OM – II Assignment
LITTLEFIELD TECHNOLOGIES
A report submitted to
Prof. Subhamoy Ganguly

On
23/01/2014
By
Group 7B
Aparna Sagar/ Mayank Sengar/ Preeti Kumari/ Rajeev Ranjan/ Vaibhav Arora

Indian Institute of Management Udaipur

Littlefield Technologies – Our Gameplay

Initial Game Strategy: The team met, the day before the game was about to start, to prepare a strategy based on the learning that we had while playing the demo version of the game. We had realized that the machines in Station 1 and Station 3 were operating at full capacity (i.e.100% utilization) when the demand was high. As a result, inventories were queuing up right before these two stations. We thought of buying both the machines but due to cash constraints we could afford to buy only one. We decided that our first move would be to buy a Station 1 machine. We decided that we would look at the lead time and then decide which one of the three contracts we should opt for. We also discussed the safety stock level that should be kept and the amount of quantity to be ordered (i.e. reorder quantity). Since the lead time of supplier was 4 days we decided that based on the average number of jobs we would keep the safety stock value.
The Strategy and the Steps Carried out:
Step 1: On Day 61 we bought the machine of Station 1 with $90,000. We saw that we were getting a lead time of about 2.3 days hence we chose Contract 1, in which we would receive $750 for completing the orders in minimum 7 days and maximum 14 days. We also saw that we were getting an average of 15 jobs per day i.e. we had to supply (15 X 60 =) 900 quantities per days. Hence team came to a conclusion that the re-order point be kept (900X4=) 3600. We had 7620 amount of inventory so we kept the re-order quantity at 3000 so that the inventory level comes down. After taking this step, we saw that the lead time had come down