How do you solve 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.
What does the Beer Game teach you?
The Beer Game goes well beyond introducing the supply chain — it fosters teamwork, adds new tools and allows more effective analysis throughout an operation.
Is the Beer Game a push or pull supply chain?
The Beer Game was developed to allow students to understand the effects of order variations on, and the ability to forecast demand within, a commercial supply chain. There is a propensity for it to occur more often in Pull logistics, the mode closest aligned to the commercial philosophy of the Beer Game.
What is the objective 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.
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.
Who invented beer game?
Jay Forrester
Jay Forrester, Professor Emeritus of Management at MIT, developed The Beer Game in the 1960s as a simple simulation of the complexities of industry.
What is the root beer game?
The root beer distribution game (also known as the root beer game) is an experiential learning business simulation game created by a group of professors at MIT Sloan School of Management in early 1960s to demonstrate a number of key principles of supply chain management.
What is the beer game simulation?
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. It reflects a role-play simulation where several participants play with each other.