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GAME SUMMARY & PARAMETERS – QUICK REFERENCE
Ground rules for the simulation (Solo Assignment 1 and the Team Competition) are outlined below. Please note that several of these parameters are different from those used in your solo practice and from those described in the Micromatic student manual. All values listed here are effective as of the beginning of Quarter 1. Future values may change due to your decisions and/or changes in the competitive/market environment. Remember to take note of all changes as the competition proceeds.
(1) PRODUCTION OPERATIONS AND ADMINISTRATION
Production Plant and CapacityIn the beginning of Quarter 1, you only own one plant in Region 1. Products assembled in this plant are stored in company warehouses located in Region 1, Region 2, and Region 3 markets. Region 3 is a European market and all transactions taking place in that region will be in Euros, unless stated otherwise. From each warehouse, products are sold in the respective market.
Current plant capacity for regular production in Region 1 18,000 units per quarter Company Owned Capacity (available through Q20) 10,000 units per quarter Leased Capacity (available through Q7; has to be ordered again in Q7) 8,000 units per quarter
Overtime production capacity ??????????????????????????????????????????? ?????????? See “Production Workforce and Wages” section below
Minimum plant capacity (owned or leased). If you choose to have operations in a given region, this is what you MUST have in order to operate there. Region 1 5,000 units Region 2 3,000 units Region 3 3,000 units
Depreciation (of owned plant only) Straight-line method over 20 quarters
Expansion of plant capacityBuild/Buy (ownership)Required investment $100,000 per 1000 units of capacity in R1 & R2, €100,000 in R3Minimum addition to an exist
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