Quickbooks - Supply Chain Game


Using the sample QuickBooks company, Century Kitchens, as a starting point to build a 3-tier supply chain network (see the chart below).
Centry Kitchens and its alike (competitors) are located at the middle layer.

Supply chain network diagram
Tier 1 - Vendors : Assuming every vendor can supply all inventory parts that Century Kitchen carries.
Tier 2 - Century Kitchens (and competitors):  Supply 19 product mixes to its customers (find the 19 product mixes from past invoices).  Each product mix is considered as one product now.
Tier 3 - Customers: Customers place orders to Century Kitchens and its competitors.
Currently, there are transactions in QuickBooks file of Century Kitchens covering 1/1/2009 to 3/31/2009.
We will divide the class into four groups, a tier 1 group, a tier 2 group, a tier 3 group, and finally an auditors' group.

Assumptions and Preparation:

  1. We will make each week in reality a month in the QuickBooks game.  Transactions are only allowed on the first, tenth, and the twenieth day of the month, for example, 4/1, 4/10, 4/20, 5/1, etc.  Since our class is on Wednesday, we will use Thursday as the first day of a month, Saturday as the 10th of a month, and Monday as the 20th day of the month.
  2. We need to create a few startup companies to serve as vendors and customers (retailers), assuming all involved parties are located in New York State.
  3. We need to create an Excel file with formulas to calculate Federal and NYS income tax withholding, unemployment insuarence (both state and federal if applicable), Social Scurity Tax, and Medicare.  We will assume no benefit programs (such as 401K or Healthcare) provided to employee.
  4. There will be lead time for each type of transactions.  For example, if you order on 4/10, you will receive delivery either on 4/20, or 5/1 and so on, depending on the detailed rules.

Jobs for each group:

Auditors' group: This group sets the rules for transactions, audit the books of  other groups, and provide support on how to use QuickBooks.  This group place orders to Tier 2 companies. [No need to setup a company.]

Tier 1: Each member in this group will setup a new company, which supplies all inventory parts tier 2 members need.  Assume the new company started its operation on 1/1/2009.
Tier 3: Each member in this group will setup a new company, which places orders to the tier 2 companies.  The group sells its products to the auditor group with a 15% markup.
Both groups need to add some employees to its file and set their salary or hourly wage, enter products/services it provides.

Tier 2: Companies in tier do not need initial setup.  However, their transactions are more complicated.