freddie barnard department of agricultural economics purdue university l.
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Freddie Barnard Department of Agricultural Economics Purdue University. Purdue Agribusiness Management Simulation. Objectives. Overview of the simulation Management tools taught Contact information Demonstrate the simulation - after the session. Overview.

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freddie barnard department of agricultural economics purdue university
Freddie Barnard

Department of Agricultural Economics

Purdue University

Purdue Agribusiness Management Simulation

objectives
Objectives
  • Overview of the simulation
  • Management tools taught
  • Contact information
  • Demonstrate the simulation - after the session
overview
Overview
  • Updated Purdue Farm Supply Game
  • Farm supply store - sells feed and fertilizer
  • Students divided into ‘teams’
  • Teams are divided into ‘markets’
  • Three interest rate scenarios
teams
Teams
  • Four positions per team

General Manager

Inventory Manager

Labor Manager

Cash Manager

  • A decision form is completed each decision
simulation time
Simulation Time
  • Each decision represents one quarter
  • Maximum simulation time is 12 quarters
  • Sales vary from quarter to quarter
  • Students provided sales records for previous 3 years
product sales
Product Sales
  • Each store sells the same four products

Complete feed

Concentrate feed

Commercial grade fertilizer

Custom blend fertilizer

  • Lost sales are reported as unfilled orders
  • Emergency orders
simulation objective
Simulation Objective
  • All stores start from an identical financial position
  • Profits determine the winning team
  • All profits are retained over the entire simulation time and determine the winning team
decision variables
Decision Variables
  • Product prices
  • Product orders
  • Emergency orders
  • Advertising
  • Credit policies
  • Storage/truck purchase vs. rent
  • Labor
  • Borrowing
  • Repaying loans
  • Investing
results
Results
  • Income Statement – current quarter (per ton and percentage of sales) and past 12 months
  • Balance Sheet
  • Sales Report
  • Storage, Truck and Labor Utilization Report
  • Actual Cash Flow
  • Market Share Report
management tools taught
Management Tools Taught
  • Cash Flow – Pro Forma and Actual
  • Breakeven
  • Profitability Linkage Model–Comparisons Over time

Peer group data

  • Pro forma Balance Sheet and Income Statement
materials available
Materials Available
  • Software
  • Manual
  • Forms
contact informaiton
Contact Informaiton

Freddie Barnard

Department of Agricultural Economics

Purdue University

403 W. State Street

West Lafayette, IN 47907

barnardf@purdue.edu

(765) 494-4242