BPIsim: A Hands-on Simulation to Teach Cash-to-Cash Manufacturing Operating Cycle Processes, in a Purchasing, Operations, and Supply Chain Management Context

This paper presents a hands-on simulation that is conducted in an introductory integrated supply chain management course, using enterprise resource planning concepts associated with the Cash-to-Cash Manufacturing Operating Cycle. More specifically, this paper simulates the activities in the procure-to-pay, plan-to-produce, and order-to-cash business processes to provide participants the opportunity to learn integration of key business processes, in a purchasing, operations, and supply chain management context. The hands-on simulation is called Business Process Integration Simulation, or BPIsim. Participants collaborate on a 5 member supply chain team comprised of an end-user, a distributor/dealer, a manufacturer (OEM), and two suppliers. While partaking in the simulation, participants actively experience the exchange of tangible resources (e.g., preprinted documents, prop cash money, packaging, and component, raw, semi-finished, finished and trading goods inventories, etc.) and construct tangible product for the benefit of the customer. When the simulation is complete, the participants will have learned, first-hand, major ERP concepts and the five major activities associated with plan, source, make, deliver, and return management processes that are prominently highlighted in the seminal Supply Chain Operations Reference (SCOR) Model. Quantitative and qualitative data, obtained from the participants, indicate that the hands-on simulation is not only intuitive, engaging, and fun, but also a highly-effective experiential learning activity, to improve understanding of key business processes that span across five key supply chain members.