COVER (YANG BAGUS & MENARIK)

(INTRODUCTION)

Monsoon Simulation (MonsoonSIM) is an interesting learning base for the considering

procedure. Many business ideas can be found by students through this simulation. Monsoon
Simulation is centred on ERP frameworks. With Monsoon Simulation, students can get
expansive learning and a decent comprehension of how business endeavour is kept running
with ERP fundamental ideas. There is different association between information and
procedure from different offices which will influence one another. MonsoonSIM makes
students mindful of the effect from every office to other people, and the disruption of one
division may affect the entire activity execution. Monsoon simulations are available with
13 business departments. Students can get the top 4 knowledge by playing this game, there
is:

 Business and economy fundamentals

 Business operational management
 Enterprise Resource Planning (ERP)
 Logistics and Supply Chain Management (SCM)

MonnsonSIM is utilized to assist student with gaining learning abroad about the idea of the
creation framework and the whole activity process, in the subject of the Integrated
Production System by Mr. Johan Krisnanto Runtuk, ST., MT. In playing this game, student
in the class are partitioned into 8 group, each group has 5 member. To win this game, there
are 7 appraisal pointers in particular Cash on Hand, Sales Revenue, Net Profit, Utilization
- Retail, Utilization - Warehouse and Market Share. To expand and win, the fundamental
technique is cooperation and correspondence between individuals is required. General
techniques, explicit methodologies, the undertakings of colleagues and why this group not
wins will be clarified on the following page.

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1. General Strategy of Monsoonsim Simulation

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2. The Specific Strategies

2.1 Retail Management

2.2 Warehouse Management

Our group chose to activate warehouse function in day 6, in the first day we set the
warehouse space into 0. The reason of this action was to prevent the cash on hand low in
the beginning of the time. Our Cash on Hand already high, we purchased the finished goods
and delivered to warehouse meanwhile changing the area of warehouse from 0 to 1000 m2.
This total area was enough, since our strategy planning was using moving stock strategy
and order directly for 3 retails. Our group bought 12,000 units for every type of juices,
because we want to have stock in case if the stock of each city is running out. So, we can
move from warehouse to each city.

There two option for moving stock, which is auto- replenishment or manual. Our group in
the first game try to auto-replenishment stock. But, change to manual because lack of
understanding about auto-replenishment. And also because the demand is high and
unpredictable. The location of warehouse was in Singapore, and the retail location in

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Jakarta, Malaysia, and Bangkok. The lead time between warehouse and retail is 1 day to
Malaysia, 3 days to Jakarta, and 5 days to Bangkok. The specific strategy for each city was:

1. For moving stock to Jakarta, our group moving 12,000 unit for each fruit. The
reason is because in Jakarta the demand is higher comparing with other city. We
move basically based on consumed not by days
2. For moving stock to Malaysia, our group moving based on the stock in Malaysia,
if the stock in Malaysia reach 3,000 unit for each fruit, so our group moving stock
from warehouse to the Malaysia that takes only 1 day.
3. For moving stock to Bangkok, our group using different strategy with Jakarta and
Malaysia, because the lead time is 5 days. So, if the stock is reaching 5,000 unit of
each fruit we move our stock from warehouse to Bangkok.

Figure Warehouse Stock day 1- 90

What need to be improve?

In warehouse, our group need to choose the best strategy to optimize warehouse
function, also ready if the demand increasing that will affect stock for each city is
running out. And learn about auto-replenishment to prevent stock in each city is run
out of stock.

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2.3 Procurement System
2.4 Forecast Demand Module Application
2.5 Marketing Strategy
2.6 Pricing Strategy

3. Team Member Contribution

Team Member Contribution

Team Member Contribution
Anissa Astianur  Monitoring Sales by Products
Maulina In doing this task, Anissa monitor the sales of each product to
fulfill the demand. Anissa will coordinated with viola to set the
retail price based yesterdays’ sales and by knowing the sales by
products, Anissa will informed the Marketing team which
product and which region needed to be advertised to the market.

 Monitoring Unit Sold

By monitoring the amount of unit sold, Anissa inform the team
about the condition of the market, therefore the team can give
feedback in order to determine the best strategy and improve the
sales if the trend is decreasing.

 Monitoring Forecast Demand

In order to fulfill the demand, Anissa monitor the forecast
demand every day. Therefore, she gives a report to Procurement
team in order to prepare the peak season and informs Viola
about the strategy to face the high demand.

Fransisca  Purchase and Analyze Marketing Report

Tanadjaja In doing the project, Sisca purchase the marketing report and
analyze it. After that, Sisca will informed the team about the
market share and received some suggestions to improve the
market share.

