84 and Day 85. So, in order to win the market share and also sell
more unit products, the company did some marketing investment to promote the
products. For the company, this last 12 days is very crucial to lead the market and
win it. That is why this investment will be used to promote the product by using
media A, B, and C. The information of the marketing investment can be seen on the
figure below.
Figure 3.55. Marketing Investment Information
Based on the figure above, it can be seen that the company used media A to
promote the products that sold by the retailer in Jakarta area, while media B and C
were used to promote the retailers in Ende and Jayapura area. The marketing
investment in each product and in each area were same which was charged 400
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SGD/day. Thus, in one day the company invests 3600 SGD to promote all of the
products in the three retailers. This strategy is started to be implemented from Day
79, it can be seen on the figure below.
Figure 5.56. Decision Record of Marketing Investment
Based on the figure above, it can be seen that this strategy started used by the
company on Day 79. Thus, the total of marketing investment that had been done
until Day 90 as the last day was 43,200 SGD for the last 12 days.
3.5. Evaluation of the Game

At the end of this report, the company evaluate the performance to find out the
reasons why win/lose, and prepare for next strategy.
3.5.1. Why You Lose/Win
The game was run for 90 days with 30 second per day. There are 4 main
indicators of scoring for this Mid-term simulation game which are Cash on Hand
(20%), Net Profit (30%), Sales (30%), and Space Utilization (20%).
Figure 3.57. Scoring Indicators
According to the scoring indicators, at the end of the game, our group (Team
Auto A) finish at the 2nd place among 4 groups with the total score 86.11 with the
percentage detail as shown on the figure below.
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Figure 3.58. Game Result
In terms of Cash on Hand, our group had reach 14.07% out of 20% with total
amount of SGD 14,705,701. Cash on hand refer to the total amount of any
accessible cash. The percentage 14.07% shows how efficient we use our Cash on
Hand through the whole game.
Figure 3.59. Cash on Hand

The next indicator would be Net Profit. Net profit represents the number
of sales dollars remaining after all operating expenses, interest, taxes and
preferred stock dividends (but not common stock dividends) have been deducted
from a company's total revenue. In this case, we only able to maximize our net
profit at rate 22.04% out of 30% from SGD 12,384,917. This condition happened
since we made decision to always reduce our price under competitor price in
relevant to maximize our sales since we have enough remaining stock. This strategy
could not be considered as succeed since if we have low net profit, the gap between
sales and net profit is quite huge.
Figure 3.60. Net Profit

Sales are activities related to selling or the number of goods or services sold in
a given time period. We reached the perfect percentage of 30% with the amount of
sales at the Day 90 is SGD 39,257,206. Our sales were the highest among
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competitors. This situation happens since we always reduce our cost which affect
to our market sales.
Figure 3.61. Sales
The last scoring indicators is Space Utilization. It is present how well we

manage our rental space. We also reached a perfect percentage of 20% which also
the highest among competitor. We could achieve this because we really concern
towards our space utilization since the beginning of the game. We always tried to
maximize our area rent by purchasing the right amount of stock continuously.
Another strategy that we use is not to rely on only one distribution network
(either from distribution center in Balikpapan or directly from vendors). The team
is trying to combine both and make direct shipping from vendors to retails became
the backup in case there are late deliveries from the distribution centers.
At the starting of the simulation, the warehouse was used to purchase goods in
quantity discounts and the space was reduced to 500 m2. After the game reaches
day 80, the stocks are moved to the retails and no more space of warehouse are used
until the game is finished to maximize the space utilization, net profits and cash on
hand.
Last, by building good coordination between operators in all department, this
team can maintain their inventory in each retailer and warehouse, and increasing
their profit, sales, and cash on hand by implementing revenue management through
price setting in order to achieve maximum profit for the company.
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3.5.2. Next Strategy
In order to win the market competition, for further strategies are created to
increase the net profit, cash on hand, sales, and utilization, such as belows:
 Implement good pricing and not too low price in order to increase the profit
while using marketing report to see the competitor price.
 Keep the stock available in each retailer, but still in rented area to prevent
overflow cost. At the end of the game, all inventory in warehouse and
retailer should be decreased to zero inventory, in order to convert it to cash
on hand and profit.
 Do control and checking towards every PO List to make sure all of
transaction has been approved.
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CHAPTER IV
CONCLUSIONS AND RECOMMENDATIONS
4.1 Conclusion
Monsoon Simulation (MonsoonSIM) is a cloud-based business simulation and
experiential learning platform. It is a complete ERP (Enterprise Resources
is all about in the context of the entire enterprise operation.
on Hand, Net Profit, Sales, and Space Utilization possible. The result of this game,
the company gain the Net profit is 12,384,917, and win the 2nd Rank over team
Class 1, Industrial Engineering Batch 2015, President University.
4.2 Recommendation
Based on the final result, the company win the sales, but low in net profit which
caused by lower price compared to other competitors. Hopefully for next game, the
company may able to improve the net profit by managing the price at the right time
and place; managing the flow of stock in warehouse and retailer to prevent the
overflow cost and maximize the utilization of rental space in each retailer.
74 | P a g e
REFERENCES
Hall, S. C. (2001). Supply Chain Management: Strategy, Planning and Operation.
Meindl, S. C. (2016). Supply Chain Management. United States: Pearson.
Wagner, E. M. (2013). Concepts in Enterprise Resource Planning. United States:
Cengage Learning.
Agus, A. (2015). Supply Chain Management: The Influence of SCM on Production
Performance and Product Quality. Journal of Economics, Business, and
Management Vol. 3 No. 11, 1046-1053
75 | P a g e

