Beer Game

Posted in Operations and Supply Chain Terms, Total Reads: 1865

Definition: Beer Game

The beer game is a simulation game prepared by a group of professors at the MIT Sloan School of Management way back in the 1960s.

It is a game meant for classroom teaching for the students to be able to understand the concepts of multiple supply chain management for the distribution of a single product in the form of beer.

It is played with a minimum of four players where each player assumes the role of one of the stages of the supply chain with the customer demand known only to the bottom-most component of the supply chain. Hence, the game also allows the players to learn the concepts such as Bullwhip effect etc.


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