The Beer Game

To understand the impact of decisions made in part of the beer game supply chain on the overall performance of the system, we conducted a simulation called a beer game. The supply chain consists of retailers who order wholesalers to order factories to wholesalers. At the beginning of each period, each stage of the chain is ordered upstream and the two orders shipped before the period (before the fourth period, unless backlog occurred at the next stage of upstream Orders) will be received. When inventory becomes available, all orders are finally promised.

The purpose of the beer game is to minimize the total cost of everyone in the supply chain by reducing inventory and managing all orders (http://supplychain.mit.edu/games/beer-game , 2011). However, I failed to create a game. The following is a summary of the events that occurred during the game. In the process of playing the game, we follow a zero strategy stating that "your personal inventory is upstream when zero inventory is higher than demand." This rule primarily determines the format of the game and affects the results of inventory and backorder. Retailers made a pretty good start in the game. In the fifth week when customer's demand increased, inventory increased by 12, inventory decreased. In the sixth week, retailers began accepting orders from customers because there was no shipment and whips did not work.

In the demonstration of "Beer Game" which was originally called "Production - Distribution Game", the manager accepts the influence of their decision on the behavior of the system. The game simulates a 50 week decision, and each player decides the number of beers to order. At the forefront there are four participants: retailers, wholesalers, distributors and factories. Players are able to order as many cases as needed (production is unlimited), customers are said to have different needs. The goal is to minimize beer inventory, but to sell as much as possible.

Problem (40 points) Demand for beer is P (Q) = 240 - Q at the state university (the problem is Q). Beer Belly and Nittany Beverage are double items on the market and compete in Cournot games. Suppose that Beer Belly performs better logistics management and first sets its quantity to q B. Nittany then responded by choosing qN. The total number is Q = qB + qN. Suppose the marginal cost of two beer boxes is $ 20. Question (35) Let's say Cafe Buzz and Ishmael's Cofee set the price of iced coffee and play the game. Each has two choices: high (H) or low (L). If they agree to "fix" the price (both will fulfill H), everyone gains $ 5 (thousands) profit. If one of them plays L and the other plays H, the low-priced company gets $ 10 (thousands) and the other gets $ 0. When they all play L, everyone gains 2 dollars (thousands) of profits