CED 6910 Capstone | Activity 4.2: Inter-industry Purchase Orders

Adapted from Hawkins and Matthews (2009) | Northeastern University College of Professional Studies

How this works

A retailer places one outside order for 1,000,000 cans of soft drink. That is round zero, final demand. The soft-drink producer cannot fill it alone: it orders empty cans and treated water, and those suppliers order aluminum, water, cans, and a little soft drink in turn. You are assigned one of the four industries. In each of four rounds you compute the orders your industry places, commit them, and only then see the whole round. The computer plays the other three industries.

Supplier (down) / buyer (across)Soft-drink producerCan manufacturerAluminum manufacturerWater-treatment facility
Soft-drink producerNoneNoneNone5 cans of soft drink per 10,000 gallons of water
Can manufacturer1 empty can per can of soft drinkNone1 empty can per 2 pounds of aluminumNone
Aluminum manufacturerNone1 pound of aluminum per 32 empty cansNone5 pounds of aluminum per 1,000 gallons of water
Water-treatment facility1 gallon of water per 10 cans of soft drink5 gallons of water per 1,000 empty cans1.58 gallons of water per pound of aluminumNone

Notes: Table 1, adapted from Hawkins and Matthews (2009). Read down a buyer's column to see what that industry must order for each unit it produces. Some coefficients are synthetic teaching values; the aluminum column's can input represents recycling.

IndustryWastewaterMixed solid waste
Soft-drink producer8 ounces per 10 cans1 pound per 100 cans
Can manufacturer5 gallons per 1,000 empty cansNone
Aluminum manufacturer1.58 gallons per pound of aluminum2.7 pounds per pound of aluminum
Water-treatment facilityNone1 pound per 1,000 gallons of water

Notes: Table 2, adapted from Hawkins and Matthews (2009). Waste is a satellite coefficient attached to an industry's output, not an inter-industry purchase order.

Your task: commit a prediction before round one, compute your industry's orders in each round, and finish with the four-round totals. Your round record is the anchor for the Module 4 discussion and the required artifact.

Enter your name to begin