Required Readings Learning Resources 1.Wisner, Joel D., Keah-Choon, Tan, G. Keong Leong. Principles of Supply Chain Management: A Balanced...

Required Readings & Learning Resources

1. Wisner, Joel D., Keah-Choon, Tan, & G. Keong Leong. Principles of Supply Chain Management: A Balanced Approach. USA: Cengage, 2016. Print or eText.

Appendix 1.1 (p.29)

2. Forio. The Near Beer Game. 2016. Website.

2. Bean, Micahel. Bullwhips and Beer: Why Supply Chain Management is so Difficult. Forio. 10 March 2006. Webpage.

4. Sterman, John D. Teaching Takes Off: Flight Simulators for Management Education: "The Beer Game." Massachusetts Institute of Technology. 2016. Webpage.

5. Chain Reaction: Managing a Supply Chain is Becoming a Bit Like Rocket Science. 31 January 2012.The Economist. 2016. Webpage.

Learning Activities

COMPLETE THE FOLLOWING LEARNING ACTIVITY.

THE NEAR BEER GAME EXERCISE (✔︎)

In this exercise you will simulate the supply chain by ordering cases of beer and trying to keep the supply chain in equilibrium. This simulation is similar to the Beer Game exercise described in Appendix 1.1 of the course textbook Principles of Supply Chain Management: A Balanced Approach, except that it removes the communication problems felt in the original game. Even when there are no breakdowns in communication, you can still feel the bullwhip effect due to procurement and manufacturing delays.

At the beginning of the game customers are ordering ten cases worth raw materials. In week two, demand increases to fifteen cases per week and remains at fifteen cases for the remainder of the simulation. The game ends when you manage to get your supply chain back in equilibrium for fifteen cases of beer. Your goal is to see how many weeks it takes you, and see if you can bring the supply chain back into equilibrium without the bullwhip oscillations of stock-outs followed by over-supply.

DIRECTIONS:

Select difficulty level novice mode. Your goal is to return the system to equilibrium so that 15 cases of beer are available in finished goods inventory week after week. You have 50 weeks to accomplish this objective.
Select "Start Simulation" and begin playing the game.
In the "Raw Materials Orders" box make your selection of how many raw materials you would like to order that week, and click "Submit". The screen will now update to the next week and will describe the new customer demand.
Continue playing until you either put the supply chain back into balance, or you have played for 50 weeks. The week that you are on can be seen in the top right hand corner of the screen.
Once the game is completed review the tabs (new customer orders, total customer orders, lost orders, inventory, and shipments) across the top of the screen. Take a screen capture (similar to Figure 1: Near Bear Game Tab Screen Capture Example) of each of these graphs and save them to insert, embed and reference in a text document (e.g. Microsoft Word) with your answers to the questions as stated below. If you feel ambitious, try the simulation again at Expert mode (not required)!

Figure 1: Near Bear Game Tab Screen Capture Example

QUESTIONS:

In a text document (e.g. Microsoft Word), answer the following questions about your Near Bear gameplay:

Part A

How many weeks did it take you to reach equilibrium?
Describe what inventory shortages you experienced?
Did you ever have more inventory than customer orders? Why or why not?
How did you adjust your production/raw orders to meet customer demand?

Part B

Describe the bullwhip effect, and explain the impact it had as you were playing the game.
Embed each of the graph screen captures from your Near Bear game play as stated in Point direction 5 from the Directions section above. Label each graph. Then, describe the trend that you denote in the graphs for new customer orders, total customer orders, lost orders, inventory, and shipments. (10 marks)
Describe the importance of demand forecasting and the forecasting techniques used within the supply chain as it pertained to your application in game play. What information/technique did you use or make your forecasting decisions?

Part C

Critique your ability to meet equilibrium to meet needs and/or supply chain mandates? What would you do the same or differently? Explain.
What solutions would you suggest to each of the characters (raw material supplier, vendors, brewers) in the game? Why?
Explain how you made decisions to meet equilibrium. Which pieces of information aided you the most to make these decisions. Why?