The Beer Game Supply Chain Management

1
The Beer GameSupply Chain Management

• BT 414
• Dr. Keating

2
SCM Starting Conditions
3
Beer Game Overview

• The objective of the exercise is to minimize
  total channel inventory and backlog costs.
• Retailer
• Wholesaler
• Distributor
• Factory

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Beer Game Costs (Cont.)

• During the exercise, your costs are calculated
  weekly.
• You will be charged
• 0.50 for each palette of beer that remains in
  your inventory at the end of the week, and
• 1.00 for each palette of beer that is backlogged
  at the end of the week
• In simple game no charge for inventory until
  arrives at downstream inventory after delay 2 and
  delay 1

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Beer Game Costs
6
Flow of Beer Pallets and Orders
Orders Yellow Post-Its
Pallets Pennies Or Red Post-Its
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Distributor Game Board
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Game Sheet For Each Team
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In-Class Assignment

• From your position at one of the 4 stages of the
  supply chain (retailer, wholesaler, distributor
  factory) estimate the mean demand by

10
Next Class Assignment

• From each team develop a power point presentation
  with following 4 charts for the next class
• Orders at stages of the supply chain by round
• Backorders at stages of supply chain
• Cumulative backorder and inventory costs by round
• Plots which show the total performance of the
  overall channel