1 / 12

Chapter 7: Supplement

The Beer Game illustrates the complexities of supply chain management across four stages: Factory, Wholesaler, Distributor, and Retailer. Each stage must carefully manage inventory and place orders with upstream suppliers, facing delays in communication and production. The objective is to minimize total weekly costs, which include inventory costs at $0.50 per keg and backlog costs at $1.00 per keg. The game is played under specific initial conditions, with steady retail demand and considerations for weather and promotions. Players take turns managing each stage simultaneously to optimize performance.

khan
Télécharger la présentation

Chapter 7: Supplement

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 7: Supplement The Beer Game

  2. The Beer Game Board and Initial Condition Figure 7A.1

  3. The Beer Game • Supply chain consists of four stages • Factory • Wholesaler • Distributor • Retailer • Each stage is required to manage its inventory level through the placement of orders with its upstream supplier

  4. Rules • There is a two-week delay between the retailer, wholesaler, and distributor • Production orders at the factory are available to ship three weeks after the production request • Objective is to minimize the sum of your total weekly costs • Only upstream communication are orders

  5. Costs • Weekly costs have two components • Inventory cost • Backlog cost • Weekly inventory cost is $0.50/keg of beer in inventory at end of week • Backlog cost is $1.00/keg on backlog at the end of the week

  6. Initial Conditions • Demand at the retailer stage have been stable at four kegs per week • Every order in supply chain has been four kegs • Each stage has maintained an inventory of 12 kegs • Warmer weather is expected to raise demand • Upcoming promotions are also expected to raise demand

  7. Playing the Game • Will be assigned to one of the four stages • During play, will perform the five steps shown on the following slides • Must be completed in order shown • Each stage of supply chain must complete the tasks simultaneously • Only the final task requires a decision

  8. Step 1

  9. Step 2

  10. Step 3

  11. Top of Data Sheet Figure 7SA.2

  12. Steps 4–6

More Related