Beer Game

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Supply Chain Game:
Beer Game

Learn about ways to prevent the build-up of excess inventory at individual supply chain participants

Number of players
4 - 8
Duration
2 - 3 hours
Level of difficulty of running the game
Easy
Area
Logistics

About the game

Description

The bullwhip effect is a concept related to the supply chain. The term refers to demand distortions that intensify as one moves up the supply chain.

This effect explains fluctuations in sales (demand), production and supply, and its occurrence is mainly due to inefficient information flow in the supply chain. The Bullwhip Effect leads to the accumulation of excess inventory at individual partners.

Goal of the game

Find solutions to minimize the bullwhip effect by, among other things, introducing a suction system into the supply chain.

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Gameplay

The game consists of 2-3 rounds, during which participants will improve the supply chain based on logistics and financial indicators related to inventory volume, value of lost sales and financial performance for the entire chain.

The task of the participants is to implement safety mechanisms, based on real consumption, through which it will be possible to maintain a stable level of inventory with controlled deviations. In the course of standardizing the chain, on-time delivery to end customers will be restored.

Process

The game simulates the production and distribution of beer from the brewery through distributors, wholesalers and retailers to the end customer. Small changes in demand, along with the use of a push system in the execution of forecasts, result in uncontrolled inventory growth throughout the supply chain.

During the game, the causes of the bullwhip effect in the supply chain will be presented in a practical way, showing how unnecessary inventory moves down to each subsequent link in the supply chain as time passes.

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Lean tools in the game

Physical content of the game set

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