The classic beer game (BeerGame) is a business game created by John Sterman from MIT Sloan School of Management in the 1960s. Its purpose is to simulate the supply chain behavior with fluctuating demand. The game participants can send the orders to the suppliers, and have access only to their local information, unaware of the information on the other chain links. The game has several versions available, ranging from the original board game version to the online versions.
Supply Chain Management(SCM) is a chain of facilities and distribution alternatives that performs the functions of obtainment of products, transformation of these products into intermediate and finished goods, and the distribution of these finished goods to customers. The Supply Chain Management is a strategy to achieve the integration. (Ganeshan & Harrison, 2002)
The simulation proposes a demand variation during the simulation to analyze its effect later.
The access of the basic Beer Game version is available for free.
The OGG sell a board version to be used for MBA or executive training.
Throughout the decisions it is possible to observe the "bullwhip effect," that is, the demand distortion in the supply chain.
It is possible to draw economic and financial analyzes with the simulation results.
It can be played in just a few minutes and provides rich information for analysis.
You have the perfect information on consumer demand. You know for sure that demand will grow in the second week of the simulation to 50% due to the marketing investment. The demand will remain constant for the next weeks until the end of the year. Your goal is to return the supply chain to the equilibrium and keep stocks tight at all chain. To perform this task, you will have up to 50 weeks. This task can be harder than you think!
The OGG customized a free access version for individual use and quick application. A board game version is also available for use in executive training and classrooms.
It can be done in up to 60 minutes. This time includes decisions, discussion and results analysis.
The results from the basic version only show the number of weeks it took to reestablish the supply chain balance.
Not applicable in basic version.