November 26, 2019
The Beer Game, invented by Massachusetts Institute of
Technology, stimulated the supply chain and our operations Management class had
the opportunity to play it during one of their classes. The students were
divided from roles such as store owner, wholesaler, distributor and producer.
Every part of the supply chain ordered goods and had them delivered to its
customers. Other students recorded data regarding demand and inventory for
every round that was played. The goal of the game is to create optimal
inventory levels with high customer service ratings. The beer game’s results
illustrate how the Bullwhip effect in demand variations is created. This effect
always appears due to the uncertainty of demand in supply chain. Our students
had the great opportunity to better understand the importance of information sharing,
supply chain management and collaboration throughout the supply chain process
as well as what can happen when non-coordinated process where problems occur
because of poor information sharing.