The Beer Game: a Production/Distribution Simulation 

THIS IS THE FAMOUS BEER GAME!   

Good for 4 APICS Maint points. 

The Beer Game was developed by Jay Forrester at MIT's Sloan business school in the early 1960's. It is a simple yet realistic simulator of the supply chain and is used as a teaching tool for systems dynamics. It has been played all over the world by thousands of people ranging from high school students to chief executive officers and government officials. Each participant plays a role in the production and distribution of a product, in this case "beer".

Their objective is to manage inventory to simultaneously achieve optimal customer service while minimizing inventory, which turns out to be a challenging task. Players will:

• gain an appreciation of the supplier/customer relationship
• learn the importance of supply chain visibility
• appreciate the impact of lead times.

Most significantly, they learn how their decisions have an impact on the supply chain as a whole.

Additionally, this workshop will highlight the following supply chain best practices:

• replacing forecasts with actual demand
• smoothing variability utilizing max/min ordering
• disintermediation of non-value added supply chain nodes

Note: participants are not required to bring anything (laptops, cell phones, notepads, conference portfolios, pens/pencils) as everything they need will be provided at the tables. The tables hold “game boards” that do not allow room for anything, including drinks and/or food.

YOUR FACILIATOR

Michael D. Ford, MSISE, CFPIM, CSCP, CLTD, CQA, CRE, CQE, ACPF, CPSM, CSSGB is Principal of TQM Works Consulting, for which he is widely recognized as a premier provider of corporate training across a wide array of subjects. He provides innovative solutions based on 30 years of experience in retail, distribution, manufacturing, and consulting. His work history includes software implementation, business planning, inventory management, distribution planning and education. This includes a broad range of experience from ETO to MTS, as well as non-profits, service, and Department of Defense.