Essay: ERPsim Lab overview

The main mission of ERPsim Lab is to conduct research, development and move  in the field of serious games in information innovation. The objectives of the game is to demonstrate how the ERP system supports business techniques, to create hands-on understanding hidden venture frameworks concepts, to encounter firsthand the unmistakable advantages of big business reconciliation, and to create specialized abilities at taking decision utilizing a venture programming. In the three rounds that we completed we changed price, ran mrp & created purchase orders, and forecasting.
Pricing is a very important factor. When setting your price, you don’t want to set it too high or too low. We were required to sell a total of 6 products − 3 products in 2 sizes (boxes of 12x1L and 24x500mL) − in 3 different regions. When maintaining a set price for success we had to take into account our productivity, distribution channels ,market prices, and inventory levels. When setting a price, we have to make sure we set a price where we don’t sale out of our products. Our team set our price at a constant price that satisfied our customers. In Round 1, we did really well maintaining a price for our profit. In Round 2, we didn’t really sell the items as successfully as Round 1. We discovered that we may have set our prices too low or too high.
You should never run out of inventory, it will cause you to lose money. If you have no stock , it gives the competitors an opportunity to get the sale. Too little inventory means neglecting to take care of and boost the demand for your items, consequently affecting your best line adversely. The finished goods will be carried over to the second round if you still have inventory in the end of the first round. Finished goods and raw materials will be carried over to the third round if your still have inventory in the end of the second round. At the end of game, inventory will be value at cost price in the final balance sheet. With this being said you have to make you that you don’t sell under cost at any period  of the game.
We advertised in all three regions . The three regions were North, West, and South. Each region had an interesting inclinations identified with the items it wishes to buy from your company. Advertising cost more than sales but we had to advertise heavy to maintain a good margin. In the second round we decided that we should use less money on advertising.
Replenishment will allow you to purchase the same amount of quantity that you have already sold. You can only replenish in rounds 2 and 3,  it takes 3 days to replenish. You can replenish by running the mrp. After Round 2, you will have to replenish again. You will have to change your forecast to adjust the replenishment levels to the needs.
Forecasting is one the important elements of the game. Forecasting is the process of predicting a future occasion. There are three types of forecasting which are economic forecast, technological forecast, and demand forecast. When forecasting, you have to watch the inventory report and sales report . The forecasting process is very important because the company can’t sell any product unless it has products in stock. Also, the forecasting will influence the liquidity of the organization and its money position on the grounds that the organization needs to pay its providers notwithstanding they sell the items or not.
The goal is to make profit, you should never set a price below the cost. There standard report shows the balance sheet and income statements. The statements  in the game is utilized to show us how and where the cost and stock is set. The game demonstrates to us the adequacy of budget summaries investigation in a dynamic recreated condition utilizing ERPsim. The choice to build limit or reduce setup time will influence the financial reports of the organization by decreasing the money balance or requiring the organization to obtain extra assets from the bank. Additionally, this choice will expand the settled resources that the company owns.
As a team, we decided to split of the task and the responsibilities up amongst the the team members. Each team member had a different responsibility and task of monitoring the stimulation. Along these lines, every member had full basic leadership expert over their relegated zone since they seen how to best utilize their given data .If a group member ran into problem or needed anything , they would communicate with the other members of the group. One of the group members  looked at price. Another one of the group members worked on changing the price. Lastly, the last group member monitored the inventory and sales.
The group’s goal was  to maximize sale revenue , limit operational costs and keep stock dimensions low to abstain from being charged warehousing costs. Given the chance to share in the recreation once more, the group would focal point of amplifying net benefit and net edge. This could have been accomplished through factor evaluating for every item to dependably keep up a focused edge over different groups.
In conclusion, the overall game taught me how important pricing is and how it could possibly affect your profit. As a team we worked together very well and we learned the strengths and weaknesses of each other , that’s how we decided on which member would do what. We feel as though the game was an effective tool for teaching about financial statements. This game provided the us with company to run and make strategic decisions.