What does the Beer Game teach you?
What does the Beer Game teach you?
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. Each group can highly influence the entire supply chain by ordering too much or too little which can lead to a bullwhip effect.
How do you reach equilibrium in the Beer Game?
You achieve equilibrium when each player reaches the target stock level and orders the same amount of beer each week for four consecutive weeks.
What is blue whip effect?
The bullwhip effect is a supply chain phenomenon describing how small fluctuations in demand at the retail level can cause progressively larger fluctuations in demand at the wholesale, distributor, manufacturer and raw material supplier levels.
Who invented the beer game?
The beergame (or beer distribution game) was originally invented in the 1960s by Jay Forrester at MIT as a result of his work on system dynamics.
What is shortage gaming?
Shortage gaming: customers order more than they need during a period of short supply, hoping that the partial shipments they receive will be sufficient. The result is no visibility of true customer demand. Free return policies.
How do you stop bullwhip?
How to Avoid the Bullwhip Effect
- Take detailed stock of not only your own inventory, but also your suppliers’ inventories.
- Consistently re-evaluate the amounts of safety inventory you have, as well as your minimum and maximum inventories.
- Communicate clearly down the supply chain.
- Cut down on lead time and delays.
What is the supply chain game?
The Supply Chain Game is an online supply network simulator. In a typical setting students are divided into teams and compete against each other in one or two assignments lasting a week each. The game is designed for use in supply chain electives or core courses that emphasize supply chain management.
