The Beer Game is a renowned educational simulation that has been an integral part of supply chain management courses for decades. Developed at the Massachusetts Institute of Technology (MIT) in the 1960s, the game was designed to help individuals gain insights into the complex dynamics of supply chains and the challenges of managing inventory and demand fluctuations.
The Beer Game was originally created by Professors Jay Forrester and John Sterman at MIT's Sloan School of Management in the early 1960s. It emerged during a period when businesses were increasingly recognizing the importance of effective supply chain management. The game's inception was rooted in a desire to provide students and professionals with a practical, hands-on experience of the challenges faced by supply chain managers.
The primary purpose of the Beer Game is to offer participants a dynamic learning experience in supply chain dynamics, emphasizing the following key objectives:
The Beer Game simulates a simplified supply chain for a beer distribution network, consisting of four entities: a retailer, a wholesaler, a distributor, and a brewery. Participants are typically divided into teams, with each team responsible for managing one of these entities. The game is played in rounds, with each round representing a week or a period of time.
1. Order Placement: In each round, players make decisions regarding how many units of beer to order from the upstream entity (e.g., retailer orders from the wholesaler), taking into account current inventory levels and expected customer demand.
2. Delays and Information Lag: Delays are intentionally introduced into the game to simulate the time it takes for orders to be processed and delivered. This highlights the impact of information lag on decision-making.
3. Demand Fluctuations: Random demand fluctuations are injected into the game to simulate the variability in customer orders. These fluctuations can create challenges in inventory management.
4. Learning and Adaptation: As the game progresses, participants experience the bullwhip effect, where minor fluctuations in demand at the retailer level can lead to amplified variations in orders up the supply chain. Participants learn to adapt their ordering strategies based on past experiences.
The Beer Game offers several educational benefits:
The Beer Game remains a powerful educational tool in supply chain management courses, offering participants a dynamic and immersive experience in understanding the complexities of supply chains. With its historical significance and enduring relevance, the game continues to prepare individuals for the challenges and opportunities in the world of supply chain management, ensuring that they are well-equipped to address the intricacies of modern supply chain dynamics.
This simulation game is suitable for anyone who is interested in getting a more intuitive understanding of the dynamics of supply chains, irrespective of level of seniority, corporate function, or industry.
Currently, Dr. Lockstrom is Executive Director of Institute for Advanced Operations and Supply Chain Management (IIOM), Shanghai, China. Previously, he was Senior Associate Professor of Operations Management at Xi’an Jiaotong-Liverpool University in Suzhou, China, where he did teaching and research in the areas of operations and supply chain management. Dr. Lockstrom received his BSc/MSc in Industrial Engineering and Management at Chalmers University of Technology and his PhD in Operations Management from European Business School, Germany. He has previously taught graduate courses at European Business School, Moscow State University, Tongji University and MBA courses at CEIBS, Webster University among others. He has published more than 50 academic and practice-oriented papers and book chapters, and made more than 60 conference appearances. Dr. Lockstrom has more than two decades of consulting experience working with several dozen Fortune 500 companies.
This program is delivered as a tutor-led offline event. The event will take place between 7-9pm on Oct 31st in downtown Puxi (exact location will be communicated at later). Event language is English. Lighter food and beverage will be served before event start. IIOM reserves the right to reschedule and/or re-allocate participants to other dates in case of insufficient attendee numbers.
Registrations are processed on a first-come, first-serve basis. Minimum number of attendees is 4 and the maximum is 40. IIOM reserves the right to cancel or postpone the course in case the minimum number of participants is not fulfilled.
The registration fee is 150 RMB for IIOM members and 290 RMB for non-members (please click here >> for information about how to become member). The full fee must be paid latest at the date of the event, before the actual start. Payment details will be sent once registration is complete.
Cancellations or changes of a registration may be made without penalty at least 3 working days before the start of the event. If a confirmed booking is cancelled within 3 working days of the start of the course, a cancellation fee equaling to 50 percent of the total course fee will be charged. If an applicant is unable to attend the course without prior notice, no refund will be paid. All changes and cancellations are subject to the final confirmation of IIOM.
For further information on this course, please contact us at the information below. IIOM International Institute of Operations Management Shanghai IFC, Tower II, 36/F, Shanghai 200120, P.R. China Tel: +86 (0)21-6062 6290 | Fax: +86 (0)21-6062 6399 E-Mail: info@iiom-web.org
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