 Okay, welcome back. So now we are going to discuss your questions. Let's start with one question that Odezoki made, it's about how is cube utilization actually calculated? So you need to go to the operations area in the company and have a look to the warehousing report and then you can see that you have the capacity of an inbound and outbound warehouse. You also have the use of this inbound and outbound warehouse and then the cube utilization is just the ratio between capacity and use and this is the percentage that you can see. So you see 94.2% means that this is the ratio between the capacity and the use of this inbound and outbound warehouse. Yeah, for example, you actually set the capacity of these warehouses in your operations tab. So if you set your capacity very high, what you end up doing is you have this ability that you can store more in that warehouse and so your usage can be, you can have an average amount that's happening in that warehouse. And so if your average is the same as your usage, you have 100% utilization but you also might have times when you have overflow and so at that point you're paying extra on the overflow. You have to keep that in mind when you're when you're setting these levels. Yes, fully. You need to keep this in mind when you are thinking about this decision about which capacity you expect to use during this round because if not you are going to pay more or extra money because of this extra capacity. So you don't necessarily want to use your entire warehouse? Yeah, definitely. Definitely. What else? In the same report of the SOC, this is also a question from other SOC, is it total amount hours you use or are there specific to the activity to receiving or distributing or how does it work? So same report. We are in the operations area, warehouse and report and we have two charts. The first one refers to the inbound warehouse, the second one refers to the outbound warehouse. So in the first chart you can see per week the number of hours that you need and then your decision is okay, how many permanent employees are we going to have, how many extra hours do we need in order to cover the needs that we have in this specific week. So this is kind of a little bit odd. There's a couple little caveats in this. For example, if your weekly usage is 80 hours, you might think two employees can cover that. But say 30 hours of that came on one day, you need to 30 hours on one day, you still have to pay overtime for that day, you might have to have extra employees on that day. So this is just the amount that you need through the whole week. But each day you might have differences that you have there. So try to keep that in mind as you set the amount of employees in that warehouse. Okay. Yeah, perfect. Gaurab. So Gaurab asks, is inbound transportation part of the contract index with suppliers? If no, where is it in the financial? So again, you can go to the financial report. The answer is no, it's part of the purchasing cost. So if you have a look to the purchasing cost, this cost includes the transportation cost with the supplier. However, there is a column close to the purchase cost that is called transport cost that you have the breakdown of this transport cost. So you have the information on the transport cost, but answering your question, the purchase cost includes this transportation cost. Yeah? Anything you want to add here? That covers it all. Okay. Perfect. Great question. It's a great question. Yeah, all of them. So one more question, is it possible to see round zero in the financials? Unfortunately not. We have every single round, you can see your current round and your previous round, the immediate previous round. So no, if you're playing round two, you can see the results of round one and the current round two. Yeah. More questions. Okay. Thank you. Let's see. Okay. So the question from Rafael Rosario, and the question is, how could I estimate the standard deviation of attained shelf life? Because I sold my attained shelf life to customers, but since it's the average, I went down from 3.92 to 11%, negative 11% ROI. So it sounds like there's a... This is a very good question. Yes. And it's related also with one topic we want to cover that is the obsolescence of the travel. So, Connor, please. Absolutely. Because Connor was covering the obsolescence and he said, we need to insist in this concept. So yeah. This is something that's fundamental to the game that you need to understand. When I set my obsolescence level, let's say I say I will give you this product before five weeks have passed. After that five-week mark, I have to throw it away. I can't give it to you. So what I end up agreeing with you if I give you a 75%, I give you a 75%. What is the shelf life agreement? That means in five weeks, I have to give you this product. So no matter what the shelf life agreement that I have with you, the average shelf life that you attain from me is actually going to be higher than that level I agree on because there's no possible way for me to ship you a product that has a lower shelf life. So if you're seeing 84% when you're agreed upon a 70%, you don't necessarily want to set that to 84% because you can't ship anything below 84% at that point. So then it has to be higher than 84%, no matter what. And recall that the total shelf life was 20 weeks for the finished products. And 54 weeks, how many was for the inbound for 52 weeks for the components and 20 weeks for the finished products. So you need to keep this in mind when you are negotiating with your customers. So this is a very good question, yes. More questions, Kikitos. How do the lines produce? Do they try to supply the demand to maintain the safety stock of products at full rate constantly? Okay, that is a good question. So if I'm understanding what the question is properly, the way that the lines produce, it's not necessarily on a constant rate. So you might have the finished goods in your warehouse are start running low, so you need to order up to your start level, or you need to get your levels back up. So you'll