Operations Management: Processes and Supply Chains, 12th Edition

Experiential Learning 12.1 Sonic Distributors

Scenario

Sonic Distributors produces and sells music CDs. The CDs are pressed at a single facility (factory), issued through the company’s distribution center, and sold to the public from various retail stores. The goal is to operate the distribution chain at the lowest total cost.

Materials (available from instructor)

• Retail and distributor purchase order forms

• Factory work order forms

• Factory and distributor materials delivery forms

• Inventory position worksheets

• A means of generating random demand (typically a pair of dice)

Setup

Each team is in the business of manufacturing music CDs and distributing them to retail stores where they are sold. Two or more people play the role of retail outlet buyers. ...