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The Beer Game - MASHLM



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you are all now managers of a supply

chain of beer every week we're going to

play 450 simulated weeks every week a

consumer is going to come to the

retailer at your table and buy some beer

that consumer is actually going to be me

I'll have a lot of fun drinking your

beer and your job is going to be to

supply that beer as effectively as

possible at the lowest cost possible if

you look at your game boards you'll

notice that as I said before there's a

retailer a wholesaler a distributor and

a factory what happens is the consumer

buys beer from the retailer the retailer

places orders from the host to the

wholesaler and the wholesaler ships beer

to the retailer in turn the wholesaler

can place orders with the distributor

and the distributor ships beer to the

wholesaler in turn the distributor can

place orders with the factory the

factory ships beer to the distributor

and the factory can brew the beer so the

beer flows this way which would be added

to the street in this thing and the

information basically flows in the other

direction the orders flow that way so a

good performance in this game is going

to be getting the lowest total costs

possible so what we're going to do to

keep us focused on the supply chain

aspects of this game essentially is

assume that the retail selling price of

all of your beers is the same further

the actual cost of manufacturing is the

same as well so it's a little bit like

the procurement cost is identical the

cost of the mineral water in the hops

and the barley and all that stuff you

have to do to brew your beer same for

every table so the only difference in

the performance of one supply chain and

the other one is going to be how

effectively you manage the inventory the

costs of the inventory in your system

all you really need to know about this

is that in order to win this game here's

what you need to do you need to carry as

little inventory as possible but don't

run out

okay that's how you minimize costs

here's what's going to happen every week

I'm going to say everybody ready left

hand out right hand out slide slide and

when I say slide slide here's what I

want you to do I want you to slide the

stuff under your left hand into the big

inventory box and slide the stuff under

your right hand into the other box that

you just made empty the second step each

of these cards has a number on it the

number is the cases of beer your

consumer wants to buy from the retailer

so retailer

when I say fill orders I want you to

pick up the top card on the order deck

look at it show it to your partner so

what I want you to do is fill that order

that means you have to give those cases

of beer to your consumer just push the

chips into the pile now while the

retailer is doing that everybody else

needs to fill their orders also pick up

that slip that's got a number on it so

what you want to do is ship that number

of cases of beer into the shipping delay

out of your inventory so push those

cases of beer to your left out of your

inventory into the small black box

alright step 3 says record your

inventory or backlog so next we have

step number four what needs to happen is

each one of those slips of paper on this

side of the table needs to move one box

in that direction okay I want the

retailer to move the gray slip I want

the wholesaler to move the blue slip I

want the distributor to move the green

slip factories you have something

different I want you to do when I say

advance the order slips and breweries

brew when I say that breweries brew you

pick up the pink slip of paper you have

to follow this step which is brew those

number of beers cases of beer so you do

that by taking the raw materials out of

your PIN

and putting them in the first box that

says production delay exactly the number

that's on that slip so you're done with

four steps now well done notice you have

not make a single decision what a simple

job

all you got to do is follow the

mechanics of the game that's important

you don't have any choices in what

you've done so far each week in this

game you get to make one and only one

decision that decision is how many cases

of beer you want to order from your

supplier or if you're the factory how

many cases you want to schedule for

production so everybody ready left hand

out right hand out slide slide and fill

your orders so the orbit is tool 1 step

3 record your inventory or backlog all

right now advance the order slips and

breweries crew and place and record your

orders no no we're good 23 years and

place and record your orders for week

number 32

alright folks here we go week number 33

everybody ready

left hand out right and out slide slide

and fill your orders for week number 33

fill your orders record your inventory

or backlog for week number 33 advance

the order slips and breweries brew and

place and record your orders for week

number 33

you