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  • June 1994 (Revised October 1999)
  • Background Note
  • HBS Case Collection

Beer Game, The: Board Version

By: Janice H. Hammond
  • Format:Print
  • | Pages:9
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Abstract

The beer game is an exercise that demonstrates supply channel dynamics. Simulates the flow of material and information in a simplified channel of beer production and distribution, focusing on the linkages among a beer manufacturer, its distributors, a wholesaler, and a retailer. Students are organized into teams of four, each assigned to place orders and manage inventory for one firm in the channel. In this simplified channel, orders are the only information allowed to flow among channel participants. Despite the simplicity of the simulation, most teams find it extremely difficult to keep inventory and stockout costs low. The instructor can work with students to understand the nature of the problems they experience, identify the causes, and discuss possible remedies. The 90-minute exercise is played on game boards that are available from the Systems Dynamics Society (518-442-3865).

Keywords

Cost Management; Information; Distribution Channels; Production; Supply Chain Management; Problems and Challenges

Citation

Hammond, Janice H. "Beer Game, The: Board Version." Harvard Business School Background Note 694-104, June 1994. (Revised October 1999.)
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About The Author

Janice H. Hammond

Technology and Operations Management
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More from the Author
  • FLEXE, Inc.: Pioneering On-Demand Warehousing & Fulfillment By: Janice H. Hammond and James Barnett
  • Precision Paint Co. By: Iavor I. Bojinov, Chiara Farronato, Janice H. Hammond, Michael Parzen and Paul Hamilton
  • African American Inequality in the United States By: Janice H. Hammond, A. Kamau Massey and Mayra G. Garza
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