Instructions to the Student:
1. The decisions on which you have to advise Salim (the spice merchant) each week are on pricing and procurement. Your primary objective while playing the merchandizing game is to maximize the profit of the merchant retailer.
2. When the merchant procures raw materials from the plantations, two costs components are in play: Raw material cost (variable cost) of $8 per kg of cardamom, and transportation cost of $100 per shipment. There is a limiting constraint of 2 quintal of transport capacity for unit vehicle shipment from Wayanad to Kochi (retail shop).
3. The storage cost of cardamom at retail store is $0.2 per kg per week, and the stock-out cost for unmet demand at the retail outlet is $2.0 per kg per week. The obsolescence cost is same as cost of obsolete raw material written off.
4. Please note that during the game, you may switch between the simulation tabs (briefing, play sim, and results) to refer to the guidelines, make pricing or ordering decisions, and to check your results. Also, carefully take note of the inputs from your course instructor / facilitator.
