Académique Documents
Professionnel Documents
Culture Documents
Information Flows
Cash Flows
Retailer
Beer Orders Beer Cases
o Systems Elements
o Interactions
o Interfaces
o Environment
o Functions
o Processes
o Functional Architecture
o Physical Architecture
Situation of Beer Game
Demand Forecast
o Beer is a seasonal and demand rises in the hot season and peaks around
holidays
o Recent demand has been steady at 4 beer cases per week
o Sales are expected to rise with temperature, public holidays, and a sales
promotion
Performance Goal
o As beer cannot be kept for long periods, the goal is to fulfill customer
demand and to minimize costs
o $0.50 inventory holding cost per case per week
(when you have extra beer you cannot sell)
o $1.00 backorder cost per case per week
(if you do not have enough beer to deliver)
Game Moves
Basic Game Rules
o Total 40 weeks
o Each complete round is 1 week
Movements
o Orders (with post it pads)
You receive orders and place your orders top row
o Beer cases are plastic chips
You take your delivery and ship your delivery bottom row
o Put your inventory, shipment, and delivery in their respective containers
Record Keeping
o For each week remember to write down incoming delivery, incoming order, your order (in
white columns)
o Always update your inventory calculation and costs
Terminology
o Shipping is OUT from Inventory to Outside
o Delivery is IN from Outside to Inside
Step by Step
ANIMATED WALK THROUGH
Flowchart of
Game
Movements
Five Commands in Three Stages
2 Orders In
3 Prepare Shipment Internal Management
4 Check Inventory
To Raw
Customers Materials
To Raw
Customers Materials
4
Customer
Orders 4
Orders
Placed 4
Incoming
Orders 4
Orders
Placed 4
Incoming
Orders 4
Orders
Placed 4
Incoming
Orders 4
Orders
Placed
Production
Delay
A
Customer
Orders
Orders
Placed B
Incoming
Orders
Orders
Placed C
Incoming
Orders
Orders
Placed D
Incoming
Orders
Orders
Placed
Production
Delay
? ? ? ?
Current Current Current Current
Inventory Inventory Inventory Inventory
To Raw
Customers Materials
Brewery
Incoming Incoming Incoming Orders Production
Brews
Customer Orders Orders Orders
Orders Placed Orders Placed Orders Placed Orders Placed Delay
Customer
Orders A
Orders
Placed
Incoming
Orders B
Orders
Placed
Incoming
Orders C
Orders
Placed
Incoming
Orders D
Orders
Placed
Production
Delay
Calculate Costs
Holding Costs of Excess Inventory $0.50 per case
Backorder Costs of Out of Stock $1.00 per case
Note: Unfilled Backorders have to be cleared first before there is excess Inventory
Homework - Data Analysis
1. Use beer game raw data of your group and copy these onto the first worksheet in “Data
Analysis Excel File”
2. Analyze the following from the Output in the rest of worksheets
o Plot the orders for every supply chain role in one graph
(x-axis: weeks, y-axis: orders, all four roles in one graph)