Erpsim Game Case Study

In the ERPSim game, our team (Team G) encountered productivity problems, low company valuation, and low sales revenue. In fact, all of the challenges affected my role as a Sales Manager. Regardless of the problems, our objective is to efficiently deliver the products in response to the market demand. Our product mix is consisted of Blueberry, Mix Fruit, and Raisin Muesli, for we were concerned of raw material cost and market trend towards fruits.

During the practice game, we observed that consumes prefer and favor products that contained fruits. Not to oversee the production cost, we decided produce Blueberry and Mix Fruit Muesli that incurred high raw material cost, and balanced out the high cost by producing Raisin Muesli. Based on the
Based on our sales orders, we generated most of our profit from distribution channel 10 or grocery stores. The left chart shows the number of sales based on 1kg products, while the right chart shows 500g products. We can see clearly that in 1kg category, Mixed Fruit Muesli is having a highest sales order of 70 orders; however, those orders didn’t generated highest profit in return, according to the net value above.

The highest sales order doesn’t guarantee the highest quality sold. Since we dropped out the Raisin Muesli in the middle of the game, using Raisin Muesli to compare the products will not be as efficient. By ignoring Raisin Muesli, the 1kg and 500g of Mixed Fruit Muesli combined ranked the lowest at 304,000 quantity sold only. Comparing to the second highest quantity sold of Nut Muesli, the product of Nut Muesli is 595,620 quantity sold or 51.04% higher than Mixed Fruit
We didn’t realized how much opportunity in term of revenue we lost when we decided to keep Mixed Fruit Muesli as one of our products. However, we did make a right decision to switch out Raisin to Nut Muesli. We tried to be unique in the market by offering products that are different from our competitors, but we aren’t able to compete with all of them. I believe product mix and pricing do play a huge role to the success. Our team are dominated in gross margins % for we charged higher price than others. We first believe the higher the price, the more the revenue. However, our sales revenue could be higher and people would buy products from us if we lowered our prices. I am not able to effectively predict the market price. I tried to lowered to price as at least $0.15 above the market price, but our competitors offered lower prices. As a Sales Manager, I recommend the product mix to be changed and the price to be lowered. The product mix should be Blueberry, Nut, and Strawberry Muesli. I realized the raw material for Blueberry and Strawberry are high, but these product mix will generate higher revenue compared to now. For Blueberry, I am able to charge at least $6.30 for 1kg and $5.50 for 500g. Moreover, I acknowledge that people are giving more value to Strawberry than Blueberry Muesli. Based on the market price, I we could charge at least $6.50 for 1kg and $5.70 for 500g Strawberry