beer game
The challenge:
In the Beer Game, also known as the “Beer Game”, participants are divided into teams that manage, each one, a different link in a supply chain composed of Retail, Resale, Distributor and Factory. Each team is responsible for receiving the cargo, meeting the demand, placing new orders with the supplier and controlling the stock levels of its link.
The competition takes place between chains and the one with the lowest total cost in customer service wins! Participants should therefore guide their management policies considering the inventory costs associated with serving this customer.
people already played
applications made
Skills developed:
… will have a systemic view of the supply chain, perceiving the interdependence between the links that compose it.
… will have experienced the challenges of integrated planning and the advantages of collaboration between companies that make up the same supply chain.
… will acquire a new perception of the costs involved in managing inventories and the level of customer service as guiding the company's strategy.
… will experience difficulties in coordinating demand with the organization's resources available for customer service.
Concepts Covered:
- Supply Chain Management
- Inventory Management
- Bullwhip effect
- demand planning
- Integrated Planning
- Collaborative Planning
The experience
The dynamics of the Beer Game, in general, occurs in two complementary face-to-face stages: “Game Without Information” and “Game With Information”. In both stages, participants use smartphones connected to the network to place orders with their direct suppliers within the supply chain, making the game more dynamic!
game without information
2 hours duration
Participants manage their companies without communicating their strategies and policies to other links in the supply chain. The objective is to simulate the traditional relationship model in which each company has a limited view of the chain and seeks to maximize its own results in a non-collaborative relationship.
The final results are analyzed by an ILOS professional who, with the support of graphs and calculations in real time, discusses the results achieved with the participants, stimulating the exchange of perceptions on the difficulties of supply chain management.
game with information
4 hours duration
After analyzing the results, the teams put together a strategy with an integrated view of planning. The relationship between the links is collaborative and the objective is to maximize the overall results of the chain and not a specific link.
The results obtained in this round are analyzed and compared with those of the previous round, allowing those involved to perceive the advantages arising from integrated planning.
The duration of the game can be adapted to the needs and availability of those involved. The dynamics of the game can be constituted by only one of the stages (“Game Without Information”) or, by the two stages that can occur in uncoupled moments of the event.
Each stage lasts an average of 2 hours, totaling 4 hours of gameplay.
BRUNO PIVATO
It is important to show teams that are not directly linked to demand planning the importance of communication, customer knowledge and demand forecasting. In a playful and dynamic way, the Beer Game sent a very positive message to the sales team that they are key in the planning process and that they should always have a communication channel with the planning areas. We were very satisfied with the result.
ANA LUCIA MURATO
The game is very didactic and interactive! In addition to the excellent material used, the knowledge acquired is very relevant and close to the reality of organizations.
