Fundamentals of Channel Management


Almost any supply chain (logistics) course where there is a desire to give students experience in setting up and managing a supply chain, and to develop relationships between teams who become either suppliers or distributors.


Provides the students with a full set of supply-chain options, allowing them to make investments to speed up and better coordinate the exchanges between business partners. The outsourcing component helps business students appreciate the intricacies of negotiation.


4 decision rounds, with each round taking 2 to 3 hours per student to complete.

This simulation focuses on the development and maintenance of business-to-business relationships between teams who become either suppliers or distributors of microcomputers. It gives students in-depth exposure to what actually goes into making supply chains work. Students learn to balance selfishness and short-term gain with the potential for greater reward in the long-term. They learn to negotiate, cooperate, and coordinate to achieve desired ends while focusing on win-win solutions.


You are about to start a new company that will enter the microcomputer business during a turbulent period in our economic history. You may choose to be either a supplier or a reseller in this industry. As a supplier, you have acquired a factory in Asia and will produce microcomputers for one or more resellers. As a reseller, you will buy microcomputers from suppliers and market them throughout the world. As either a supplier or reseller, you will have limited financial resources and complete accounting responsibility. An outside group of venture capitalists will provide the seed capital to start your business. It will invest 4 million in the first quarter, 2 million in quarter 2, for a total of 6 million. Your executive team has the next year to get this company off the ground in spite of the economic, political, and supply chain risks that you will face. Within this time frame, you should become a self-sufficient firm, earning substantial profits from your operations. To achieve this goal, you must plan for and manage the risks that could emerge during this first year in business.


Grading is based on the balanced scorecard that measures profitability, customer satisfaction, market share in the targeted market segments, human resource management, asset management, manufacturing productivity, financial risk, preparedness for the future and wealth.

Students can play against their peers.