 Monitoring Unit Remain

By monitoring the unit remain, Sisca coordinates with Lin to
maintain the availability of the stock. If area utilized of the
region is less than 40 and if the graph shows the amount of stock
is less thank 5k, Sisca will remind Lin to order the products
immediately.

 Monitoring Marketing Investment

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 Based on the Information from Anissa, Sisca helps to set which
media needed to be advertised. After that, she is also monitoring
the marketing investment in order to increase the unit sold.

Fransiska Elviana  Procure Finished Goods

Guru Based on the reminder from Sisca, Lin will procured the
finished goods and determine quantity of each products, vendor,
and region that needed the stock. Besides that, Lin will prepared
for the peak season from the information about forecasting
demand.

 Monitoring the Lead Time

After procure and approve the purchase order, Lin monitor the
lead time from the vendor to the region. From the PO list, Lin
inform the team about the arrival of products.

 Monitoring the Net Profit and Cash on Hand

During the project, Lin monitor the net profit and cash on hand
and inform the team about the amound of those so that the team
will come up with some strategies to keep improve the profit
and company wouldn’t face the loss.

Rafiie Adhiatama  Monitoring the Area Size and Stock in Warehouse

In this project, Rafiie managed the warehouse by monitoring the
area size and stock. Therefore, when the urgent condition
comes, the stock of the warehouse can be moved to region that
needed. Other than that, Rafiie responsible in managing the area
whether increasing or decreasing of the warehouse so the
utilization of warehouse could be maximum.

 Determine and Maintain the Stock Move List

After known which region that needed the stock, Rafiie will
determine the quantity of stock that will be moved and maintain
the stock move list include the lead time and arrival days.

 Procure Finished Goods for the Warehouse

Rafiie handled the warehouse by procuring the optimal lot
sizing to warehouse in the right time so the stock will be
available, especially to face the high demand.

Viola Sukma Dewi  Set the Retail Price

Based on the information from Anissa, Viola will set the retail
price and determine the standard price. In order to get more
profit, Viola will set the lower price when the unit sold is
decreasing. Otherwise, the higher price will be set if the unit
sold is increasing.

 Monitor and Manage Retail Rental Space

Viola responsible to monitor and manage retail rental space so
the area utilized will not be bigger than 100. But if the stock is
filling out all the space of the warehouse, then Viola will rent
more space.

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  Analyze and Monitoring Product Price
After known the standard price, Viola will set that in stable
condition. In order to increasing profit, viola analyze and
monitoring the product price based on the information from Lin
related to the company’s net profit and cash on hand.

4. The Reason of Winning or Losing

The simulation was conducted in 90 days running, with 40 seconds for each days.
Based on the results of the simulation, our team which is team Viola is the 4th rank
from three other competitors in our class. The results can be seen on Figure xx.

Figure 4.

Based on Figure above, it can be seen that there are seven main indicators to win
this game, the first is Net Profit with the percentage of score is 20%, the second is
Cash on Hand with the percentage of score is 25%, the third is Inventory value with
the percentage 10%. The fourth is Sales revenue with the percentage of score is
15%, the fifth one is Utilization – Retail space with the percentage of score is 10%,
the sixth one is Utilization –Warehouse space with the percentage of score is 10%,
and the last one is Market share – sales – retail with the percentage of score is 10%,

From Figure xx, it shows that our team is the last rank of net profit which is 6%.
For the cash on hand with 7.5%, with inventory value 3.59%, for the sales revenue
is the last rank with 4.5%. For indicator Utilization – retail space is the first one
with the value of 10% (maximum). For indicator Utilization –Warehouse space the
value is 3% and the last one for Market share – sales – retail is the last one with 3%.

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4.1 Net Profit
Net profit margin measures how much profit out of each sales dollar is left after all
expenses are subtracted-that is, after all operating expenses, interest, and income
tax are subtracted. A higher margin means the firm is more profitable. (Murtaqi,
2014). Profit is the income earned after the deduction of all expenses. Profit is
always the goal of every enterprise. As a result, many businesses are based on profit
in different forms.

Figure 4.

Our team net profit is 4,859,593 which is the lowest from the other competitors.
The reason why our value is the lowest is because our products are many that were
not sold ends up day off for around one week in total. While for the last ten days,
the day off is around 4 days. This happened because we already prepared for the
high demand, Viola has set up the price higher than usual but ends up when high
demand comes, the products are not sold at all.

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 Figure 4.

