Learning Objectives:

The Spice Merchant simulation is designed for students to understand retail decision making and apply concepts of economics, pricing and inventory management. During the course of this simulation exercise, students will learn to understand market dynamics, manage demand, and apply pricing, replenishment and inventory management techniques. At a high level, students will evaluate revenue management strategies and synthesize game-plans to maximize top-line and improve bottom-line.  This is a single-player simulation with advanced game-play options considering economies of scale, price elasticity and variation in lead time.

Simulation Outcomes:

• An understanding of retail merchandising operations
• Ability to analyze demand patterns, and manage retail demand
• Apply optimal pricing techniques for a certain category of goods
• Apply inventory management techniques, and evaluate best replenishment options for the merchandising context
• Develop revenue management techniques for optimization