Simulation game (Beer Distribution Game) to understand the actions of simple and widely use of this system in the Supply Chain Management (SCM). The Beer Game was developed in the 1960s at the Massachusetts Institute of Technology’s (MIT) Sloan School of Management (Sterman‚1989; Senge‚1992)‚ it has been successful to attract the attention of SCM practitioners and academics. The layout of the Beer Distribution Game (BDG) is illustrated in figure 1 below. Figure 1 Beer Distribution Game Layout
Premium Supply chain management
goods to users other than end consumers. Wholesaling involves selling merchandise to retailers‚ wholesalers and merchants‚ or to industrial‚ commercial and institutional users. A wholesaler can act as a middleman‚ brokering deals between these businesses. Wholesaling often occurs when large quantities of merchandise are reassembled‚ sorted‚ then repackage‚ and distribute in smaller lots. Wholesaler Buying goods in large quantities from the manufacturer and selling them in small quantities
Premium Marketing Retailing Sales
Beer Game Assignment 1. The benefits of communication in a Supply Chain are variable and depend on many factors other than enhanced clarity and efficiency. Benefits not only come from effective communication but from coordination and the decisions derived from useful information. Every node in a supply chain network has a significant influence over the decisions made by others pertaining to real demand. These decisions‚ in turn‚ affect the entire supply chain and distort the information as it travels
Premium Supply chain management
The Nature of Distribution Channels Most businesses use third parties or intermediaries to bring their products to market. They try to forge a "distribution channel" which can be defined as "all the organisations through which a product must pass between its point of production and consumption" Why does a business give the job of selling its products to intermediaries? After all‚ using intermediaries means giving up some control over how products are sold and who they are sold to. The answer
Premium Marketing
levels (/retailer/OEM/warehouse/factory)? Students‚ playing the Beer Game for the first time‚ are typically enthusiastic about feeling the effects of insufficient coordination so drastically. • within levels (logistics/planner) in the supply chain? Different players who all know the demand distribution‚ manage the different stages of the channel. The interface was designed to help us visualize the material and information flows. The game shows effects of missing information exchange and of delays
Premium Communication Supply chain Customer
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‚
Premium Supply chain management Logistics Inventory
Supply Chain Paper Operations Management Root Beer‚ Inc In the first round of the root beer supply chain game there was a lot of confusion‚ mystery‚ and chaos; and the data showed that (Please see separate excel spreadsheet of data with mean‚ standard deviation‚ and variation calculated). Analysis of the data shows a classic bullwhip effect; the customer places an order and order fluctuations build up through the supply chain. You can also see that these effects are magnified as you get farther
Premium Supply chain management Supply chain Inventory
Team PCG2 Jack Zhang Lai Wen Jun Gerald Chee Wong Yun Jie Overview Each player was assigned a role of either a retailer‚ wholesaler‚ distributor or manufacturer for beers. The main obstacle we faced was the uncertainty in forecasting demands‚ which was due to a long lead time (3 weeks from manufacturer to retailer). Objectives Focusing to tackle the problem of demand forecast updating‚ our group sought to keep accumulated costs low which is contributed by holding and backlog costs. Meanwhile
Premium Supply chain management Inventory Stage
Costco wholesaler is a membership warehouse‚ which was founded in 1983 by Jim Sinegal and Jeffery Brotman in Seattle Washington. (Thompson Jr. 2009) They are still located in Washington‚ but their headquarters are now located in Issaquah. Since 1983 Costco has grown to have 725 retail stores worldwide and 506 of them are within the Unites States of America alone. These stores employ up to 200 000 employees and on average are paid $20.98 dollars compared to other stores such as Walmart who pay their
Premium Marketing Wal-Mart Retailing
BEER GAME DEBRIEFING The bullwhip effect 28/09/2011 Tiphaine Ribetto – st Perrine Trullemans – st112855 Background: "Beer Game" is a simple simulation of a Make-to-Stock Supply chain. The goal of this game is to minimize cost of capital employed in stock while avoiding out-of-stock situations. The issue here is how to forecast demand accurately. Tiphaine and I assume the roles of beer factory in the production department. As our work does not involve any decision in the order flow
Premium