4 ms·

I think they teach this game at most business schools, and it seems to be a popular and eye-opening experience. If you hit wikipedia, there are a number of lin

I think they teach this game at most business schools, and it seems to be a popular and eye-opening experience. If you hit wikipedia, there are a number of links to online versions you can play (some for free, some not). http://en.wikipedia.org/wiki/Beer_distribution_game http://en.wikipedia.org/wiki/Beer_distribution_game

A_A 15y ago
That's right. the Beer game is one of the first things taught in Operations Management in most b-schools, as an example of Supply Chain Management. [I was fortunate to have been introduced to the subject by John Sterman] In general, delays (i.e. lead times) and variations in orders will do that Beer game effect to any supply chain, no matter where it's located. Apple products are "made in china" because of various reasons -- comparative advantage, business cluster etc. I'd highly recommend a good reading of systems dynamics (and business dynamics) for those looking for more info. For those interested, two recommended books: * "Clock Speed" by Charles Fine (MIT) * "Business Dynamics" by John Sterman (also of MIT, and a great professor): http://goo.gl/K4OG http://goo.gl/K4OG (Amazon.com link)
kreilly 15y ago
Yes, I did this in business school. We called it the "Bull Whip Effect" because a small movement on one end of the supply chain caused a dramatic impact on the other end.
Splines 15y ago
This would make an interesting RTS. 2 teams, 4 players on each side. Each economy can survive on their own, but there is a natural chain that can be built to allow one player on each side to have an overwhelming advantage over the other team (think "tip of the spear"). Only by carefully coordinating resources can you get this to work - the same costs in the beer game apply here (making too much of the upstream resource (inventory) has an opportunity cost in you not being able to produce your own units, and not making enough of the upstream resource (backlog) results in poor teamwork and and having the other team eventually out-pace you. Co-op RTS games sometimes have resource sharing, but I don't think I've ever seen one with a legitimate supply chain (maybe because it ends up being so difficult to coordinate).

A_A 15y ago

That's right. the Beer game is one of the first things taught in Operations Management in most b-schools, as an example of Supply Chain Management. [I was fortunate to have been introduced to the subject by John Sterman] In general, delays (i.e. lead times) and variations in orders will do that Beer game effect to any supply chain, no matter where it's located. Apple products are "made in china" because of various reasons -- comparative advantage, business cluster etc. I'd highly recommend a good reading of systems dynamics (and business dynamics) for those looking for more info. For those interested, two recommended books: * "Clock Speed" by Charles Fine (MIT) * "Business Dynamics" by John Sterman (also of MIT, and a great professor): http://goo.gl/K4OG http://goo.gl/K4OG (Amazon.com link)

kreilly 15y ago

Yes, I did this in business school. We called it the "Bull Whip Effect" because a small movement on one end of the supply chain caused a dramatic impact on the other end.

Splines 15y ago

This would make an interesting RTS. 2 teams, 4 players on each side. Each economy can survive on their own, but there is a natural chain that can be built to allow one player on each side to have an overwhelming advantage over the other team (think "tip of the spear"). Only by carefully coordinating resources can you get this to work - the same costs in the beer game apply here (making too much of the upstream resource (inventory) has an opportunity cost in you not being able to produce your own units, and not making enough of the upstream resource (backlog) results in poor teamwork and and having the other team eventually out-pace you. Co-op RTS games sometimes have resource sharing, but I don't think I've ever seen one with a legitimate supply chain (maybe because it ends up being so difficult to coordinate).