Beer Game Analysis

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Register to read the introduction… This will be called the interactive role. The computer takes the remaining roles. On the game display, the interactive role is displayed in colour, and the remaining roles are displayed in gray. Also, the information for the interactive roles is displayed but the information for other roles is hidden (with the exception of backorder at the supply chain member immediately upstream from the interactive supply chain member). In the example screen displayed above, the distributor is the interactive role. Also, by downstream, we mean the direction of the supply chain leading to the external demand, and by upstream, we mean in the direction of the factory. In addition, we refer to components of the supply chain as …show more content…
Recall (you can see this from the previous screen shot, on page 2) that the initial inventory was 4, and both Delay 1 and Delay 2 contained 4 units. This holds true for each of the supply chain facilities. Now, steps one and two have been completed. As you can see from the Order Entry dialog box, there is initially no backorder and no order from the Wholesaler. Since the starting inventory was 8 (the initial 4 plus 4 from Delay 1), 8 remain in inventory. Delay 2 is now empty. This is the first round, so there are no previous orders from the Distributor to the Factory, so the recent order box read 0. However, it this was a later round, and there was a order placed by the Distributor to the Factory in the previous round, it would appear in the recent order …show more content…
Note that the backorder box (indicated by an arrow in the figure above) on the right side of the screen indicates the current level of backorder, while this dialog box shows the level of backorder at the beginning of this round, before the player (in this case, the Distributor) attempted to fill downstream orders (in this case, from the Wholesaler). At this point, enter a demand amount. This can be zero, or any other integer. Remember that you are trying to balance inventory holding costs and shortage costs. Also, by looking at the backorder box at your supplier (in this example, the Factory), you can see how much backorder your upstream supplier already has to fill. That is, how many items you have ordered in prior rounds but have not yet received. Once an amount has been entered, the remaining upstream supply chain members play automatically, and the screen is updated. If you enter an order of 3 for the Distributor, the remainder of Week 1 play is carried out, and the Distributor portion of the screen looks

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