The Beer Game

In most aspects of life, beer games often fail, not success. And we will learn the most disappointing lessons. With this approach in mind, beer games function as the opposite of the functioning supply chain. In other words, this exercise shows you how to manage logistics operations. Hopefully it will help you understand how to properly manage your supply chain by checking worst case traps and shortcomings and avoiding the same type of errors.

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 (there are no restrictions on production), customers are said to have different needs. The goal is to minimize beer inventory, but to sell as much as possible.