Supply Chain: The Beer Game

The MBA Beer Game is a simulation game that is often used in business schools to teach students about supply chain management and the importance of communication in the supply chain.

The game simulates the supply chain of a beer company, with players taking on the roles of different parts of the supply chain, such as the distributor, retailer, and factory.

The objective of the game is for players to work together to meet customer demand for beer while keeping inventory and costs as low as possible. However, due to poor communication and lack of coordination among the players, the game often results in higher inventory costs, stockouts, and other problems.

Through playing the game, students learn how poor communication can lead to inefficiencies and increased costs throughout the supply chain. They also learn how cooperation and coordination between different parts of the supply chain can lead to better performance.

In summary, the MBA Beer Game is a simulation game that teaches the importance of communication in supply chain management by showing the negative effects of poor communication and the positive effects of good communication.

Prof. Larry Navarre (Business) presented “Supply Chain Management: The Beer Game” during the Provost’s Distinguished Faculty Speaker Series. Event hosted by the Provost & CETL.  The Beer Game was created by MIT Professors in the 1960s.  There is a great deal of correlation between the Beer Game and the bullwhip effect.  If you want to get a better understanding of inventory these two supply chain concepts are definitely worth researching.

Inventory Management Training.

• ABC Analysis in Inventory Management.
• Avoiding Disruptions in Your Supply Chain.
• Bullwhip Effect: How Sudden Demand Increases Affect Supply Chains.
• Calculating Safety Stock: Protecting Against Stock Outs.
• End To End Supply Chain Management Process.
• How Amazon Receives Your Inventory.
• Importance of Inventory Control.
• Introduction to Lean Manufacturing. 
• Learn to Innovate Supply Chain in an Hour.
• SCM Collaboration on Social Media.
• Supply Chain Master: Professor Hau Lee on the bullwhip effect.
• Supply Chain Today 
• The Beer Game – Supply Chain Management.
• The Goal by Eliyahu M. Goldratt – A Book Review.
• Understanding and Optimizing Inventory in Supply Chains.
• Vendor Managed Inventory (VMI): Three Keys to Success.
• What is Demand Forecasting?
• What is Inventory Management?
• Worst Supply Chain Disruptions in Modern USA History.

Supply Chain Quotes

• “They’re measurements which express the goal of making money perfectly well, but which also permit you to develop operational rules for running your plant,” he says. “There are three of them. Their names are throughput, inventory and operational expense.”  ~ Eliyahu M. Goldratt
• “You won’t find it difficult to prove that battles, campaigns, and even wars have been won or lost primarily because of logistics.” ~ General Dwight. D. Eisenhower.
• “You gain strength, courage, and confidence by every experience in which you really stop to look fear in the face. You must do the thing which you think you cannot do.” ~ Eleanor Roosevelt
• “There’s no good idea that cannot be improved on.”  ~ Michael Eisner
• “Make inventory a common enemy for your company.” ~ Dave Waters
• “Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity.” ~ General George Patton
• “Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit home and think about it. Go out and get busy.” ~ Dale Carnegie
• “Ideas are like rabbits. You get a couple and learn how to handle them, and pretty soon you have a dozen.” ~ John Steinbeck

“Bad communication is kryptonite for supplychain.” ~EverythingSupplyChain.com

“Information is the oil of the 21st century, and analytics is the combustion engine.” ~Peter Sondergaard

“The most important thing in communication is hearing what isn’t being said.” ~Peter Drucker

“We do not remember days, we remember moments.”  ~ Cesare Pavese

“Make inventory a common enemy for your company.”