Preview

Report on Beer Game Logistics Challenges

Powerful Essays
Open Document
Open Document
2220 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Report on Beer Game Logistics Challenges
REPORT ON BEER GAME ABOUT LOGISTICS CHALLENGES
1.0 INTRODUCTION

The Product Distribution or "Beer Game" is an experiential exercise designed to help decision makers recognize the value of adopt a holistic and self-motivated approach to problem solving. The game was has been played by 4 of us which is retailer, wholesaler, distributor and factory. The procedure of the beer game involves dividing the players into teams of four who will run a beer industry. We assume the roles of beer retailer, beer wholesaler, beer distributor, and beer factory. Through pick lots style, Shanthini was playing as a retailer, Vingdeswaran was the wholesaler, distributor task was played by Ranjini and the factory belonged to Rebekah. After the duration of 25 weeks in the game, we have finally completed with total cost of 3552.. During each round of the game, each of us should construct one and only one choice: how many cases of beer to order from the upstream dealer. The retailer orders beer from the wholesaler, the wholesaler from the distributor, and the distributor from the factory. The factory decide how much to manufacture, rather than how much to order from a supplier. During the game, communication between us is limited. Inventory and backorder levels usually differ drastically from week to week.
Our objective is slightly simple, each of the us has to meet the terms inward bound orders of beer by placing orders with the next upstream party. Order processing and filling delays are incorporated into the game to represent order processing, transportation, and manufacturing lead times.

The following represents the outcome of a distinctive beer game.

2.0 CHALLENGES OF THE GAME
The bullwhip effect is an observed phenomenon in forecast-driven distribution channels. Since the oscillating demand magnification upstream a supply chain reminds someone of a cracking whip it became famous as the Bullwhip Effect. (Bullwhip effect, 2005). Bullwhip problem occur in this game.

You May Also Find These Documents Helpful

  • Powerful Essays

    Greaves Brewery

    • 1117 Words
    • 5 Pages

    Greaves Brewery is a growing beer operation based out of Trinidad. The purchasing manager for the brewery finds himself struggling in finding a balance between ordering enough bottles to support sales; yet minimizing over ordering to avoid issues associated with growth decelerating trend from an off year, continued impact from government excise tax, tourism, and growth of exports particularly the USA.…

    • 1117 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Mcauslan Brewing Co. Case

    • 681 Words
    • 3 Pages

    3) PROBLEM: The company markets its product in Vermont, New York and New Jersey areas. However this isn’t very successful as the export sales is only 1% of the total sales. Peter’s goal is to increase this number to 10% in the future. SOLUTION: First of all, they should do a market research to try to find out which part of the country (Canada and/or USA) would be appropriate or successful to market its beers. It is possible that there is too much competition in Vermont and NY/NJ areas or there is a very low demand.…

    • 681 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    marketing plan

    • 4590 Words
    • 19 Pages

    The target market will carefully be selected based upon the size of the target group and the expected profitability. The costs of promoting Beyond the Bean have to fit the promotion budget of $6.000 which is a relatively small budget, so the promotion plan will mostly be based on the costs of the promotion tools. Moreover, the partners have two possible pricing scenario’s to decide from, the product pricing will again be based upon profitability. The final product offering can differ from also serving alcoholic beverages in the café or only non-alcoholic beverages. The final product offering will be based on suitability, convenience and…

    • 4590 Words
    • 19 Pages
    Powerful Essays
  • Powerful Essays

    Mountain Man Brewing Company

    • 4418 Words
    • 18 Pages

    |NUS | |MKT4415B | |Mountain Man Brewing Company: Bringing the Brand to Light | | | |Nur Azlyn bte Mohd Khalid | |2-Nov-2011 | |Prepared for: Dr Chng Peng Sim | |Examining the issue of product development and its cost-benefit analysis | Table of Contents 1. INTRODUCTION 3 1.1 Defining the Problem …… ……. 3 1.2 The Beer Industry – East Central Region 4 2.…

    • 4418 Words
    • 18 Pages
    Powerful Essays
  • Powerful Essays

    Systems Theory defines a scientific cross-discipline method for analysing the mechanisms of how complex systems operate and for understanding the behaviour they exhibit.…

    • 3866 Words
    • 17 Pages
    Powerful Essays
  • Powerful Essays

    The Boston Beer Company

    • 4185 Words
    • 17 Pages

    Overview The Boston Beer Company has had amazing success in its transition from a small scale microbrewer to a large scale national brewery. Almost all of the company’s success is due to the Samuel Adams Lager product line, which has hardly changed from the founding of the company in 1984, to the IPO in 1995, to the present day. In fact, much of the appeal of Samuel Adams comes from its microbrew image and the founder, Jim Koch’s, commitment to the brewing process and a premium beer. In recent years, however, the company has implemented a new strategy for growth which has included introducing a light beer that will have more mainstream appeal. While this has increased profits for the company, it has also left the company vulnerable to entry by diluting its brand name. For this reason, the company’s strategy for the immediate future has to make a significant shift, from a strategy of growth to a strategy of protection. It must focus on maintaining its current profits by preventing entry both from small breweries looking to copy the BBC’s strategy and from large breweries looking to use their expansive resources to steal some of BBC’s market share.…

