Wirtschaftswissenschaftliche Fakultt

Logistik und Quantitative Methoden

in der Betriebswirtschaftslehre

PROF.DR.RICHARD PIBERNIK
STEPHANSTR. 1 D 97070 WRZBURG
RICHARD.PIBERNIK@UNI-WUERZBURG.DE
T ELEFON 0931 31- 86969

Wrzburg, den 11.03.2013

Seminar: Supply Chain Competition (Master)

The Fresh Connection Value Chain Simulation
SYLLABUS
SS 2013

OBJECTIVES:
The components of a value chain are traditionally seen and administered as separate entities:
the operations manager tries to optimize processes in production and warehousing, the
purchasing manager wants to minimize purchasing prices, the sales managers efforts are aimed
at maximizing revenue, while, hopefully, a supply chain manager tries to coordinate this
complex array of tasks and incentives.
However, current practices very often ignore how the decisions taken by these different
managers may inadvertently impact the overall performance of a different area value chains
are complex systems, where changing the value of one variable affects the functioning of the
whole system. A synergetic approach would thus be more effective, along with incentives
promoting overall results as opposed to individual performance. Today, many companies have
realized the value of a better coordination of different functions and tasks in the Value Chain and
have launched projects to change organizational structures and incentives to improve cross-
functional alignment. In this context, practitioners often refer to a concept called integrated sales
and operations management (S&OP).
Unfortunately, designing such systems has proven to be a very complex task: the traditional
functional view of the Value Chain is deeply embedded in most organizations. Better alignment
requires a better understanding of how decisions of different functions impact each other and the
performance in the Value Chain. Also, new incentive schemes need to be established.
The objective of this course ties directly into this subject: it aims at giving students an
understanding of how they can best coordinate their efforts with other areas, as potential future
employees and/or managers operating in a specific area of an enterprise. Thanks to the game
The Fresh Connection, they will be assigned to the role of either purchasing, operations,
HIER FINDEN SIE UNS
STEPHANSTRASSE 1 3. OG
RUME 301 - 304
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supply chain or sales manager; as objective, they will be requested to improve the performance
(measured by Return on Investment) of The Fresh Connection, a producer of fresh fruit juice,
through a series of sequential decisions.
The Fresh Connection is a business simulation, a powerful and innovative learning method
applied by many business schools and companies around the world, aimed at replicating a real
business environment in a classroom setting. You can obtain further informations under:
http://www.thefreshconnection.eu.
At the end of the course, the participants will develop a deep understanding of the intricate
interdependencies between the variables governed by each area-manager in a typical medium-to-
big firm, as well as having a general overview of how each area contributes to total value added.
Finally, they should be able to recognize when and where this knowledge will and may be
practically relevant, in order to avoid negative deviations from optimal performance caused by
lack of coordinated incentives.

CONTENT:
The students will be asked to play six rounds of The Fresh Connection, with increasing level
of complexity, determined by the expanding array of choices available. At the end of every
(other) round, they will be required to write a structured report detailing:
The overall value chain strategy they decided to purse;
The breakdown of this strategy into sub-functions;
The individual choices of each area-manager, more specifically:
The rationale behind them;
How do they affect the parameters and choices of the other teammates
How well the results match the strategy, what did each player learn, and how will they try to
improve their current performance.

At the end of the six rounds, a final and shared review will take place, in order to compare and
contrast the different results.

GRADING:
The ECTS-points awarded for the course will be 5. The grades will be mostly based on the
quality of the written reports, and partially on presentations and class participation:
75% of the grade will be determined by how well your report shows:
o The coherence of your decisions with your general strategy: how did you translate
your idea into action?
o The rationale behind each choice: does it fit the general functioning of the value
chain?
o The resulting performance: did it meet your expectations? If not, what could the
causes have been?
o The evolution of your strategy: how did you react to the results obtained during
the previous round? If it was positive, how did you try to improve? If not, what
did you change?
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The report should comprise around 20 pages, and can be equally written in German or English.
Each team has to submit one single report. The suggested structure is detailed in the Content
section; it should be considered as a sketch, which is liable to change according to the specific
preferences of the writer.

25% of the grade will be based on the final presentation, which will be held on the final
day of the course.

LITERATURE:
Specific literature will be distributed during the first session of the course.

LECTURES:

25th of April (Room 410) Introduction (4-8 p.m.)

16th of May (Room 410) Review & Debrief: First, Second and Third Round (4-8 p.m.)
29th of May (Room 410) Review & Debrief: Fourth and Fifth Round (4-8 p.m.)
th
13 of June (Room 410) Final Presentation (4-8 p.m.)

APPLICATION:

Application deadline: April 19, 2 pm. Send application material to maya.michels@uni-

wuerzburg.de
Application Material:
o An overview of the courses that you have attended in the area of Value Chain
Management including a grade sheet (Notenbersicht).
o Drop-out declaration (see below)
Admissions Criteria:
o Should there be more than 12 applicants, seats will be allocated based on the
number ECTS collected in the area of Value Chain Management. In case the
number of applicants, which qualify for the course, exceeds 12, we may choose to
admit more students.
Drop out declaration: The game is designed for groups of 4 students. We will not
accept drop-outs, i.e. if you apply for the course and you are admitted, you have to
complete the course. Else, the learning experience of all others in your group will be
jeopardized. Also, we pay a fee of approximately 50 per student; if you drop out, the
money is wasted. Therefore, we request the following confirmation in writing: I am
aware that if I am admitted to the course and I choose to drop out, I will have to
personally cover the cost of the game (approximately 50). Also, I acknowledge that in
case of dropping out, I will not be admitted to this specific course at any time in future.
Attendance is mandatory, since all the players are required for successful completion of
the simulation.

CONTACTS:
Prof. Dr. Richard Pibernik (richard.pibernik@uni-wuerzburg.de)
M.Sc. Fabio Di Gaetani (fabio.di_gaetani@uni-wuerzburg.de)