Reasoning

Beer Distribution Game

  • 1You are managing inventory at one level of a beer supply chain (Retailer)
  • 2Each week, customers place orders — fulfil them from your stock
  • 3Place orders upstream to maintain your inventory and avoid shortages
  • 4Watch out: there are delays between ordering and receiving stock
  • 5Your goal is to minimise total costs (holding cost + backlog cost)

What this measures

The Beer Game simulates a four-stage supply chain. It demonstrates how local rational decisions produce system-wide oscillations — the 'bullwhip effect.' Performance reflects understanding of feedback delays and systems thinking.

This demo takes approximately 7 minutes