The Beer Game Simulation

Simulation Overview

The Beer Game is a competitive supply chain simulation that improves on the learning outcomes of the classic Beer Game developed at MIT. Decision-making in supply chains is notoriously difficult. Lack of visibility can cause increasingly variable orders, even in industries with relatively stable demand. Teams of four learners experience these challenges for themselves, then explore strategies to help minimize costs and improve communication across the supply chain.

The Story

In this multiplayer synchronous simulation, each team of learners is comprised of a manufacturer, distributor, wholesaler, and retailer. The teams compete against one another to manage their supply chains successfully, minimizing costs over 30 simulated weeks. The participants are measured against their counterparts on other teams.

Teams must cope with variable demand, lead times, modes of transport, inventory-carrying costs, stock-out costs, and incomplete information across the supply chain. Instructors determine whether or not members of each team are able to share information with each other regarding inventory on hand, incoming shipments, and demand so that the players may choose to work together to streamline their supply chain. In addition, instructors determine whether information-sharing comes with a cost.

Learning Focus

• Experience the bullwhip effect, where orders become increasingly volatile as they move upstream
• Understand the causes, consequences, and counterstrategies for the bullwhip effect
• Explore the challenges of inventory management in a dynamic environment with limited access to information
• Demonstrate that incorporating lead time flexibility into a supply chain can enhance a firm’s performance and flexibility

Topics Covered

• Bullwhip Effect
• Inventory Control
• Supply Chain Visibility

See it in Action

Each simulation comes with a Teaching Guidebook for the facilitator along with 1:1 facilitator training and free trials.

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This simulation is by Darden Business Publishing, Elliott Weiss, Gal Raz, Rebecca Goldberg and Forio