15 Pages Posted: 5 Apr 2010
This competitive bidding game consists of four teams, which can be two to four students. (Several games can be played simultaneously.) Each team runs a printing company that has a capacity of forty press hours a week plus overtime. The case gives budgeted costs, saying which are likely to be variable. Teams bid on lists of jobs and schedule the work they win. Too much work incurs late penalties; two little leaves unused capacity. Four rounds of bidding are scheduled and at the end each team computes its income statement.
Keywords: competitive bidding, cost analysis, cost behavior, production management
JEL Classification: A20
Suggested Citation: Suggested Citation