What does the Beer Game teach?

In the 1960s, a group of researchers at the Massachusetts Institute of Technology developed an exercise to simulate supply chain dynamics using beer as an example. Versions of the “beer game” or “beer distribution game” are commonly used to teach supply chain principles and demonstrate the bullwhip effect.

How do you conduct a beer game?

The rules of the game are simple – in every round each player performs the following four steps:

1. Check deliveries. Check how many units of beer are being delivered to him from his supplier in the supply chain.
2. Check incoming orders.
3. Deliver beer.
4. Place outgoing order.

What is the objective of the Beer Game?

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.

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.

What can you do in the beer game?

The beergame is a role-play supply chain simulation that lets students experience typical supply chain problems. In the beergame students enact a four stage supply chain. The task is to produce and deliver units of beer: the factory produces and the other three stages deliver the beer units until it reaches the customer at the downstream end…

How does the supply chain work in the beergame?

In the beergame students enact a four stage supply chain. The task is to produce and deliver units of beer: the factory produces and the other three stages deliver the beer units until it reaches the customer at the downstream end of the chain.

Why was the beer game developed at MIT?

The beer game was developed at the MIT in the 1960s to simulate a simple production/distribution system for one brand of beer. This is a powerful way to illustrate and understand how elements in a complex system interact to create ripple effects or chain-link effects. We’ll explain The Beer Game in detail in this article.

What kind of game is the beer distribution game?

The beer distribution game (also known as the beer game) is a type of gamification that is used to experience typical coordination problems of a supply chain process.