The Beer Game

Who is this course for?

The Beer Game is a dynamic and interactive simulation originally developed by MIT to illustrate the complexities of supply chain management, making it highly relevant for professionals in logistics, operations, and management roles.

In this activity, participants assume one of four key positions within a supply chain - Retailer, Wholesaler, Distributor, or Factory - each tasked with managing fluctuating customer demand while keeping costs low.

Throughout the game, participants manage inventory and place orders based on limited communication and delayed information, which mirrors real-world supply chain challenges.

A core learning point of the game is the 'bullwhip effect,' where small changes in consumer demand at the retail level cause increasingly larger fluctuations in inventory and orders as they move up the chain.

The simulation provides a practical, hands-on experience to understand how individual decisions can affect the efficiency and performance of the entire supply chain.

Benefits

Participating in the Beer Game offers valuable insights into supply chain management, inventory control, and decision-making processes. It provides a unique opportunity to experience first-hand the impact of coordination, communication, and strategic planning on the flow of goods.

By confronting the challenges posed by delayed information and lack of transparency, participants can better appreciate the importance of real-time data sharing and collaboration in reducing inefficiencies.

The game highlights key lessons in systems thinking and helps professionals develop skills in anticipating and mitigating issues such as overstocking, shortages, and costly disruptions.

Whether your role involves logistics, procurement, or management, the Beer Game equips you with actionable knowledge to enhance your organisation's supply chain operations and improve overall business performance.

Introduction and Objectives

Welcome and course overview.
Explanation of the Beer Game and its relevance to supply chain management.

Beer Game Simulation Round 1 Setup

Explanation of game rules and roles: retailer, wholesaler, distributor, factory.
Roles assigned to participants.
Overview of game mechanics: placing orders, managing inventory, and dealing with delays.

Debrief and Analysis

Discussion of results and common challenges encountered.
Review of the bullwhip effect as seen in the game.
Analyse decision-making processes and communication gaps within the team.

Beer Game Simulation Round 2 Setup

Explanation of new game rules and roles.

Second Debrief and Analysis

Discussion of results, challenges and successes.

Engineering/Construction Game Simulation Round 3Setup

Explanation of new scenario game rules and roles.

Key Learnings and Applications

How the Beer Game principles apply to real-world business scenarios.
Strategies for improving supply chain efficiency, reducing costs, and enhancing collaboration.
Q&A session and discussion of practical takeaways for participants’ organisations.

Conclusion and Next Steps

Summary of key lessons learned.
Recommendations for applying insights in participants' businesses.
Feedback and closing remarks.

Face-to-face training

Training is held in our modern, comfortable, air-conditioned suites.

Lunch, breaks and timing

A hot lunch is provided at local restaurants near our venues:

• Bloomsbury
• Limehouse

Courses start at 9:30am.

Please aim to be with us for 9:15am.

Browse the sample menus and view joining information (how to get to our venues).

Refreshments

Available throughout the day:

• Hot beverages
• Clean, filtered water
• Biscuits

Online training

Regular breaks throughout the day.

Learning tools

In-course handbook

Contains unit objectives, exercises and space to write notes

24 months access to trainers

Your questions answered on our support forum.