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Planning Horizons

Decisions affect outcomes, but timing is everything. These planning horizons show how and when certain decisions lead to revenue and financing.

All decisions for the upcoming quarter-year must be made before the quarter begins, because of the turn-based nature of the simulation. Advanced planning helps to avoid missing any opportunities.

For each diagram below, the decisions (squares) and outcomes (ovals) that have the same background color occur during the same quarter.

Note: The same color does not mean the same quarter in all planning horizons.

ClosedNecessary decisions to get revenue from customers

Revenue comes from shipping finished goods, and is limited by finished good inventory or orders, whichever is less. Three resources must be in place to produce finished goods at the same time sales reps are out getting orders from customers.

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This chart shows the necessary decisions, only. Additional decisions will also affect these outcomes: e.g., decisions affecting line speed help determine line capacity, and decisions affecting market share and market size help determine orders.

 

ClosedNecessary decisions to expand regionally and get revenue, within 3 quarters

Before you can make any decisions to hold assets in a new region, you must petition the local government for permission to operate there. This takes one quarter. Immediately thereafter, your company can establish a sales office and start calling on customers, everything necessary to get orders.

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ClosedNecessary decisions to finance - notifying the SEC and then transacting

Your company must notify the Securities and Exchange Commission [SEC]Securities and Exchange Commission is the governmental overseer of corporate capital transactions that regulates the securities markets and protects investors. notification in advance for all equity and long-term debt transactions. See individual decisions for further constraints.

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