Project Description
The Capacity Game was developed for the Lee Kong Chian School of Business to teach students about the key tradeoffs involved in different capacity expansion strategies. The key concepts include demand forecast, fixed cost of capacity expansion, leadtime to build capacity.
Students will learn about different capacity expansion strategies, such as chasing, leading, lagging and hybrid strategies. This allows students to learn interactively about the tradeoffs involved in each strategy.
Teaching Strategy
The game is played in class with each team being responsible for one company out of several planning their capacity expansion and production. These other competitors are programmed to act in pre-determined ways. Each team plays essentially with the system and does not interact with other such teams.
At each game turn, each team makes decisions on the current production quantity and capability expansion quantity of their company. Students will also be able to download market data to better reinforce their decisions.
The student team with the highest cash balance at the end of the game wins.
For access to the project, please contact CTE at cte [at] smu.edu.sg