Near Beer Game Simulation

It's called the Near Beer Game because, although it's not identical to the original beer game, it teaches many of the same lessons. It also teaches one extra lesson not in the original game: even with perfect information, even when there are no breakdowns in communication, you'll still feel the bullwhip effect due to procurement and manufacturing delays.

Here's how the Near Beer Game works: at the beginning of the simulation your supply chain is in perfect equilibrium. Customers are ordering ten cases of beer each week, you have ten cases in inventory, ten cases are brewing, and ten cases worth of raw materials are arriving from your vendors. In week two, demand increases to fifteen cases per week and remains at fifteen cases for the remainder of the simulation. The game ends when you manage to get your supply chain back in equilibrium for fifteen cases of beer.

Sounds easy right? Try it out and see how many weeks it takes you. See if you can bring the supply chain back into equilibrium without the bullwhip oscillations of stock-outs followed by over-supply.

Read the article Bullwhips and Beer: Why Supply Chain Management is so Difficult.

Topics covered
Supply Chain,
Inventory Management,
Bull Whip Effect

Audiences
Corporate training,
MBA programs,
Undergraduate business
(online or classroom)

Duration
30 to 90 minutes including introduction and debrief