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Beer Game (Supply Chain Analysis)

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Moni Moghrabi

on 18 September 2013

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Transcript of Beer Game (Supply Chain Analysis)

Creating Balance
Supply Chain - Data Analysis
The Beer Game
Simulation game used to demonstrate a number of key principles of Supply Chain Management
Beer Game Modes
Normal Lead Time VS Short Lead Time
Retailer Functions
* Place Orders
* Manage Stock
* Deliver goods to Consumer
NLT VS NLT w/ Information Sharing
Balancing Cost
Open Orders
Stock Level (Inventory)
Which supply is more competitive ?

- the shorter the lead time the better the performance
in terms of placing/predicting orders.
SC1 is performing better than SC2 in NLT and SLT
Why more competitive ?
SC1 572.5 390.5
SC2 1077 780.5 983.5
Ratio 94.9% 99.9%
of demand and supply
* Good coordination
Everyday low pricing
Low cost of managing inventory
Lowered risk of
high-level stock
Cannot prevent the risk of
back orders
Risk of cooperating with
unreliable vendors
* Prediction and proper forecast
The cost during phase3 increased significantly due to these two challenges
Both Retailer 1&2 failed to balance the inventory at the beginning which caused stock shortage later
The customer demand during phase 3 is very unstable
The bullwhip effect is obvious throughout both supply chain 1&2
--> sharing information can improve communication and coordination (result: optimized order and stock levels)

In beer game -->
both SC couldn't benefit that much from sharing information because we failed to use this service.
Full transcript