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Beer Game

Beer Game. UTD version. Supply Chain. F actory – D istributor – W arehouse – R etailer Upstream ----------------------------------------------- Downstream Everybody knows the demand distribution. Material flow. Information flow. 2day LT. 2day LT. 2day LT. 2day LT. F. D. W. R.

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Beer Game

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  1. Beer Game UTD version

  2. Supply Chain Factory – Distributor – Warehouse – Retailer Upstream ----------------------------------------------- Downstream Everybody knows the demand distribution. Material flow Information flow 2day LT 2day LT 2day LT 2day LT F D W R 2day LT 2day LT 2day LT

  3. SC Costs • Holding costs incurred at F, D, W, R: • $0.25 per keg per day at F • $0.50 per keg per day at D • $0.75 per keg per day at W • $1 per unit per day at R • Backordering costs incurred only at R: • $10 per unit per day at R • Minimize sum of these over 30 days

  4. Playing role and style • Play as R or W or D or F. • Play as a team • Without transferring demand information • Play the training version first, then the real version

  5. Demand distribution • Random demand discretized • Truncated • With mean 50 and standard deviation 20

  6. Order fulfillment • Observe the incoming shipment from the upstream partner, add this to the inventory. • Observe the incoming order from the downstream partner, take out this from the inventory. If the result is nonnegative hold the inventory, Otherwise backorder.

  7. Order of daily events at the Retailer(R) • Inform upstream partner of the size of order placed by you Info-LT days ago. In day 4, R informs W of R’s order in day 2. • Upstream partner informs you of the size of incoming shipment sent by the upstream partner Mater-LT days ago. In day 4, W informs R of the shipment made by W in day 2. Enter. • Observe the customer demand. • Order fulfillment. • Outstanding orders advance 1 day. • Decision: Order from W. Enter.

  8. Order of daily events at the Warehouse(W) • Downstream partner informs you of the size of the order it placed Info-LT days ago. W learns about what R ordered Info-LT days ago. In day 4, W receives R’s incoming order placed by R in day 2. Enter. • Inform upstream partner of the size of order placed by you Info-LT days ago. In day 4, W informs D of W’s order in day 2. • Upstream partner informs you of the size of incoming shipment sent by the upstream partner Mater-LT days ago. In day 4, D informs W of the shipment made by D in day 2. Enter. • Inform downstream partner about how many kegs it is receiving on this day. • Shipments advance 1 day. • Order fulfillment. • Outstanding orders advance 1 day. • Decision: Order from D. Enter.

  9. Order of daily events at the Distributor(D) • Downstream partner informs you of the size of the order it placed Info-LT days ago. D learns about what W ordered Info-LT days ago. In day 4, D receives W’s incoming order placed by W in day 2. Enter. • Inform upstream partner of the size of order placed by you Info-LT days ago. In day 4, D informs F of D’s order in day 2. • Upstream partner informs you of the size of incoming shipment sent by the upstream partner Mater-LT days ago. In day 4, F informs D of the shipment made by F in day 2. Enter. • Inform downstream partner about how many kegs it is receiving on this day. • Shipments advance 1 day. • Order fulfillment. • Outstanding orders advance 1 day. • Decision: Order from F. Enter.

  10. Order of daily events at the Factory(F) • Downstream partner informs you of the size of the order it placed Info-LT days ago. F learns about what D ordered Info-LT days ago. In day 4, F receives D’s incoming order placed by D in day 2. Enter. • Inform downstream partner about how many kegs it is receiving on this day. • Shipments advance 1 day. • Order fulfillment. • Factory brews scheduled production. • Decision: Schedule production to be received in 2 days. Enter.

  11. Reporting • After you finished playing the game, you can graph several performance measures, get a summary of your actions. Click on “Show History” for this. • Results can be saved to A drive by first clicking on “End Game” and then saying “Yes”. • You can copy results and paste into another file.

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