THE POTENTIAL OF PROGRAMMABLE CALCULATORS FOR PROCESSING SMALL BUSINESS SIMULATIONS New Horizons in Simulation Games and Experiential Learning, Volume 4, 1977 267 THE POTENTIAL OF PROGRAMMABLE CALCULATORS FOR PROCESSING SMALL BUSINESS SIMULATIONS Kenneth R. Goosen, University of Arkansas at Little Rock In the last 18 months Texas Instruments and Hewlett Packard have marketed programmable calculators which have tremendous programming capability. These calculators have the capability of storing programs on magnetic cards, thus eliminating the need to key-in programs each time an application is desired. The SR 52 and HP 97 both have 20 memory registers and 10 user-definable keys. Each calculator has 224 program storage locations. In addition to the standard CRT display for digital information, output may be obtained on a print unit. Each calculator contains programming features, such as conditional and unconditional branching; logical decision functions; subroutines, etc. Except for the limitations on amount of memory and printing capability these calculators have the capability to process scientific problems such as those processed on larger computers. Since the bases of all computerized business games are mathematical models, these calculators have the potential to process business simulations. The purpose of this paper is to report on an experiment in which a simulation was processed on a Texas Instruments SR 52. The simulation, an absorption costing accounting model modified to include a demand function, was specially designed for the experiment. This simulation apart from its purpose to test the potential of programmable calculators was designed for use in managerial and cost accounting courses. Absorption costing represents an important idea in these courses. In absorption costing, two variables determine net income: production and sales. A significant feature of the absorption costing model (also generally considered to be a major weakness) is that income can be increased merely by producing more units for inventory separate from demand. By producing for inventory fixed overhead can be absorbed into inventory. The absorption costing simulation model used then was relatively simple in that it required the participants to make only two decisions: price and units manufactured. The complete model used is presented below: In the equation, price and quantity manufactured are the independent variables; therefore, these variables represent the two decisions that must be made by the students. Values assigned to the other variables are the game parameters which are fixed during the play of the game. New Horizons in Simulation Games and Experiential Learning, Volume 4, 1977 268 In addition to the above equation the following equations were necessary in order to have an operational model: There is only one functional relationship in the game: quantity sold is a function only of price. Equation (2) expresses this relationship which is derived from the conventional revenue function: R = PQ - k(Q2). The programming of this model required 210 storage locations. The coding for the program is presented in Exhibit I. Since the SR 52 has 224 storage locations the capacity of the calculator was not fully utilized. However, if the model had required more than 224 storage locations a second magnetic card could have been used. Through careful programming larger models can be segmented and then linked. However, if many cards are required then processing a model can become rather cumbersome as only one card can be processed at a time. With the above model processing was very efficient in that a set of decisions was processed in less than 10 seconds. The program could be loaded and ready for use in less than 15 seconds. The output from the programmable calculator can be either CRT display or paper tape from the print units. For purposes of the simulation experiment, display from the CRT would not have been very effective in that (1) processing would have to be stopped at each point where a game value is computed, and (2) that game value would have to be copied down by hand. The PC 100 print unit eliminates this delay in processing. The entire set of values can be printed within a few seconds. Spacing of the printed values can be programmed. The absence of alphabetic output was overcome by use of preprinted income statement formats. Paper output containing the computed game values was affixed to the preprinted forms. An example of the final output is illustrated in Exhibit II. The simulation was used in the fall semester of 1976 at UALR in a class of 12 MBA students. The game results were obtained for four periods during a 75-minute class. The team decisions were immediately processed in the classroom on the SR 52 and attached PC 100 print unit. The students were divided into four teams of 3 students each. The students were told explicitly that the game was based on an absorption costing model. Furthermore, equation (1) was written on the blackboard. The students were given all values assigned to the parameters of the game with the exception of k. Additionally, the students did not know the exact nature of equation (2). Approximately six weeks earlier the students had been given two classroom lectures on absorption costing. Since the students were supposedly quite knowledgeable about absorption costing and since the simulation was of a relatively