Beer game
The beer game or the "MIT Beer Distribution Game" is a role-playing game in which the participants take different positions in a distribution chain. The aim is to keep the costs of the entire chain as low as possible. Since the individual parties are not allowed to exchange their information in full, but only communicate with each other via order quantities, attention is usually only focused on their own situation. The result is that the system builds up very quickly as the whiplash effect is known (bullwhip effect).
The beer game was developed around 1960 at the Massachusetts Institute of Technology (MIT) by the System Dynamics Group under the direction of Jay Forrester . Using game theory, the students should be shown the dynamics of a supply chain in a very simple game. The game became known to a wider audience through the book Die Fifth Discipline by Peter Senge , where a detailed description of the normal course of the game can be found. Meanwhile, the beer game has developed into a classic in management training .
Description and rules
- a game master as a customer
- Players: 4 parties (retailer, wholesaler, distribution center, brewery)
- Commercial good: beer crates
- Storage costs: 0.5 monetary units (GE) per week and box
- Delayed delivery costs: 1 GE per week and box
- Initial inventory: 12 boxes per batch
- A game consists of 52 rounds (52 weeks)
- Total playing time: 2–3 games (2–4 hours)
- the individual trading levels are only allowed to communicate with each other via order and delivery quantities
To be able to describe the flow of goods, tokens or coins are used in the appropriate amount. But lists are also used.
- List 1 with the columns: week, opening stock, goods receipt, delivery, closing stock
- List 2 with the columns: week, order, delivery, delay
List 1 represents the warehouse management in the corresponding trade level and remains with this. List 2 is used for communication between the trading levels. It always circulates between the trading levels from the customer to the supplier and back again and is provided with the corresponding values.
procedure
The first order is placed. Everyone orders 4 crates of beer from their supplier and receives them. After that, the orders are placed covertly. The game master (customer) will continue to call up 4 boxes on a regular basis. When he notices that the parties have got used to the game, he increases his demand to 8 boxes and holds that until the end (52 weeks). Despite this one-time change, the demand at the individual levels of trade fluctuates considerably. At the end, the total costs are determined. In the second and third game, some rules are changed. In this way, everyone can exchange information about their ability to deliver, a trade level is removed or quick deliveries between breweries and retailers are permitted.
rating
The beer game impresses with its simplicity and transparency. Despite simple rules, it is difficult even for experienced logisticians to prevent it from rocking. The learning effect and the resulting curiosity and willingness to change are considerable. For this reason, the beer game is often used when starting change management projects. The simplicity has a disadvantageous effect on the general validity and the accuracy. The educational goals and the transferability to your own company must therefore be clarified in advance.
The game can be classified into the areas of logistics , supply chain management , process management and business reengineering .
Understanding
The system structure determines the system behavior. Problems are not primarily caused by external factors. Dynamic systems create their own problems.
The structure of social systems shows that the focus is on one's own decisions. In addition, there are very few analyzes of how one's own behavior affects others. There would be significant improvements through a more collaborative mindset.