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  • Beer Game

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    D Wahyu Bawono
    270 visualizzazioni7 pagine
    The document describes The Beer Game, which is designed to simulate supply chain dynamics. The game involves four players representing different stages in a supply chain - manufacturer, distributor, wholesaler, and retailer. Each player receives orders from the next stage and places orders with the previous stage. Players incur costs based on inventory and backlog levels. The game demonstrates that players overreact to changes in demand or orders, amplifying fluctuations down the supply chain. This can lead to stockouts or excess inventory as orders are eventually filled. Analyzing thousands of games shows players at each stage tend to overreact at similar times, regardless of order amounts. The lessons are that lags in information and fulfillment cause problems, and inventory can help service

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    The document describes The Beer Game, which is designed to simulate supply chain dynamics. The game involves four players representing different stages in a supply chain - manufacturer, distributor, wholesaler, and retailer. Each player receives orders from the next stage and places orders with the previous stage. Players incur costs based on inventory and backlog levels. The game demonstrates that players overreact to changes in demand or orders, amplifying fluctuations down the supply chain. This can lead to stockouts or excess inventory as orders are eventually filled. Analyzing thousands of games shows players at each stage tend to overreact at similar times, regardless of order amounts. The lessons are that lags in information and fulfillment cause problems, and inventory can help service

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Scarica in formato PDF, TXT o leggi online su Scribd
    Segnala contenuti inappropriati
    270 visualizzazioni7 pagine

    Beer Game

    Caricato da

    D Wahyu Bawono
    The document describes The Beer Game, which is designed to simulate supply chain dynamics. The game involves four players representing different stages in a supply chain - manufacturer, distributor, wholesaler, and retailer. Each player receives orders from the next stage and places orders with the previous stage. Players incur costs based on inventory and backlog levels. The game demonstrates that players overreact to changes in demand or orders, amplifying fluctuations down the supply chain. This can lead to stockouts or excess inventory as orders are eventually filled. Analyzing thousands of games shows players at each stage tend to overreact at similar times, regardless of order amounts. The lessons are that lags in information and fulfillment cause problems, and inventory can help service

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Scarica in formato PDF, TXT o leggi online su Scribd
    Segnala contenuti inappropriati
    di 7

    The Beer Game

    Paul Farris

    11/11/96

    The Beer Game


    Our Objectives are:
    to provide a valuable learning experience about supply chains to have fun.

    The game is not designed with any specific industry in mind. Rather, it is designed to elicit a certain behaviour that is characteristic of most supply chains.
    11/11/96

    Consumer Demand Consumer Purchase

    CONSUMERS

    Inventory

    RETAILER

    Order to Wholesaler

    The Supply Chain

    Shipment to Retailer

    Inventory WHOLESALER
    Shipment to Wholesaler

    Order to Distributor

    Inventory DISTRIBUTOR
    Shipment to Distributor

    Order to Manufacturer

    PRODUCTION

    Production Order

    Inventory
    MPS, Beergame.ppt

    MANUFACTURER
    Shipment from Production
    11/11/96

    The Beer Game - Rules


    Every Week:
    New shipments received from your supplier. New order received from your customer. Customer order is filled from inventory. Any balance goes into backlog. Cost is:
    $0.50 per case in ending inventory; $1.00 per case in backlog

    You place a new order with your supplier


    11/11/96

    The Beer Game - Rules


    Backlogs do not go away!! All orders must eventually be filled No communication with team-mates If you have played before... Lowest cumulative cost team is the winner.

    11/11/96

    What happened?

    Blame Blame Blame

    the computer my supplier my customer the consumer myself the system

    11/11/96

    What happened to Consumer Demand?


    Consumer Demand 8

    Week 4

    Time
    11/11/96

    The Beer Game - Observations


    One or more players cut orders in an attempt to reduce inventory Suppliers see a reduction in order size as a signal of declining demand and reduce their orders even more Meanwhile, retailers see a jump in consumer demand Retailers order extra in an attempt to fill the pipeline

    11/11/96

    The Beer Game - Observations


    Suppliers see higher orders as a signal of increasing demand just when their inventory is being reduced Backlogs develop and build ! In the face of growing backlogs, players grow impatient and increase their orders - forgetting that all previous orders will eventually be filled Backlog situations eventually turn into excess inventory situations as previous over-orders are filled
    11/11/96

    An analysis of thousands of games shows that though not all players order the same amounts, they all overreact at approximately the same time.

    It always happens !!
    11/11/96

    Reacting to Stockouts
    Event
    Stockouts Stockouts

    Analysis
    None Supplier has not filled my past orders Demand is erratic My orders are too erratic Delays in system cause these problems

    Action
    Increase my order Get a new supplier Try to smooth out demand Dampen my decision rules Change the system. Work to shorten lags

    Stockouts Stockouts

    Stockouts

    11/11/96

    Which cost more?


    Information

    Inventory

    Capacity
    11/11/96

    Beer Game Lessons


    Inventory cost money, but may help increase service levels Lags cause problems and longer supply chains cause problems Need information systems to monitor each stage in the chain Also, need cooperation in the channel Are partnerships the answer???
    11/11/96

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