December 2017 Student Simulation Competition - Contest Overview

1st
The Wolves Of
Wall Street
Model
Team Photo
2nd
The Quantums
Model
Team Photo
3rd
Awe-Sim
Linkers
SmartDrill

Overview of Contest:

There are two ways to enter the Simio Student Case Competition. You can either enter directly or through class participation. This contest, we had 28 teams enter directly (82 students) and 32 instructors with 223 teams (794 students) for a total of 251 teams (876 students).

We also had representation from the following 13 countries:

  • Chile
  • China
  • Columbia
  • El Salvador
  • Germany
  • Guatemala
  • India
  • Mexico
  • Puerto Rico
  • Slovenia
  • Spain
  • Turkey
  • USA

 

The 876 students came from these 36 schools:

  • Auburn University
  • Business School Sichuan University
  • China University of Mining and Technology
  • College of Engineering Trivandrum
  • Escuela Superior de Economia y Negocios
  • Florida Inst. of Technology
  • Instituto Tecnologico Autonomo de Mexico
  • Instituto Tecnológico y de Estudios Superiores de Monterrey
  • Jožef Stefan International Postgraduate School
  • Louisiana State University
  • Montana State University
  • New Jersey Institute of Technology
  • North Carolina State University
  • Ohio University
  • Otto-von-Guericke-Universität Magdeburg
  • Pennsylvania State University
  • Pontificia Universidad Católica de Valparaíso
  • Rochester Institute of Technology
  • Sabanci University
  • Texas A&M University
  • The George Washington University
  • The University of Texas at Arlington
  • Universidad Arturo Prat
  • Universidad Centroamericana José Simeón Cañas
  • Universidad de Concepcion
  • Universidad de El Salvador
  • Universidad de San Carlos de Guatemala
  • Universidad EAFIT
  • Universidad Panamericana
  • Universidad Politécnica de Madrid
  • Universidad San Sebastián
  • University of Houston
  • University of Illinois
  • University of Michigan- Dearborn
  • University of Puerto Rico Mayaguez
  • University of San Diego

Summary of the Problem:

SafeBank is a major custodian bank in the global financial market.  One of the services SafeBank provides is changing currencies for their clients.  For example, if a client wants to buy equity in a German company denominated in EUR, and the client wants to spend USD, SafeBank will take the USD and give out EUR, which allows the client to conduct their transaction.  SafeBank makes money by charging the client a small percentage on each exchange.  There are thousands of random, unpredictable transactions every day, and they require SafeBank to hold cash in each type of currency.  At the end of each day (6:30PM ET), SafeBank conducts a settlement with CLS Bank (Continously Linked Settlement Bank) to reset the quantities of each type of currency.  For example, if over the course of the day the sum of all transactions causes SafeBank to have a net increase in USD and a net decrease in EUR, they will give the excess USD to CLS and CLS will return the equivalent amount of EUR.  CLS charges SafeBank a small percentage on this exchange.  This confines the risk to SafeBank to a single day (known as intra-day liquidity risk).  If SafeBank runs out of any type of currency prior to 6:30pm ET, they can conduct a swap with one of their counterparties.  This is essentially the same service provided by CLS, but it can occur anytime throughout the day.  Swaps help mitigate risk, but they are expensive relative to CLS.

In addition to financial considerations, SafeBank is legally obligated to manage risk.  If they are unable to support client transactions for any reason, it can cause a major disruption in the global financial market.  Accordingly, they must prove to the government that they have sufficient cash on hand to avoid this situation across a range of stressing scenarios.  Choosing the amount of each type of currency to keep on hand is a difficult problem.  Students will be asked to simulate system activity (e.g., cash flows from transactions, swaps, and settlements) in order to find the profit maximizing quantities subject to acceptable risk.  This will include analysis of revenue, cost, and risk.  These analyses will be completed across a range of scenarios including:

Read the full problem!

Judging Criteria:

The judging was based on:

  • Quality/clarity of the presentation
  • Analysis/use of input data
  • Modeling detail/approach
  • Model internal documentation
  • Verification and Validation
  • Quality of animation
  • Experimentation/exploration of alternatives
  • Analysis of results
  • Quality of the recommendations
  • Overall project quality and Executive Summary

For more detail, see the Contest Judging Criteria.

Judging Panel:

Academic and Commercial:

Angelo Innamorato Bonnie Yue Ed Williams Ernest Bhero

Angelo Innamorato
Vice President, Liquidity
Risk Management @ The Bank of New York Mellon (USA)

Bonnie Yue
Simulation Developer at Clearpath (Canada)
Ed Williams
Senior Technical Specialist at PMC and Lecturer II, Business Analytics at College of Business, University of Michigan – Dearborn (USA)
Ernest Bhero
Advocate of the High Court of South Africa & a Professional Engineer at University of KwaZulu Natal (South Africa)
       
Laura Silvoy Luis Enrique Herrera Del Canto Mustafa Gocken Paolo Renna
Laura Silvoy
Healthcare Systems Engineer at Array Architects (USA)
Luis Enrique Herrera Del Canto
Associate Professor at the Monterrey Institute of Technology (Mexico)
Mustafa Gocken
Assistant Professor at Adana Science and Technology University (Turkey)
Paolo Renna
Professor in Manufacturing and Production Systems at University of Basilicata (Italy)
       
Chinnatat Methapatara Raul Zuniga Radu F. Babiceanu  
Chinnatat Methapatara
Operations Research Advisor at FedEx Corporation (USA)
Raul Zuniga
PHd at Universidad Arturo Prat (Chile)
Radu F. Babiceanu
Associate Professor of Systems Engineering at Embry-Riddle Aeronautical University (USA)
 

Simio LLC:

Dennis Pegden Christine Watson Anthony Innamorato 
Senior Consultant
Dr. C. Dennis Pegden
Founder and CEO
Christine Watson
Senior Application Engineer
Anthony Innamorato
Senior Consultant

 

December 2017 Contest Winners

First Place

The Wolves of Wall
Escuela Superior de Economía y Negocios

Team Introduction Project Video

more details >

Second Place

The Quantum
Universidad Panamericana

Team Introduction Project Video

more details >

Third Place

Awe-Sim
Penn State University, The Behrend College

Team Introduction Project Video

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Top 20 & Honorable Mentions

The top 20 teams out of 251 

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