Your role:
{% if role == 1 %}
You are assigned to play a role of DEMAND PLANNER. Your task is to make POINT and DISTRIBUTION FORECAST. Your role stays the same throughout the experiment.
{% endif %}
{% if role == 2 %}
You are assigned to play a role of OPERATIONS MANAGER. Your task is to make SERVICE LEVEL DECISIONS. Your role stays the same throughout the experiment.
{% endif %}
Group Structure:
{% if role == 1 %}
You are matched with another participant whose role is operations manager. Your group will be FIXED until the end of the experiment.
{% endif %}
{% if role == 2 %}
You are matched with another participant whose role is demand planner. Your group will be FIXED until the end of the experiment.
{% endif %}
Decision sequence:
Demand planner makes point and distribution forecasts first and operations manager then makes service level decisions after receiving demand planner's forecasts. Please wait while your partner makes deicision.
Payoff structure:
Your payoffs depends on the GROUP PERFORMANCE, measured by the mismatch cost of the automated order quantity. Initially, you will have the start up fee of 5 dollars.
In every selling period, the computer program will calculate your MISMATCH COSTS (tokens). The corresponding cash earnings (cents) will be approximately:
Real Cash Earning (cents) = 139 – 0.04 x Mismatch Cost (tokens)
Note that your cash earnings will be negative if your mismatch cost for that round goes above 3241. We will pay your total earnings for all the periods upon the completion of the game by rounding them
to the highest dollar amount and making sure that you receive at least $11 (participation fee).