Experiential Learning for Logistics and Supply Chain Management Using an SAP ERP Software Simulation

This teaching brief describes a three-echelon supply chain simulation that involves complex decision making in a dynamic environment. Using a team-based logistics simulation operating on a live commercial-software application (SAP ERP) as a foundation, a supplemental exercise is proposed for deeper learning of transportation and logistics aspects of supply chain management. Sales and operations planning is used during four simulated months to develop detailed procurement strategies and logistics plans to enhance the baseline supply chain management (SCM) concepts of inventory control and forecasting in a distribution network. Transportation planning and scheduling complexity is introduced as students manage freight to conform to motor carrier weight regulations. The combination of commercial software and extensive real-world planning allows students to assimilate numerous SCM concepts in a realistic environment. Student opinion survey data shows that students are highly engaged by the detailed nature of the simulation, which they concluded aided their conceptual learning. Additionally, the inclusion of the SAP ERP commercial software becomes a competitive advantage during collegiate recruiting by potential employers.