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Beer Game – Supply Chain Simulation. Dr. CK Farn 2006 Spring. Simulation Settings. Overly simplified supply chain Selling kegs of beer Roles Factory (warehouse) Distributor Wholesaler Retailer. Supply Channels. From shop floor. Transport delays. Order. Order. Order processing - PowerPoint PPT Presentation
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Beer Game – Supply Chain Simulation
Dr. CK Farn2006 Spring
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Simulation Settings
Overly simplified supply chainSelling kegs of beer
RolesFactory (warehouse)DistributorWholesalerRetailer
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Supply Channels
Factory
Distributor
Wholesaler
Retailer
訂單
訂單
訂單
Factory
Distributor
Wholesaler
Retailer
訂單
訂單
訂單
Order
Order
Order
Order processingdelays
Transportdelays
From shop floor
To Consumers
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Retailer
Order beer from wholesalerManages inventory levelsSells/ships beer to fill end-consumer’s orders
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Wholesaler
Order beer from distributorManages inventory levelsSells/ships beer to fill retailer’s orders
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Distributor
Order beer from factory warehouseManages inventory levelsSells/ships beer to fill wholesaler’s orders
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Factory
Schedule beer production in factoryManages finished goods inventory levelsSells/ships beer to fill distributor’s orders
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Leadtimes
Order processing delayTransportation delay
Unit cycle time: one week
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Cost structure
Inventory holding cost: $1 for each keg of beer in the inventory at the end of each week
Lost of sales cost$2 for each keg of beer that is backlogged at the end of each week
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What you should do every week
Receive beer from upstream supplierReceive order from downstream customerShip the beer to fill the demand as much as possible, as inventory permitBacklogged orders must be filled in subsequent week, as inventory permitSend an order to your upstream supplier
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Objectives
Minimize total channel costsThe total cost that the four members incurred through the exercise
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Scenarios
1. lead time = 3 weeksOrder delay = 2, transport delay = 1
2. lead time = 1 weeksOrder delay = 1, transport delay = 0
3. lead time = 3 weeksVisibility– weekly POS data, downstream inventory level
4. lead time = 3 weeksKnown average weekly demand and demand pattern
5. lead time = 3 weeks4-week Rolling forecast available, 90% accurate
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Beer Game Site
http://203.68.134.3/~ckfarn/BeerGame/
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Round #2
lead time = 1 weeksOrder delay = 1, transport delay = 0
Change of rolesR WW DD FF R
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Round #3
lead time = 3 weeksOrder delay = 2, transport delay = 1
Visibility– weekly POS data, downstream inventory level Change of roles again
R WW DD FF R
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Round #4
lead time = 3 weeksOrder delay = 2, transport delay = 1
Average demand = 10Winter weeks 1-6; summer weeks 10-18; winter weeks 22-25 Change of roles again
R WW DD FF R
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Round #5
lead time = 3 weeksOrder delay = 2, transport delay = 1
Rolling forecast Change of roles again
R WW DD FF R
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Rolling forecastW# 1 2 3 4 5 6 7 8 9 10 11 12
123456789
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Rolling forecast 2W# 10 11 12 13 14 15 16 17 18 19 20 21101112131414161718
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Rolling forecast 3W# 19 20 21 22 23 24 25 26 27 28 29 3019202122232425
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Case preparation
Case 1: Prepare an analysis of the usage of the concepts you learnt through the Beer Game. a. What went wrong? How can the performance be improved?b. What are the important factors affecting supply chain performance?c. How can IT help in improving supply chain performance?
