Supply Chain Management

The Beer Game Illustrates Supply Chain Management

Professor Larry Navarre, lecturing at Kettering University, divided his audience into Factory, Distribution, Wholesalers and Retailers and played the Beer Game, which is also available as a board game or software simulation.  The lively interactive session illustrated Supply Chain Management in a way those students are not likely to forget, but took up too much time.  The professor had much valuable information to share and ran out of time, so watch for other videos of his lectures.

The Characteristics of Supply Chain Management

Performance Excellence

Collaboration with Supply Chain Partners

Information Technology

The System of Dynamics Principles

This was illustrated by The Beer Game.  Small changes by the consumer reflect in large changes in the chain.  It prepares you for the expectation of failure: the importance of lead time and the reduction of variation.  Isolation of the participants is a big factor, along with structural problems, delays and overcompensating.

He goes on to give strategies for easing the “Bullwhip” effect, so watch the video to the end.