A Team-based Experiential Learning in Supply Chain Sourcing: Purchasing and Negotiation Exercises

Abstract

<p>This paper presents a web-hosted Google Sheet model of supply chain sourcing game focusing on negotiation activities which has been used in the classroom. The negotiation exercise was designed to place students in a position where they must make team based purchasing and selling decisions. The exercise was broken into three separate games. The first game is a group based on purchasing strategies. In this activity, they learn the basics of making purchasing decisions while considering demand, holding and ordering costs, and variable (tier based) pricing. The next two games are round based games. In the class, teams are formed (an even number) and half the teams are assigned to be a purchaser while the other half are suppliers in the first round. Each team must make decisions that will make them better off than other teams. Once the first round is complete, the teams switch roles with a different scenario and continue negotiating. The team with the most profit is the winner of the exercise. The purpose of this article is to describe the structure of the exercise, how we deliver it as a pedagogical game in our classes, and share this easy to apply activities that capture the dynamics of negotiation and the resulting benefits to supply to supply chain members.</p>