Core Scoring Metrics from capsim simulation PDF

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Summary

Core Scoring Metrics from capsim simulation; instruction slide, should read it before the start of the practice. The more you understand about capsim, the better....

Description

Scoring Metrics CapsimCore uses 5 star metrics to evaluate performance and is designed to encourage improvement and exploration. Companies do not have to be industry leaders to score highly in the simulation. Participants who demonstrate growth and the ability to learn from mistakes will earn stars by improving the following metrics round-by-round.

Sales

Round 0: $40,800

Definition: The total number, in dollars, that you sell in a single year. This is also known as Total Revenues. How to Earn a Star: Grow your sales by at least $1 when compared to the previous year. How to Improve: There are many ways to improve this metric. First, the segments on average grow 14-15% each year. You can grow your sales by improving the quality of your products (in the eyes of the customer), the number of products you offer, and how much you spend to market them.

Profit

Round 0: $2,490

Definition: The amount of your sales remaining after your expenses are accounted for. How to Earn a Star: Grow your profits by at least $1 when compared to the previous year. How to Improve: Bringing in more revenue (sales) is a good place to start but is not a requirement to be more profitable in the next year. Decreasing variable costs is another tactic for increasing profits. These consist of labor, materials, and the cost to store any inventory you do not sell. Options for decreasing these costs include: purchasing automation, reducing a product’s MTBF (which may result in a drop in demand), and avoiding excess amounts of leftover inventory.

Stock Price

Round 0: $11.16

Definition: The current value of your stock; an investment that signifies ownership in a public company. How to Earn a Star: Increase your stock price by at least $.01 when compared to last year. How to Improve: Increasing your stock price is heavily dependent on your profits. In fact, if you are more profitable than you were in the past it is very likely a star will be earned. Here are some tips: 1) Avoid emergency loans. If you receive one it is highly unlikely your stock price will increase. 2) Avoid selling more stock than needed. The more stock you sell, the harder your earnings will have to work see an increased stock price.

Contribution Margin

Round 0: 20%

Definition: The percentage of your sales left after subtracting your variable costs. How to Earn a Star: Increase your contribution margin by at least 0.1% compared to the previous year. How to Improve: Increase the revenue a product is bringing in, or reduce the variable costs. Increasing revenue means charging more which may result in a drop in demand. Reducing your variable costs consist of labor, materials, and the cost to store any inventory you do not sell. Options for decreasing these costs include purchasing automation, reducing a product’s MTBF (which may result in a drop in demand), and avoiding excess amounts of leftover inventory....