Beer distribution game

The Beer Game or the " MIT Beer Distribution Game" is a role-playing game in which occupy different positions in a distribution chain stakeholders. Aim is to keep costs as low as possible of the total chain. Since the individual parties have their information may not completely replace, but only communicate with each other quantities, attention is usually focused only on their own situation. The result is that the system very quickly escalates, as it is known in the whiplash effect ( bullwhip effect).

Developed the beer game in 1960 at the Massachusetts Institute of Technology (MIT) of the System Dynamics Group, headed by Jay Forrester. Students should use the game theory, the dynamics of a supply chain are illustrated on a very simple game. To a wider audience the game was by the book " The Fifth Discipline " by Peter Senge known where a detailed description of a normal game play is to be found. Meanwhile, the Beer Game has become a classic in management education.

Description and Rules

  • A game manager as a customer
  • Players: 4 parties (retailers, wholesalers, distribution center, brewery)
  • Commodity: beer crates
  • Storage costs: 0.5 money units (FU ) per week and crate
  • Cost of delay in delivery: 1 GE per week and crate
  • Initial inventory: 12 boxes per party
  • A game consists of 52 rounds ( 52 weeks)
  • Total time: 2 - 3 games ( 2-4 hours)
  • The different stages may only order and delivery quantities communicate with each other

In order to describe the flow of goods, coins or tokens in the appropriate amount to be used. But there are also lists for use.

  • List 1 with the columns: Week, beginning of period, receiving, delivery, end of period
  • Schedule 2 to the columns: Week, ordering, delivery, delay

List 1 shows the inventory management is in the appropriate trade level and remains at this. List 2 is used for communication between the levels of trade. They circulated back between levels of trade always by the purchaser to the supplier and again and is labeled with the corresponding values ​​.

Expiration

The first order is made. Anyone ordered from his supplier 4 crates of beer and receive them. After the orders are issued concealed. The game master ( client ) will continue to check it regularly 4 boxes. If he notices that have settled into the game, the parties, it increases its demand on 8 boxes and keeps it until the end (52 weeks) at. Despite this one-time change in the demand varies at the different levels considerably. At the end of the total costs are calculated. In the second and third game, some rules are changed. So everyone can share their ability to deliver, one level of trade is removed or lightning deliveries between brewery and retail are allowed.

Assessment

The beer game impresses with its simplicity and transparency. Despite simple rules, it falls heavily themselves experienced logisticians, to prevent swaying. The learning effect as well as the curiosity and readiness for change thus produced are considerable. The beer game is often used for this reason at the start of change management projects. The disadvantage is the impact of simplicity on the generality and accuracy. The educational goals and the applicability to their own company must therefore be clarified in advance exactly.

Can be Filed the game in the areas of logistics, supply chain management, process management and business reengineering.

Knowledge

The system structure, the system determines behavior. Problems are not due primarily to external factors. Dynamic systems create their own problems.

The structure of social systems shows that the focus is on their own decisions. There are also extremely rare analysis of the operation of own behavior on others. Through a cooperative mindset there would be significant improvements.

Derived versions

  • Beer game auction
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