How do you win the beer game supply chain?
How do you win the beer game supply chain?
How Do You Win At Beer Game? By the end of the game, aim to have 250 items in your inventory. You should keep your cost under $8 if you have excess inventory and backorders. Don’t increase the overall cost of the supply chain by excessive order behavior on your part.
What is beer game in supply chain management?
The Beer Game is a didactic tool to simulate information and material flows along a supply chain from a factory to a retailer. The continuous evolution of inter-organisation configurations is challenging such a traditional concept of supply chain.
What are the lessons learned from beer game simulation?
5 Key Lessons to Learn from a Beer Game Session
- Understand the role and the challenges of a supply chain manager.
- Collaboration, teamwork and trust make THE difference.
- Why “bad systems beat good people” and making the case for a systematic approach to supply chain management.
- Agile supply chains achieve better results.
How do you conduct a beer game?
The rules of the game are simple – in every round each player performs the following four steps:
- Check deliveries. Check how many units of beer are being delivered to him from his supplier in the supply chain.
- Check incoming orders.
- Deliver beer.
- Place outgoing order.
How do you reduce the bullwhip effect in beer game?
Here are some simple remedies:
- Shorten the supply chain by eliminating intermediaries.
- Accelerate supply and reduce replenishment time.
- Limit order sizes and avoid wrong incentives.
- Make the order and inventory status in each step of the supply chain transparent to every participant.
How long does it take to play the Beer Game?
30-60 minutes
Fundamental rules A game extends over a fictitious year and covers 50 rounds of one week each in the standard setting. Each round takes 30-60 seconds and the total playing time is thus 30-60 minutes. The entire game must be played in one go. In other words, you cannot take a break during the game.
What is the goal 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.
Why it is called Beer Game?
The name is derived from a classic role-playing game developed at MIT in the 1960s. Professors at the time found that they could grab university students’ attention more effectively by calling it The Beer Distribution Game.
What is the goal of the Beer Game?
How long does the beer game take?
There are four players – the beer retailer, the wholesaler, the distributor and the manufacturer. It lasts an hour at most and simulates up to a year in the beer-distribution supply chain.
How can companies prevent the bullwhip effect in relation to beer sales?
The best means of preventing the bullwhip effect is clear communication all along the supply line—particularly in relation to customer demand.