working capital simulation - mit ctlctl.mit.edu/sites/ctl.mit.edu/files/tab 6 working...
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WorkingCapitalSimulation
JarrodGoentzel
BasedonmaterialsprovidedbyHarvardBusinessPublishing
Toaccessthesimulation
• ClicktheHarvardBusinessPublishing linkintheemailyouweresentbythecourseadministrator
• Itshouldhavethisdomain:cb.hbsp.harvard.edu• Notethatthelinktoaccessthesimulationmaybedifferentthanthe linktootherHarvardBusinessPublishingmaterials(e.g.cases)
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Youshouldarriveatthispage
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Logintoyouraccount
IfyouhaveapreviousHBPlogin,thenthelinkwilladdthe
simulationtoyourcoursepack.
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RunSimulation
Click “Coursepacks”
Click your course name
Scroll down and click“Run Simulation”
YYYY CourseName
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Available inyourcoursepack online:
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Warmupanalysis:CashConversionCycleforSNC• Calculatethefollowingfor2012
– DSO:DaysSalesOutstanding– DPO:DaysPurchasesOutstanding– DSI:DaysSalesinInventory– CCC:CashConversion Cycle(indays)
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• YousimplymakeYES/NOdecisionsaboutbusinessopportunities• Thereare10opportunitiesover thenext8years
(1024solutionsifyouwanttocompletelyenumeratethem)
JarrodGoentzel
WorkingCapitalSimulation• Roles:YouaretheCEO,Iamtheshareholder• Goal:Makemehappy• Constraint:Yourcreditlinecannotexceed$3.2million; laterImayreducethecreditlineandseehowitaffectsyourperformance.
• Resourcesavailable– Video(6minutes)todescribethegame– Copytoclipboardoption(mayneedtorefreshthebrowser)
– TerminologyPrimer
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JarrodGoentzel
Watchyourcreditlimit
Questionstoconsiderforthedebrief
• WhatisthekeytoSNCsuccess?• Whatwasyourobjectiveinmakingdecisions?• Whatapproachesdidyouusetoevaluateoptions?
JarrodGoentzel