Supply Chain Strategies I: Aligning Strategies; Efficiency and Cost Savings (back to catalog)

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...For this single-player Beer Game simulation, you will be the Distributor in the following supply chain:

Your job is to order beer from the Factory and fill orders you receive from a Wholesaler...

...Each week, the values in the "Current Status" area will update. Your "Initial Inventory" box will show a positive number if you have beer in stock, and a negative number if you are in a stockout situation and have a backlog of unfilled customer orders. If a partial shipment is possible, that will happen, and a partial backorder will be recorded. If you are totally out of stock, the entire customer order will be backordered. Beer Game rules typically state that the weekly cost of a backorder is twice as high as the cost of holding inventory. You should keep this in mind when making ordering decisions; remember, the goal of the simulation is to maintain low "Current Inventory" without stocking out.

Go ahead and play some rounds (the simulation ends at 30 weeks); make sure to do them quickly, taking no more than 30 seconds to decide on your quantity to order from the Factory. After you have played up to at least week 17, press the "Make Chart" button to view your results.

Beer Game Simulation
(Disabled for preview)
Current Status for Week: 
Enter Order Below:
Processed this morning:

(backlog if


(backlog if

Your Order:  (0 - 100)

When you reach at least week 17: 
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...charts from the simulation you just played, all graphed with the same scale, are shown below:


List Price: $60 -

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Save $25 on "Fundamentals of Supply Chain Management" bundle; buy modules SCM102, SCM103, SCM104, SCM105, and SCM106 together and save $25 (see course catalog for details)

SCM102 Specifications

Title: Supply Chain Strategies I: Aligning Strategies; Efficiency and Cost Savings

4.4 / 5  (1896 ratings)

Total Reading Time: Approx. 1 - 2 hours (for average readers)

Word Count: Approx. 9,000 words


Certificate: Counts toward Fundamentals of Supply Chain Management

Datasheet:  Download


  1. Introduction to Supply Chain Strategies
  2. Functional vs. Innovative Products
  3. Efficient vs. Responsive Supply Chain Strategies
  4. Aligning Products and Strategies
  5. Product Life Cycle Revisited
  6. Improving Efficient Supply Chains
  7. Beer Game Introduction
  8. Beer Game Simulation
  9. Beer Game Results
  10. Bullwhip Effect: Importance and Causes
  11. Cause 1: Information Distortion
  12. Cause 2: Order Batching
  13. Cause 3: Promotions
  14. Cause 4: Allocation Gaming
  15. Counteracting Information Distortion: Forecasting Problems and the Hockey Stick Effect
  16. Counteracting Information Distortion: Vendor-Managed Inventory (VMI)
  17. Counteracting Information Distortion: Supplier Managed Availability (SMA)
  18. Counteracting Information Distortion: Reducing Lead Times, Reserving Capacity, and Direct Sales
  19. Counteracting Information Distortion: Keeping Safety Stocks Steady
  20. Counteracting Order Batching
  21. Counteracting Promotions
  22. Counteracting Allocation Gaming
  23. Conclusions
  24. Test Your Knowledge
  25. Feedback
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