Contract Negotiation: Coffee Trade Game

by Thomas Kull, Arizona State University W. P. Carey School of Business, and Forio

$99 / seat
Order Simulation

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Simulation Overview

Negotiations around buyer-supplier contracts are critical to supply chain communication and coordination. In this team-based simulation, students apply strategies for contract negotiation in a rapidly changing environment.

The Story

Students work in teams, managing two supply chains simultaneously: one that converts raw green beans into roasted beans, and one that converts other varieties of roasted beans into coffee blends — with the value of each blend varying based on the quality of the roasted beans. Teams compete to accumulate total profit.

Each team must create and manage the relationships within its supply chains through contracts. Because each team is both buying and selling coffee beans, the teams are interdependent — and every action has implications throughout the game. Over the course of several rounds, teams send requests-for-quotes and requests-for-information to help develop strategies and negotiate contracts. Market conditions can change at any moment, so pricing adjusts and supply chain costs fluctuate as the game progresses.

Learning Focus

  • Develop strategies for spend categories
  • Negotiate favorable contracts over multiple rounds
  • Manage and adapt contracts based on negotiation strategies
  • Recognize that negotiations are key to net income
  • Provide classroom experiences in supply management
Topics Covered

  • Contracts
  • Negotiation
Additional Information
Duration

1 to 3 hours including introduction and debrief

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