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MOONSOON SIMULATION GAME

10/22/2018 MID PROJECT

Subject : Integrated Production System (IPS)

Lecturer : Johan K. Runtuk, M.T.

Monsoon Simulation (MonsoonSIM) is a cloud-based business simulation and

Keyword: MoonsoonSIM, ERP, Integrated Production System, General Strategy,

Cikarang, 22 October 2018

TABLE OF CONTENTS ........................................................................................ 3

LIST OF FIGURES ................................................................................................ 5

1.1. Problem Background ................................................................................ 8

LITERATURE STUDY ........................................................................................ 10

2.1 Definition of Supply Chain Management ................................................... 10

DATA COLLECTION AND ANALYSIS ........................................................... 34

3.1. Initial Information ...................................................................................... 34

CONCLUSIONS AND RECOMMENDATIONS ............................................... 74

4.1 Conclusion .................................................................................................. 74

Figure 2.1 Drivers of Supply Chain Performance ................................................. 18

Figure 2.2 Manufacturer Storage with Direct Shipping ........................................ 23

Figure 2.4. Distributor storage with package carrier delivery .............................. 24

Figure 2.5. Distributor Storage with last mile delivery ......................................... 25

Figure 2.6. Manufacturer/distributor storage with customer pick-up ................... 25

Figure 2.7. Retail storage with customer pick-up ................................................. 26

Figure 3.1. Location Information .......................................................................... 35

Figure 3.2. Supply Chain Process Cycles ............................................................. 41

Figure 3.3. Location Information .......................................................................... 41

Figure 3.4. Finished Goods Purchase (Day 2) ...................................................... 42

Figure 3.5. Finished Goods Purchase (Day 9) ...................................................... 42

Figure 3.6. Retailer Area Management ................................................................. 42

Figure 3.7. Replenishment Order in Jakarta Retailer ............................................ 43

Figure 3.8. Pricing ................................................................................................. 44

Figure 3.9. Final Result of Moonsoon Game ........................................................ 44

Figure 3.10. Unit Sold per Day ............................................................................. 45

Figure 3.11. PO List: Move Stock to Jakarta ........................................................ 45

Figure 3.12. Location Information ........................................................................ 46

Figure 3.13. Initial Condition ................................................................................ 47

Figure 3.14. Initial Configuration ......................................................................... 47

Figure 3.15. Finished Goods Purchase (Day 1) .................................................... 47

Figure 3.16. Retail Area Management .................................................................. 48

Figure 3.17. Cost of Goods Sold ........................................................................... 48

Figure 3.19. Retail Market Demand Forecast (30 Days) ...................................... 49

Figure 3.20. Jayapura Apple Juice Pricing ........................................................... 49

Figure 3.21. Jayapura Orange Juice Pricing.......................................................... 49

Figure 3.22. Jayapura Melon Juice Pricing ........................................................... 50

Figure 3.23. Daily Retail Sales ............................................................................. 50

Figure 3.24. Unit Sold per Day ............................................................................. 50

Figure 3.25. Inventory Remaining ........................................................................ 51

Figure 3.26. Location Information ........................................................................ 51

Figure 3.27. Finished Goods Purchase for Ende .................................................. 52

Figure 3.28. Move Stock for Ende ........................................................................ 52

Figure 3.29. Detail Retail Sales............................................................................. 53

Figure 3.30. Rental Space ..................................................................................... 53

Figure 3.31. Apple’s Price of Ende ....................................................................... 54

Figure 3.32. Orange’s Price of Ende ..................................................................... 54

Figure 3.33. Melon’s Price of Ende ...................................................................... 55

Figure 3.34. Final Result of MonsoonSim Game ................................................. 55

Figure 3.35. Retail Market Share (Accumulated) ................................................. 56

Figure 3.36. Sales Market Share (Accumulated) .................................................. 56

Figure 3.38. PO list of Product Purchase for Warehouse Stock 1 ........................ 58

Figure 3.39 PO list of Product Purchase for Warehouse Stock 2 ......................... 59

Figure 3.41. Purchase Regulation by each Vendor ............................................... 60

Figure 3.42. Warehouse Situation After Every Stock In ...................................... 60

Figure 3.43 Warehouse Situation with Safety Stock ............................................ 61

Figure 3.45. COGS ................................................................................................ 63