Beergame - 3 Advance order slips(factories brew 4 Place...

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© Warren H. Hausman Beer Game Wholesaler Distributor Factory Retailer Each Stage: s Holds Inventory s Receives Orders from Downstream (after Mail Delay) s Ships Beer Downstream to meet Orders s Places Replenishment Orders on Upstream s Receives Beer (after Shipping/Production Delay) Rev. 5/02
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© Warren H. Hausman Rules s Chip Value: White, Blue = 1 case; Red = 10 cases s Holding Cost: $.50/case/week s Backorder Cost: $1.00/case/week ($2 for Retailer) s Total Cost = Sum of Costs at all four Stages s Goal: Minimize Total Cost s NO COMMUNICATION BETWEEN STAGES!!! s Retailers must not reveal actual customer orders
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© Warren H. Hausman 1. Receive Inventory and Advance Shipping 2. Fill Orders and Backlog; RECORD Inventory and Backlog
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Unformatted text preview: 3. Advance order slips (factories brew) 4. Place order; RECORD order Steps of the Game: © Warren H. Hausman Backlog Accounting Week Inventory or Backlog Orders Placed 1 12 4 . . . 6 7 8 2 4 Suppose Week 7 receipts = 4, orders = 7; Suppose Week 8 receipts = 4, orders = 10 © Warren H. Hausman End of Game s Calculate Total Cost at your Stage s Plot your Weekly Orders on Sheets Provided s Plot your Inventory and Backlog s Plot your Guess of Consumer Demand Pattern s Sum Team Costs over all Four Stages s Tape Results on wall as follows: Retailer Wholesaler Distributor Factory Tot. Cost Orders Inventory Guess...
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This note was uploaded on 06/16/2010 for the course MS&E 262 taught by Professor Warrenhausman during the Spring '08 term at Stanford.

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Beergame - 3 Advance order slips(factories brew 4 Place...

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