The Beer Game is a simulation game created by a group of professors at MIT Sloan School of Management in early 1960s to demonstrate a number of key principles of supply chain management and to show how the patterns we create in our relations with the world around us sometimes give unexpected and undesired results.
The purpose of the game is to meet customer demand for cases of beer through a multi-stage supply chain with minimal expenditure on back orders and inventory.
During the game players experience the bullwhip effect, which is a phenomenon observed in distribution channels, where the role of communication and information is often underestimated.
- Discovery of main challenges related to supply chain management
- Development of systematic thinking
- Understanding of the role of communication and information in supply chains
Benefits for participants
Experiencing and understanding the mechanism of the bullwhip effect make the players discover key factors influencing productivity in production systems and distribution in their daily business practice. Analysis of this phenomenon leads to a better understanding of the need to improve supply chain management systems emphasizing chain cooperation, such as ECR (Efficient Consumer Response), CPFR (Collaborated Planning, Forecasting & Replenishment), etc.
Set includes of:
- Game Board
- Beer tokens
- Demand Forms
- Order Froms
- Cost Control Forms (1 for each: retailer, wholesaler, distributor and manufactiurer)
- Facilitator Guide