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Parikshit Charan
The purpose of playing this game is to provide the participant with hands on experience on the
challenges in managing supply chains. The beer distribution game (or simply known as “the Beer
Game”) is a role-playing game, which simulate chaos, complexities, and structural problems in
the supply chains. Of course, there is no beer in the beer game, and the game does not promote
drinking.
There are two versions of supply chain (SC), with 10 students in each version of
SC.
In each SC, there are four positions (teams): retailers, wholesaler, distributor, and
factory.
Each receives orders from and ships beer to the sector downstream.
There are shipping delays moving downstream and order delays moving
upstream.
Decision period: decisions are made at each position at the beginning of each
week.
2. Basic rules
Objective: The objective is to minimize total costs for your team. The team with
the lowest cost wins the game.
Course Coordinator - Dr. Parikshit Charan
The cost at each position for each week will be added up for the total length of the
game to determine the total cost (please see the game worksheet on the last page).
No communication between position: The retailer should not talk to anyone else,
same for the wholesales, the distributor, and the factory. The only communication
between positions should be through the passing of orders and receiving of beer.
The retailer is the only one who knows the customers actually order. They should
NOT reveal this information to anyone else, until after the post-game discussion.
Course Coordinator - Dr. Parikshit Charan
Fill orders + backorders if any (i.e. satisfy demand as much as you can).
4. Tips
Some critical factors in the management of such systems are demand patterns,
information lags represented by delays, and the degree of (or lack of information
exchange among the players. Again, players are not permitted to exchange information
for this game. The only prerequisite, besides your counting skills, is that none of the
players have played the game before, or else agree not to reveal the details of the game.
Again, I strongly urge you to carefully study this game instruction in advance and
familiarize yourself with the game prior to playing.
5. Post-game Assignment
The success of this experiment is in your hands as it requires your active participation.
You (or your team) will NOT be graded or judged by any performance measures (e.g.
total cost), even though total cost minimization is your ultimate goal as you play the
game.
Short presentation (four teams will be selected) of what you have found using excel
charts (overhead transparencies) of the following over the whole game period:
Order quantity per period (orders you placed at end of each period)
Course Coordinator - Dr. Parikshit Charan
Turn in a written discussion (one paper per team) of your results/ observations/
frustrations/ suggestions for your performance improvement from the Beer game (max.
2 page). Specifically, include the following in your discussion.
Did you use any ordering policy? If yes, what was your ordering policy?
If you have experienced dramatic fluctuation in your demand/orders, what was the
reason? Could those fluctuations be mitigated? How?
For stations other than the retailer: What do you think th final demand
(observed by the retailer) looked like?
Supply Chain___
Course Coordinator - Dr. Parikshit Charan
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Course Coordinator - Dr. Parikshit Charan
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