7.1 Introduction

We have discussed the phenomenon of the bullwhip effect in chapter 5 and have seen how demand information gets distorted as it travels upstream in a supply chain. We have looked at the reasons for this phenomenon and have discussed managerial insights for minimising this effect which introduces system efficiency and sub optimality. The beer game allows us to participate in a simulated distribution game and to visualize the effects of information invisibility and independent decision making on the overall supply chain performance. The risk pooling game, on the other hand shows the benefits of inventory centralization under various demand situations.

It is necessary that you read relevant sections of the books ( Appendix A and B) thoroughly to make your self familiar with the concepts and procedures for playing these games.

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