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The Beer Game April 24

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1 Running Head: THE BEER GAME Supply Chain Management: The Beer Game Course Name Date 2 Running Head: THE BEER GAME Overview The Beer Distribution Game otherwise known as the Beer Game was developed by MIT in the 1960s to highlight key principles and challenges encountered in supply chain management. The game demonstrates the intricacies of distributing a case of beer through multiple supply chains; factory, distributor, supplier, and retailer. Each team is tasked with fulfilling incoming orders of one case of beer by passing the order to the next player (Navarre, 2012). The three main concepts learnt from The Beer Game are discussed below: i. Bullwhip or whiplash effect This is an infamous sign of lack of proper coordination in customary supply chains of various products and services. This phenomenon infers that demand variations augment as you move towards upper levels of a supply chain and this triggers fluctuations in inventory, cost increments, and reduces competiveness. These small variations can occur even in situations where consumer demand is fairly stable just like in the Beer Game. Consequently, the bullwhip effect triggers a myriad of problems such as poor custom ...
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