Supply Chain Management Simulation: The Root Beer Game
The beer game simulation is based on the classic game that was developed by Jay Forester in the 1960s (The Beer Game Portal, 2015). The game depicts a supply chain, with four sectors, that is the factory, distributor, wholesaler and the retailer. In the simulation that I played, I was assigned the role of a retailer. The system automated other functions of the supply chain. In my new position, I would be supplying beers to clients and every week I was supposed to restock my inventory of beer by ordering more beers up the chain. Every simulated week I reviewed incoming orders, my inventory stock, other orders history and backlog, and from the review I was able to determine my order of the …show more content…
From the beginning of the whole process of ordering the beer, it evident that there is no efficient communication. Orders are made based on the historical data that are bound to change, depending on different events. For instance, there might be a fluctuation of commodities prices or a promotion. This will affect the demand for those items, and due to lack of communication up the chain, the wholesale will end up placing the same order to the distributor. It will lead to a shortage of commodities supplied to the retailer. From the data collected, variation in the cost is highly evident. To curb this problem, I would advocate not only for regular communication between different entities of the supply chain but also to manage the hold transaction on a contract basis. The agreement will ensure that orders are delivered on a regular basis, and the prices of the commodity are regulated. Besides, I would advocate for an increment of backlog and inventory cost. The cost increase will ensure that the retailer carries out a thorough review, before placing an order. The measure will discourage retailers from overrating their orders since the return to the company will be a cost on their side (the bullwhip effect, …show more content…
Its ability to simulate their working environment enables them to feel like they are participating in a real-life event. This encourages more skills to be gained since it is cheap to run. Therefore, most professionals can afford to learn from it. It also minimizes the risks that could have been made in real life event in case of a poor decision. In our scenario, a lot can be learned by taking part in a root beer game. The game simulates real life situations that face most supply chain managers. Therefore, it provides a good base for helping managers improves on their skills. It also encourages one to participate more often since it engaging and above it all, free or affordable to play
The beer game simulation is based on the classic game that was developed by Jay Forester in the 1960s (The Beer Game Portal, 2015). The game depicts a supply chain, with four sectors, that is the factory, distributor, wholesaler and the retailer. In the simulation that I played, I was assigned the role of a retailer. The system automated other functions of the supply chain. In my new position, I would be supplying beers to clients and every week I was supposed to restock my inventory of beer by ordering more beers up the chain. Every simulated week I reviewed incoming orders, my inventory stock, other orders history and backlog, and from the review I was able to determine my order of the …show more content…
From the beginning of the whole process of ordering the beer, it evident that there is no efficient communication. Orders are made based on the historical data that are bound to change, depending on different events. For instance, there might be a fluctuation of commodities prices or a promotion. This will affect the demand for those items, and due to lack of communication up the chain, the wholesale will end up placing the same order to the distributor. It will lead to a shortage of commodities supplied to the retailer. From the data collected, variation in the cost is highly evident. To curb this problem, I would advocate not only for regular communication between different entities of the supply chain but also to manage the hold transaction on a contract basis. The agreement will ensure that orders are delivered on a regular basis, and the prices of the commodity are regulated. Besides, I would advocate for an increment of backlog and inventory cost. The cost increase will ensure that the retailer carries out a thorough review, before placing an order. The measure will discourage retailers from overrating their orders since the return to the company will be a cost on their side (the bullwhip effect, …show more content…
Its ability to simulate their working environment enables them to feel like they are participating in a real-life event. This encourages more skills to be gained since it is cheap to run. Therefore, most professionals can afford to learn from it. It also minimizes the risks that could have been made in real life event in case of a poor decision. In our scenario, a lot can be learned by taking part in a root beer game. The game simulates real life situations that face most supply chain managers. Therefore, it provides a good base for helping managers improves on their skills. It also encourages one to participate more often since it engaging and above it all, free or affordable to play