The Beer Distribution Game is an activity that is designed to teach the distribution-side dynamics of a

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The Beer Distribution Game is an activity that is designed to teach the distribution-side dynamics of a three-level or four level supply chain. In the four-level game, the activity needs to be completed in teams of four students, where each student is assigned to be either the brewery, distributor, wholesaler, or retailer. The game generates end-customer demand. The brewery makes and sells cases of beer to the distributor, who sells to the wholesaler, who sells to the retailer. Each student needs to make a decision with respect to the number of cases of beer he or she would like to order from the person above him/her in the supply chain. In the case of a brewery, the decision is how many cases of beer to produce. Once the order has been placed, the shipment will be delivered after a certain amount of game time (e.g., two weeks), if there is enough inventory in stock. If there is not enough inventory, then the order is filled as much as possible. The party that does not have enough on hand inventory will pay a backorder cost. Brewery orders will always be met. Finally, for every case of beer that is kept in inventory, there is an associated inventory holding cost. The objective is to end up with minimum total inventory holding and backorder cost. Visit http://www.beergame.org, learn more about the Beer Distribution Game, and set it up. Find three friends and play the game for a few rounds (e.g., 25 weeks) twice, first without sharing any information (except your order), and then with sharing end-customer demand and your inventory position with the person upstream. At the conclusion of the game, report what you have learned.

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Operations Management

ISBN: 9781259270154

6th Canadian Edition

Authors: William J Stevenson, Mehran Hojati, James Cao

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