What is beer game in supply chain?

The beer distribution game (also known as the beer game ) is an educational game that is used to experience typical coordination problems of a supply chain process. This game outlines the importance of information sharing, supply chain management and collaboration throughout a supply chain process.

What is the purpose of the beer game?

The aim. The traditional aim of the Beer Game is to minimize the total cost for everyone in the supply chain by maintaining low stocks but nevertheless managing to deliver all orders. It is in other words not the intention that you should try to reduce your costs at the expense of the other players.

What are the differences between Barilla and beer Game Supply Chains?

In the Beer Game, the supply chain is linear,with four players: retailer, wholesaler, distributor, and the factory. Another differencebetween the two supply chains is that the Barilla supply chain is affected by promotions, while the Beer Game supply chain is not.

Who invented the beer game?

Jay Forrester, Professor Emeritus of Management at MIT, developed The Beer Game in the 1960s as a simple simulation of the complexities of industry.

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How do you win the Beer Game?

Try to reach an inventory target of 250 by the end of the game. Keep your cost down Both excess inventory and backorders increase your cost. Keep your total cost below $8.300. Keep overall cost down Excessive order behaviour on your part will lead to shocks in the supply chain, which increase overall supply chain cost.

How do you mitigate the bullwhip effect?

Maintain consistent, smaller order sizes – Offering bulk discounts may attract customers but it also unnecessarily increases inventory levels and magnifies the bullwhip effect. Encouraging orders according to customer need instead of bulk discounts helps mitigate the bullwhip effect.

What is meant by bullwhip effect?

The bullwhip effect (also known as the Forrester effect ) is defined as the demand distortion that travels upstream in the supply chain from the retailer through to the wholesaler and manufacturer due to the variance of orders which may be larger than that of sales.

What is e beer?

EBeer is based on a board game developed at MIT several decades ago, to teach system dynamics in the context of a supply chain. The objective of the game is to minimize the cost of fulfilling demand. Cost is a function of backlogs and inventory. A game typically takes 30 to 40 minutes.

What is root beer game?

Based on the classic Beer Game developed by Jay Forrester at MIT, this team-based simulation portrays a supply chain with four links: factory, distributor, wholesaler, or retailer. Each week, the participants examine inventory, anticipate demand, and send orders to the adjacent connection in the supply chain.

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