Beer Game Supply Chain Simulation Dr CK Farn

Beer Game – Supply Chain Simulation Dr. CK Farn 2006 Spring 中央大學。范錚強 1

Simulation Settings Overly simplified supply chain Selling kegs of beer Roles Factory (warehouse) Distributor Wholesaler Retailer 中央大學。范錚強 2

Supply Channels From shop floor Transport delays Order processing delays Order 中央大學。范錚強 To 3 Consumers

Retailer Order beer from wholesaler Manages inventory levels Sells/ships beer to fill end-consumer’s orders 中央大學。范錚強 4

Wholesaler Order beer from distributor Manages inventory levels Sells/ships beer to fill retailer’s orders 中央大學。范錚強 5

Distributor Order beer from factory warehouse Manages inventory levels Sells/ships beer to fill wholesaler’s orders 中央大學。范錚強 6

Factory Schedule beer production in factory Manages finished goods inventory levels Sells/ships beer to fill distributor’s orders 中央大學。范錚強 7

Leadtimes Order processing delay Transportation delay Unit cycle time: one week 中央大學。范錚強 8

Cost structure Inventory holding cost: $1 for each keg of beer in the inventory at the end of each week Lost of sales cost $2 for each keg of beer that is backlogged at the end of each week 中央大學。范錚強 9

What you should do every week Receive beer from upstream supplier Receive order from downstream customer Ship the beer to fill the demand as much as possible, as inventory permit Backlogged orders must be filled in subsequent week, as inventory permit Send an order to your upstream supplier 中央大學。范錚強 10

Objectives Minimize total channel costs The total cost that the four members incurred through the exercise 中央大學。范錚強 11

Scenarios 1. lead time = 3 weeks Order delay = 2, transport delay = 1 2. lead time = 1 weeks Order delay = 1, transport delay = 0 3. lead time = 3 weeks Visibility– weekly POS data, downstream inventory level 4. lead time = 3 weeks Known average weekly demand pattern 5. lead time = 3 weeks 4 -week Rolling forecast available, 90% accurate 中央大學。范錚強 12

Beer Game Site http: //203. 68. 134. 3/~ckfarn/Beer. Game/ 中央大學。范錚強 13

Round #2 lead time = 1 weeks Order delay = 1, transport delay = 0 Change of roles R W W D D F F R 中央大學。范錚強 14

Round #3 lead time = 3 weeks Order delay = 2, transport delay = 1 Visibility– weekly POS data, downstream inventory level Change of roles again R W W D D F F R 中央大學。范錚強 15

Round #4 lead time = 3 weeks Order delay = 2, transport delay = 1 Average demand = 10 Winter weeks 1 -6; summer weeks 10 -18; winter weeks 22 -25 Change of roles again R W W D D F F R 中央大學。范錚強 16

Round #5 lead time = 3 weeks Order delay = 2, transport delay = 1 Rolling forecast Change of roles again R W W D D F F R 中央大學。范錚強 17

Rolling forecast W# 1 2 3 4 5 6 7 8 9 中央大學。范錚強 10 11 12 18

Rolling forecast 2 W# 10 11 12 13 14 14 16 17 18 10 11 12 13 14 15 16 17 18 19 20 21 中央大學。范錚強 19

Rolling forecast 3 W# 19 20 21 22 23 24 25 26 27 28 29 30 19 20 21 22 23 24 25 中央大學。范錚強 20

Case preparation Case 1: Prepare an analysis of the usage of the concepts you learnt through the Beer Game. a. What went wrong? How can the performance be improved? b. What are the important factors affecting supply chain performance? c. How can IT help in improving supply chain performance? 中央大學。范錚強 21