Overview of chapter 7
This chapter is based on the two computer based simulation games which come with your text book. The idea is to practically involve you with the concepts we have covered so far before we move on to the remaining parts of our course. The two games we introduce in this chapter are the Beer Distribution Game and the Risk Pooling software. These are interactive simulation games which provide valuable insights into some of the fundamental supply chain management issues.
Learning outcomes
By the end of this chapter, you should be able to:
- explain how to play the Beer Distribution Game
- explain why information gets distorted in a distribution chain
- discuss the effect of a firm's inventory policy on its cost and revenue
- demonstrate the benefits of centralised decision making in a distribution chain
- demonstrate the effects of risk pooling on total system costs under various demand scenarios.