The Beer Game

The Beer Game is a supply chain simulation that illustrates how complex and interconnected decisions impact product availability and costs. Participants take on roles like retailer, wholesaler, distributor, or factory, managing the flow of beer to meet customer demand. Each role orders inventory based on perceived needs, but delays and limited communication can cause fluctuations, known as the "bullwhip effect," leading to overstocking or shortages. The game highlights how decentralized decision-making and lack of coordination can create inefficiencies, emphasizing the importance of communication and integrated planning in supply chain management.