    • 4185 Words
    • 17 Pages
    Powerful Essays
  • Best Essays

    The following is an analysis of the case, Greaves Brewery: Bottle Replenishment. It details the growing beer operation of Greaves Brewery located in the Caribbean island of Trinidad. The purchasing manager for the company, Alex Benson, is uncertain about how many bottles to order from the company’s German glass supplier. His decision is complicated by the possibility of a new bottle design being introduced that would compromise his existing inventory of bottles. Additionally, he is faced with storage limitations and erratic sales, all of which are impacting his decision. He is also concerned about over ordering to avoid issues from an off year, impact from government tax, tourism, and growth of exports.…

    • 1457 Words
    • 6 Pages
    Best Essays
  • Better Essays

    The company’s success also derived from strategy of Oleg Pinchuk, a former major Ukrainian beer producer. He aggressively had policy on giving credits to distributors. On a small budget, he had organized five distributorships, taken the company to 211 customer account (from 0), and set up warehousing arrangement. These policies were a key of achievement. Oleg Pinchuk’s strategies focused on getting people into distribution pipeline to serve customer needs whenever they want it. Although there was nonexistent for beer-distribution pipeline, the company set them up to be our…

    • 2705 Words
    • 11 Pages
    Better Essays
  • Good Essays

    simulation

    • 813 Words
    • 3 Pages

    1. The inventory and backorders increased for every participant in the supply chain except for the backorder of the retailer in coordinated modes. The retailer had an average backorder of 22.31 throughout the uncoordinated mode and 22 in the coordinated mode. The underlying reason for the problem associated with uncoordinated decision-making is essentially the lack of communication between different participants and the demand uncertainty that existed throughout the game. Moreover, misperception of feedback and time delays within the uncoordinated mode, caused the limited quality in decision making. Furthermore, one may identify perceived risk of individual players' bounded rationality as one of the underlying reasons that had impact on the buildup of backorders. In addition to this, a prevalent issue throughout the first 18 weeks was panic ordering reactions after unmet demand, which consequently contributed to the high inventory cost, ergo the bullwhip effect.…

    • 813 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Corona Beer (Modelo)

    • 1476 Words
    • 6 Pages

    The trend towards premium beer consumption has slowed somewhat in the recent economic downturn. However, down-trading is limited and there are notable instances of consumers continuing to trade up, both into beer and, within the category, into premium products. The beer industry has also seen a trend towards consumers trading up to attractive, local, premium and more expensive beers. Since 1997 Corona has become the number one imported beer in the US, substituting Heineken who had held the number one spot in the beer industry since 1933. (Thompson, Strickland, & Gamble, 2010)…

    • 1476 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Beer Game Paper

    • 502 Words
    • 2 Pages

    The factory have to decide how much they order; the order size is communicated only to the supplier and not to other entities. Furthermore, ordering information is transferred with delays and the lead-time in operations also results in delays.…

    • 502 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Beer Industry Oligopoly

    • 1981 Words
    • 8 Pages

    The brewing industry was once held to competition among many breweries in small geographic areas. That was almost a century ago. The U.S. brewing industry today is characterized by the dominance of three brewers, which I will talk about in this paper. There are many factors today that make the beer industry an oligopoly. Such factors include various advancements in technology (packaging, shipping and production), takeovers and mergers, economies of scale, barriers to entry, high concentration, and many other factors that I will cover in this paper. Over the course of the paper I will try to define an oligopoly, give a brief history of the brewing industry, and finally to show how the brewing industry today is an oligopoly.…

    • 1981 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Hints: Deliberate your inventory control. Where do your supplies come from and what is your turnaround time to produce your beverage once you have received an order?…

    • 1360 Words
    • 4 Pages
    Good Essays
  • Better Essays

    |Grupo Modelo is positioned strongly in this industry because of it 's large share of the US Market, however, it 's vulnerable to the larger, |…

    • 1911 Words
    • 8 Pages
    Better Essays
  • Good Essays

    Tiger Beer Market Plan

    • 7724 Words
    • 31 Pages

    Asia Pacific Breweries (APB) is the leading beer brewery in the Asia Pacific region. The company’s most iconic product, Tiger Beer, is notably one of Singapore’s most successful brands in the world and is valued at S$820 million.…

    • 7724 Words
    • 31 Pages
    Good Essays