The game that adds value to supply chain collaboration

The NetChainGame, developed in AIMMS, is the game that adds value to supply chain collaboration

Which decisions are good for the entire supply chain?
Which decisions are good (only) for the individual company?
How do participants balance between common and individual goals?

Playing the NCG enables participants to explore the trade-offs between supply chain goals and individual company interests. Setting a strategy, a logistics structure and negotiating contracts are typical strategic supply chain decisions. Participants have to make risk assessments and logistics choices and take corrective action under stress in day-to-day operations. This type of knowledge is increasingly necessary to thrive in today’s marketplace. The NCG helps to develop these competencies.

A tool for educating SCM know-how

The NCG primarily aims at bachelor and masters students with a logistics background. It is developed to be tought multiple times in the curriculum, with increasing complexity of the issues and scenario’s dealt with. Teachers should integrate the NCG in their second or third year subjects. Moreover, business schools, training institutes, consultancy firms and branch-organizations can also hire the NCG for postgraduate education or in-house training.

Gaining by gaming, learning by doing

The main advantage of the NCG is that business practice is simulated in a very realistic way. In this way, learning curves are much shorter and better feedback can be given. Moreover, the NCG is supported by a Multimedia website which increases the sustainability of the lessons learned.

Innovation in gaming by the NCG

The netchaingame is unique because of its hybrid structure of strategic market (PMC) and logistic choices on the one hand versus the operational simulation with operations management decisions on the other hand. The two are linked: badly negotiated contracts lead to difficult operations and vice versa. The NCG is the only management game in the world that is concerned with supply chain collaboration. Players communicate formally via offers, proposals, contracts, orders, bills and deliveries but also informally via the chat box and the popularity poll. Although the teacher (game leader) has some influence on the supply chain configuration, in the end the participants in various roles form the actual network of supply chains by closing the deal. In principle, there is competition between supply chains, but as participants can take part in multiple and partly concurrent supply chains this may lead to complex trade-offs.

Moreover, both ‘hard’ financial and logistics Key Performance Indicators, as well as ‘soft’ trust related criteria are used to evaluate the participant’s behavior. Always, there have to be two full supply chains at minimal. If too few real players are available, AI-players can take over roles.

Modular structure enables multiple business cases

The game is a simulation of a business case. The model has been developed on a generic level and currently we offer a business case concerning car spare parts. In the near future we will work on new cases. The modular structure also enables to build up complexity of the game hence certain software modules can be switched on or off. In the automotive parts game, we distinguish three participant roles: the producer, the wholesaler and the retailer. The end user market and material suppliers are fully automated and steered by the game leader. Roles can change, so e.g. the producer may directly deliver to the end user. Depending on price and logistic performance, the turnover is determined. Some PMCs are more sensitive to performance, others to pricing. Other important control parameters include transportation management, inventory control and exception handling.

Who developed the Netchaingame?

The Netchaingame was developed and financed by a coalition of CentER Applied Research (project management), Wageningen Universiteit, Erasmus Universiteit Rotterdam, TIAS Business School, Paragon Decision Technology, Nederland Distributieland, Van Heck Car Parts, Dutch Ministry of Transport, Public Works and Water Management (Min. van Verkeer & Waterstaat) and KLICT.

Are you interested?

For more information please contact dr. ir. Harold. Krikke, CentER AR, University of Tilburg, The Netherlands, E-mail: krikke@uvt.nl.

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