simple nature, I was concerned that the exercise might not be of any learning benefit to the students. It turned out that my concern was completely unjustified. New Horizons in Simulation Games and Experiential Learning, Volume 4, 1977 269 New Horizons in Simulation Games and Experiential Learning, Volume 4, 1977 270 Participation in the simulation experiment by the students indicated that the students’ knowledge of absorption costing was somewhat superficial. This was revealed by the students’ failure to immediately develop a game strategy inherently contained in the nature of the absorption costing model. Other things being equal, the best strategy would have been t always produce at full capacity regardless of the demand. For the firs: three periods of play all participants attempted to adjust production to demand which was determined by price. In absorption costing, assuming no carrying costs, income can always be increased by producing in excess of demand. It was not until the fourth period of play that several of the teams suddenly realized the significance of the simulation being based on an absorption costing model. Some of the students were embarrassed that they had not thought to apply the theory of absorption costing sooner in the game. The students were unanimous in stating that the significance of absorption costing was not likely to be forgotten. SUMMARY The two important findings resulting from the simulation experiment with the programmable calculator were: (1) simulations can be processed in the classroom on programmable calculators, and (2) simulations processed on programmable calculators can result in significant learning experiences. Table of Contents Volume 4, 1977 Double Play for Gaming Effectiveness Adaptive Rule Changes in Computer Simulation Gaming Œ A Means of Pedagogical Reactive Interchange Monte Carlo Simulation in Personnel Management Training Teaching About the Implementation of Job Redesign Using Simulation and Group Discussions An Interactive Simulation of Private Sector Collective Bargaining Leadership Evaluation and training through Behavioral Simulations: Method, Results and Future An assessment of the Effect of Experiential, Simulation and Discussion Pedagologies Used in Laboratory Sections of an Introductory Management Course An Experiential Understanding of the Trust Dimension Using Consulting Cases to teach Business Policy An Experimental Testing of Teaching Methodologies in Marketing Interpersonal Skill Development: The Experiential Training Unit (ETU) and Transfer of Training An Analysis of the Relationship between Personality characteristics and Preferred Styles of Learning Analysis of Effective Communication Skill Development in Graduate Business and Engineering Experiential Education Changing Perceptions of Learning in a Simulated Environment Student Perceptions: Simulation and the Corporate Policy Course Degree of Uniformity in Achievement Motivation Levels of Team Member: Its Effect on Team Performance in a Simulation Game Channel Conflict, Cooperation and Control: an Experiential Learning Exercise Differences in Experiential and Non-Experiential Learners' Reactions to Conflict between Individual and Organizations Behavior The Evolution and Evaluation of a Required, Senior-Level Course in Experiential Business Applications Building Management Skills through Problem Solving A Live-Case Approach to the Business and Society Course Experiential Learning: Toward the Development of a Theoretical Base and the Identification of Variables and the Hypotheses to Guide Research The Role of the Administrator in Experiential Learning and Simulations Some Thoughts on a Theory of the Use of Games and Experiential Exercises Three Applications of the Management of Learning Grid An Analysis of ABSEL: Its Past Achievements and Future Prospects New Horizons in Simulation Research Prediction of Academic Achievement in a Simulation Mode via Personality Constructs Sex Differences in a Bargaining Simulation COM-GAME: A Commodity Trading Game for Use in an Introductory Business Statistics Course A Financial Institution Management Game with Direct Participant Interactions A Non-Computerized Marketing Planning and Strategy Game Delphi in the Classroom: A Demonstration of Forecasting Economic Activity The Potential of Programmable Calculators for Processing Small Business Simulations Can a Small Predominantly Clack University Incorporate the Computer Simulation Gaming Teaching Methodology into it Curriculum Measuring the Effect of an Experiential Exercise Experiential Learning - Analysis of a Partial Success Predicting Participants' Performance and Reactions in an Experiential Learning Setting: An Empirical Investigation A Simplified, Non-Computerized Marketing Channels Game Manufacturers and Retailers: A Negotiation Game for Beginning Management Students Petroleum Management Game A Securities Dealer Simulator SIM ECO SOC with Business Curriculum Modules: A Simulation for Business Ethics and Morals The Picnic: A Perceptual Errors Exercise Salt III; an Experiential Exercise to Highlight the Interpersonal Dynamics Involved in the Negotiation Process Experiential Exercise on Values, Attitudes and Conflict Resolution in Organizational Behavior Kick'N Go: A Product Management and Social Responsibility Dilemma The Use of Self-Assessment Work-shops in a school of Business Administration The Dilemma of Self-Perception