the concept of the supply chain is elucidated through the beer game
In the business world, the concept of the supply chain is elucidated through the beer game. My experience as I indulged in the different stages of the game and solely based on how well I understood the game. Being a role simulation game, I feel like the game is strategically developed with well-0structured concepts to mimic a real-life application of the supply chain. It incorporates all the problems and challenges that arise, even on a real-life application level. In a real sense, every decision I made throughout the game had a repercussion on the result. By this, I mean that the game is highly dependent on different ideas and arrangements (SABELL, 2018). Besides, I felt like the game required a wide range of coordination to mitigate the problems existing in the supply chain process. In other words, since the game is highly dependent on decisions, it means that information is required. My experience was idealized by the importance of incorporating different work cycles through groupings and resource sharing among the groups.
In my opinion, what makes the game so appealing is its ability to salvage the human mind. Participants get to think keenly before making decisions that bear results, as seen on the debriefing. The structure of the supply chain is identical to that commonly utilized in the real world. As such, individuals have significant control over the different processes and activities within the supply chain. Moreover, the process is complicated, especially at the start of the game when the rules about the game are not known. Since the game involves making the right decision on manufacture, retailer, and wholesale grounds, the results from the debrief must be highly projected. From my experience, the beer game teaches many challenges and devices in different ways of mitigating these challenges.
Description of manufacturer, retailers, distributor, and wholesaler
Based on the game, the results of the beer game represent a version of digital data necessary for the supply chain process. Regarding the wholesale, the whole process took fifty weeks to be completed. During these weeks, the supply chain required a total of €263,025 to run the entire operation (“MA-system Beer Game,” 2020). The process involved the inputs from the stakeholders who were a valuable asset to the game. During the fifty weeks, at least one of the stakeholders experienced backlog. It is the accumulation of uncompleted work. During the ten weeks of operation, the retailer was out of stock. It meant that beers were not available for 16% of all the time. In the supply chain, this is a significant imbalance in the entire process. Besides, there has to be consistency in supplying to the retailers. Throughout the fifty weeks, the most considerable order was sent out by the manufacturer on week 30. The order was a total of 82 pieces.
Retailers, on the other hand, had the following results from the beer game. In general, throughout the entire session in the supply chain, the cost incurred was a total of €132,905 (“MA-system Beer Game,” 2020). It means that this is the total amount of money required in the supply chain to run all the processes. The process took a total of 49 weeks to completion of the first cycle. During this time, at least one of the shareholders experienced a backlog. In terms of numeric, this was a total of 98% of the total time. On the brighter side, sufficient strategies were put in place to ensure that the retailer no longer went out of stock. Ideally, this means that there was enough beer to be sold. In terms of variability, the most significant order was sent on the 31st week encompassing a total of 65 pieces. Either way, a bullwhip effect is noted where the variations continue to increase, we the processes move up the chain from consumers to raw-material accretion.
The manufacturers, on the other hand, exhibited a lower cost structure of €68,510 (“MA-system Beer Game,” 2020). It means that this was the amount of money that was required to run all the processes within the beer operation. Ideally, the process took a total of 43 weeks to complete. During these weeks, at least one of the stakeholders had a backlog.
In terms of percentage, it was about to 86% of the total session time. Either way, it is unfortunate that for 16 weeks, the retailer was out of stock of the beers. It means that during 24% of the entire time, there was no beer available for sale. Either way, regarding the variability, the biggest purchase of beer was sent by the manufacturer on week 7. It was a total of 80 pieces. Regardless, the manufacturing process suffered from a bullwhip effect. During this phase, stakeholders start to shift and alternate between over-stock and out of stock.
The distributors, on the other hand, required a total of €101,105 to run all the processes within the supply chain (“MA-system Beer Game,” 2020). The entire session took a total of 48 weeks, with at least one of the stakeholders experiencing a backlog. The value mentioned was a total of 96% of the distribution process’s total session time across the supply chain. On the other hand, the retailers were out of stock for three weeks of the entire session. It means that during this time, there was no beer to be sold. Variability, on the other hand, had its biggest shipment sent out by the manufacturer on week 5. It was a total of 81 pieces.
Analysis through research
A lot of research has been done on the different constructs of the beer game. The analysis encompasses an overview of the bullwhip effect, the various aspects of the supply chain, and the way information flows. Aspects of stock control are also analyzed while analyzing different means of choosing the right supplier for the distribution process. It is only possible to control the amount of stock if various aspects of the consumer are considered. The analysis of the bullwhip effect cannot be underrated as well. Consumer demand is the primary connector to the supply chain. It means that the production of raw materials and goods is dependent on the different levels of customer demand. For instance, the demand forecast should tally with the ultimate consumer demand.
In one instance, it may involve selecting while keeping in mind the different price lists. Different priorities and strategies in the business are fundamental in gauging the best practice for supplier selection. In manufacturing, for instance, the supply chain is affected in a variety of ways. It includes raw materials needed for production, costs, and profitability of manufactured goods, price lists, and the consumer needs preference. Best practices ensure that an understanding is developed on how the real supply chain works (Turner et al., 2020). Also, a deeper understanding of how to interpret the results from the beer game and relate it to real-life experience is crucial. Regarding the supplier selection practices, a lot of considerations are to be made, as illustrated below.
It is essential to make an analysis and identify the different supplier options. It can be done by evaluating the supplier reputation, price list, or the credibility of the supplier. Doing so ensures that comparison is made on every existing supplier before coming to a final decision. After this, it is essential always to measure supply performance while linking it to consumer demand and needs. After every delivery, feedback must be availed to know the quality of processes or where to improve individually. Another best practice is creating a good rapport through effective relationship building that can necessitate the development of partnerships (Turner et al., 2020). Additionally, various practices within the chain can help build good relationships such as reliability of inputs, focusing on trueness and credibility, and investing in ethical concerns. Supplier and consumer integration is essential in building a suitable reward mechanism in the supply chain to ascertain loyalty.
Concerning the game, the retailer and wholesaler are connected in a variety of ways. As seen from results, the retailer gets goods from the wholesaler. In other words, the retailer relies on the wholesaler for a stock refill (Sabell, 2019). Consumers, on the other hand, play a vital role in the supply chain. In essence, their main deal is affecting the decisions of the suppliers, as consumer behavior should be guided by different ethical ethics and active order taking practices. The economic implication of the game scenario is that it helps shape how decisions are made in a supply chain environment.