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Game 3: Learning objective: learn how to deal with variability in demand and in process times. That is, Learn how to reverse the curse of

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Game 3: Learning objective: learn how to deal with variability in demand and in process times. That is, Learn how to "reverse the curse" of variability. Demand: stable (but variable) all the way from day 0 to day 270, at an average of 12.2 jobs day. Possible moves: buy machines (each machine costs $50,000 at each station); change lot size. Lead time: Full revenue if lead time 0.7 days, linear interpolation in between. Costs and Revenue: There is no raw material cost; revenue is $500/job (if done in 0.7 days). Machines: Start with 3-1-2 (3 machines at station 1, 1 at station 2, and 2 at station 3). Each machine costs $50,000. Scoring: your ending score in this game will not directly matter - you can experiment to your heart's content" in this specific run of the game without risk. Buy (and cell and rebuy) as many (or as few) machines as you want. HOWEVER, when the game ends at day 270 (effectively, at day 170), you should leave the game in the position in which you want your REAL score to be calculated. Your cash position will be calculated "after the fact", as if the entire 270 days were run at the setting in which we find your game at day 270. For example, say that at day 270 we find your game is set to 6-3-4 and 3 lots per order. Further, say that this configuration results in revenues of $5,000 per day. Then your total revenues will be $5000/day (270 days) = $1,350,000. However, you will be charged 5350.000 for the 7 machines purchased (the configuration of 6-3-4 has 7 machines more than the starting configuration of 3-1-2), leaving you a net score of $1,000,000. Your grade in the game will be based on the $1,000,000 relative to the score of other students

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