Mixed‐integer linear programming optimization for the Supply Chain Game

Abstract

AbstractIn this article, we describe the use of linear programming in conjunction with an online simulation game in an undergraduate supply chain management class. Supply chain management is a required course for students enrolled in a Business Administration program with a concentration in management. It delivers a broad overview of the supply chain management discipline, using a simulation game by Responsive Learning Technologies to provide students with hands‐on experience designing and managing a supply chain. In this teaching brief, I give an overview of the game and present the formulation of an accompanying mixed‐integer linear programming model to design an optimal supply chain that meets customers, demand while maximizing company profit. Students use a spreadsheet template to develop their own implementation of the model and then apply the optimal solution during the simulation. Consequently, they gain an understanding of the role of network optimization in supply chain management. I conclude with recommendations for management of game activities using this model and a brief discussion of some of the issues to be monitored as the game is played.