start a production run of the product that's lower. So if I don't receive a lot of orders for a few weeks, when products start expiring, I might have to then replenish them. So my production isn't always constantly running. Now if I have a good flow through in my system, my production should be relatively constant. So it's kind of trying to manage that in a way that you can have a relatively constant production. Yeah, indeed, in this area of the company, I guess that the only decision they can make is about the line that you are going to open, not too much decisions and the number of shifts that is going to be the number of shifts. This is the decision that you can make now in round three and round four. So there is not too many decisions that they can make in this area. So a lot of this actually kind of has to go with how you set up your sales agreements. So depending on what your sales agreements are, that will affect your production schedules as well. Yeah. Pedro Reyes, he said, I would like more information on the effect of having a very high shelf life agreement with customers. OK, again, yeah, it's related again with the absence of the product. So I think you already covered this question previously. We can go a little bit further on, I suppose. We can go further. Yes, definitely they can negotiate this in the contract index that they have. And this is going to affect the price that your customer is going to pay you. So playing with this, you are going to have a higher or lower price with your customer. So you just have to make sure that the shelf life that you actually are attaining is close to the one that you're giving your customer. Because if what you give your customer is lower than the one you. So if I say, I'll give you a 70% shelf life and I'm actually when I actually ship to you, I'm giving you a 40%. Then there's not shelf life service level service in that case. Then I have to pay fees to you in order because I'm giving you less than what we agreed on. So I would say before making this decision, have a clear idea about which service level do you want to offer to your customer. Make this decision according to this service level that you want to agree with them. And then have a look to the contract index because definitely both the decisions are going to impact in this contract index that you have with your customer. Yeah. So this is a very good question, Pedro. Yes. What else? Yeah. I would like to know more about order management strategies. And which strategies are the top players adopt. Okay. So yeah, we can go to and show this. Let's go to top players. If we could go to the slideshow in slide. I can't. Oh, okay. No, but we can. Yes. So let's go to is in a slide nine of this presentation and order management that I guess is referring to the components. I'm thinking that it's referring to the components. To the components. I guess Vinicius, you are referring to the order management with the suppliers and the components. So as we mentioned before, what we have here, you should go to the purchasing area and have a look to the relevant KPIs in the purchasing area. So what the best players did is in terms of rejection of components, they negotiate up, let's say around 2% of rejection of components. Also, they try to reduce the raw material cost. However, the strategy that the top three players follow in terms of delivery reliability was a slightly different. So this depends on which reliability you want to have with your suppliers. But connecting to this decision, you need also to take in consideration the quality of the components you are going to buy. You also need to take into consideration how far are your suppliers from your distribution centers. So the time is another thing that you need to take into consideration. And finally, you are going to agree a level of reliability with your supplier. And based on that, you are also going to have a contract index with your supplier. And the price you are going to pay them is going to depend on the reliability. Also depends on the quality of the components, depends on the transportation cost. What else can they decide? Quality, transportation, reliability. At this level of difficulty, I think these are the three decisions you can make. And you should take into consideration. Yeah, and so some of the top players that did this, they actually matched this really well and they aligned it with their supply chain strategy. So let's say I have a smaller purchasing, if I order a smaller service level, I have a smaller service level in purchasing. I might counter that by having higher amounts of goods in my warehouse. So I'll have higher safety stocks in my warehouse because I have less service level coming into that warehouse. Yes. Yeah, I also want to mention that these numbers here. So we also have a huge number of participants that say they achieve one ROI in round one, but the results in round two was worse than in round one. So we look into some of these cases and we observe that this is good to happen because this means that you are taking the risk of making different decisions and see how this is going to impact in the final result of the company. The thing that you should have in consideration is you need to make this decision. I need to play with the game and see the impact, but always have in mind your primary strategy because you need to be aligned with this strategy. So in some cases what happens is you make different decisions and these decisions were not aligned with your primary strategy. That's why your ROI at the end is lower than in the previous round. So this happened to more than 600 students that they had a worse score in round two than in round one, which is great because this means that you are playing with the game, you are making different decisions and see and now you have the opportunity to see the impact of these decisions on the ROI of the company. So let's see if we have some questions. Actually, I'll add a little bit of a comment. So thinking from the perspective of your perspective specifically, knowing that there