4.2 Cash on Hand

From a competitive strategy approach, cash holding has been identified as an
important strategic tool. A company may use its cash to fund new products,channels
and entry into new markets, superior pricing and errect bariers to entry among other
strategic activities which can unnerve competition and therefore ensure continued
prosperity of the firm. (Barasa, 2018)

For the Cash on Hand the amount is 6,361,342. It is also the lowest from three other
competitors. The reason is because the area utilization is over capacity. We already
purchase the finished goods is more than the usual due to prepare for the high
demand situation, but ends up the products were not sold at all. So it causes high
inventory for the warehouse. The inventories are not delivered to the warehouse
because the situation are approaching to the last day, which around last 10 days. To
move the inventory to the warehouse, it needs more time and the expense is also
higher. That’s why we kept the inventories in each region. Because of the days off
that are many, so the company faced the loss.

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Figure 4.

Figure 4.

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Figure 4.

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4.3 Inventory Value
The inventory value of our team is 3.59 which is still the lowest. As seen on the
figure below from the graph of Unit Remain, the amount of stock for the last 10
days are still many. It is caused of the products that are not sold. These stock are
kept in the origin of the region and not moved to the warehouse. It all started
because after seeing the forecast demand, the company had prepared for the high
demand like set the price higher. But when the high demand situation comes, the
products were not sold. So the stock are still many. Because it is in the last 10 days,
so the company decided not to move the stock because the cost is higher and the
time taken is long time.

Figure 4.

4.4 Sales Revenue

Sales revenues are an item of the income statement, which is the total income that
the entity receives as cash flows or an increase in other assets from the main
activities resulting from the exercise of its principal activity, whether from the sale
of its commodity products or services. This item can be divided into other detailed
items for each product or service .The net revenue is the main figure in the financial
statements and is the basis for many calculations and analyzes, and an important
indicator of the performance and marketing ability to sell the product. (Hayek,
2018).

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 Figure 4.

The value of sales revenue of our team is 4.5 which is the lowest from our
competitors. As seen from the figure above. There are some days that not all of our
product are sold only some of our products are sold. Even there are many days, that
our products are not sold at all. So we don’t get many sales revenue. In our team,
we don’t maximize using marketing. So we were lose to the competitors who use
marketing as much as they can to the market. The reason why our sales revenue is
the lowest because we used the wrong strategy. We had prepared for the high

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demand situation but the resut is not as expected, which caused days off for 4 days
in the last 10 days.

4.5 Utilization – Retail Space

For the retail space utilization, our team was in the first place with the value of 10%.
The reason why we got the highest value is because of the capacity over in area
utilization of each retail. Actually, our strategy is not to complete all the area
utilized but to sell all the products in high demand season. But due to the unexpected
condition, our products are not sold at all on the high demand season. Therefore,
the retail space of out team is still high until the end of the project.

4.6 Utilization – Warehouse Space

Different case from retail space, for warehouse space our team was in the last place
with the value of 3%. This is due to the wrong strategy which not optimized the
warehouse area. We were thought that the best strategy is to move all the stock to
the retail space in order to prepare the high demand season. But because of many
days off for around 4 days in the last 10 days on high demand season, this strategy
is failed and the value of warehouse space utilization is low.

4.7 Market Share – Sales – Retail

(Etale, 2016) defines market share as a company’s sales in relation to total industry
sales for a certain period. Market share is sales relative to those of other competitors
in the market. Market share is usually used to express competitive position. It is
also generally accepted that increased market share can be equated with success
whereas decrease market share is a manifestation of unfavorable actions by firms
and usually equated with failure.

In doing this project, our team was in the last place for market share – sales – retail
with the value of 3%. The reason why our team lose is because we didn’t optimized
the marketing strategy. We invest low so we got the market value low as well. If
compared to the other team, we were not maximized the promoted strategy. Figure
xx shows the value of market share and marketing investment.

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Figure 4.

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 References

Barasa, C. A. (2018). Determinants of Corporate Cash Holding of non financial

firms listed on the Nairobi Securities Exchange. International Journal of
Business and Management, 13(9), p. 222 - 235.
Etale, L. a. (2016). Market Share and Profitability Relationship: a Study of the
Banking Sector in Nigeria. International Journal of Business, Economics
and Management, 3(8), p. 103-112.
Hayek, M. (2018). The relationship between Sales Revenue and Net Profit with Net
Cash Flows from Operating Activities in Jordanian industrial Joint Stock
Companies. International Journal of Academic Research in Accounting,
Finance and Management Science, 8(3), p. 149 - 162.
Murtaqi, I. (2014). The Effect of Net Profit Margin, Price to Book Value and dedbit
to Equity Ratio to Stock Return in the Indonesian consumers goods industry.
Journal of Business and Management, 3(3), p. 305 - 315.

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