are people that are doing extremely well, even if you're making a 3% ROI, you realize if you want to do very well in the game, you want to get up to that 6% or 7% so you can compete with them. And so you might take extra chances to get to that point. And so, for example, in the international competition last year, I was at that same level where we were making this 24% or 27% ROI in one of the rounds. And in the next round, I knew I needed to make 40% to even have a chance to compete with them. So we would take more chances than we would than we would normally do, just to do the best that we could in having the ability to even win the competition. So I'm guessing some of the students are taking more chances than they should, just to be in that top level and have the chance to be in those top players. Yeah, and taking more risk. Yeah, taking more risk. Yeah. Which is great. You have four rounds in the game. The main goal here is that you learn and you learn how different decisions are interconnected in the supply chain and how the decisions in different areas impact the supply chain of the company, the performance of the company. So the game is all about that. I encourage you to play and to try different strategies, to try with different decisions and see the impact that this is going to have in the performance of the company. Now, I want to mention one more thing. Round one and round two, you have exactly the same decisions that you can make in a level of difficulty number one. Rounds three and four, you are allowed to make more decisions. It's level of difficulty number two. The number of decisions you can make now are higher. So it's going to be a little bit more complex, but you know better how to play the game. And you also have a good sense of some of the decisions, how these decisions impact the performance of the company. So now you are going to be allowed to make more decisions in round three and round four and see how this is going to impact the performance. So Igor, I think we already answered your question, what kinds of mistakes do you see? The main mistake is the one that I mentioned before. Is those students that make changes in some areas of the company and these changes were not aligned with the primary strategy? This is my takeaway. I don't know if you... I'm right there with you. Yeah, okay. What else? Odezuki, can I control the number of shipments to customer? When you pay payment terms, what do you think, Connor? That one's kind of a tough one. So with customers, I think in level two, you'll have the ability to determine how big the shipments are will be. So you can kind of control the numbers that you have in that. So if you will only ship out a full pallet, they have to order at least a full pallet worth to ship out. I'm pretty sure that in level two, they are allowed to make this decision, but not in level one, Odezuki. So you will have the opportunity to make this decision in round three and round four. Yeah, what else? Okay, so I like this last one. With the MIT scoring, considering the average instead of the last ROI, it's not so good to take these risks. Okay, so what we can do, yeah, this is a good point. What we can do, Fabio, and you're one of the top students, yeah? Is he Fabio Castro? He scored very well. So what we can do is share with you both the statistics. We can calculate the best per round, in the development of the previous round, and we can also calculate the top student based on all of the rounds. And we will share that. Indeed, the first connection is doing round by round for the international competition that they are using this criteria. We really want to combine these statistics with the evolution among the game. So we can share both. I'm with you. We will share both. I really encourage you to take the risk. Why not? And also, if you think about it from somebody who scored, say, 2% in round one, they know that the best player scored a 6%. And so to get their average even close to where that other player was, they have to exceed them by an amount that really brings them up to that same average level. So you have to think that at some point, you really have to really do well if you didn't do so good in the first round, in order to get that average up. I like the Pedro questions. Pedro said, do you guys have an Excel model layout suggestion that my guide asks on how to build the model? So Pedro, no. We have a model, but we don't want to share the model. And we'll explain why. The game at the end is a game. And the most important thing is you need to play it in order to understand the trade-offs and how it works. We indeed, in this debrief, we want to share with you some of the takeaways we have for the results. But it's all about you. You are the VP of this company. You have a problem. The ROI is negative ROI. You need to help the company improve the ROI. And you have learned many different concept techniques, tools, and SCX courses. And we want you just to apply this concept in this game and bring you the opportunity to play with different decisions in supply chains. So we can provide the model. But I don't think from the learning point of view is the best thing we can do. I think the best thing from the learning point of view is to take the risk to prove different strategies. And learn through failure. Yes, and failure. And you have four rounds. And that doesn't matter. The important thing is not to have the high risk score. It's just to learn how your decisions has an impact in the performance of the company. So I really encourage you to make your own decisions to play and to learn based on the failure, the success, and everything in the game. Absolutely. So I think it's about time to wrap this up. Yes. OK, perfect. So thank you all for your questions. They are very good. Yeah, and just to remind you that we are going to open round three. We're going to open round three. It's going to be open until next Wednesday. A level of difficulty too. So you can make more decisions. Very good luck. So I hope you enjoy it. Thank you so much. Yes, have a good week.