THE BEER GAME

AGENDA Presentation of İstanbul Kültür University Presentation about Supply Chain Management Introduction to “Beer Game” Lunch Break Selection of “Beer Game-Team Members” Playing Beer Game Entry of game results to computer Debriefing of Beer Game Announcing the WINNER team

Team member roles R1: Retailer, R2: Retailer (score sheet) W1: Wholesaler, W2: Wholesaler (score sheet) D1: Distributor, D2: Distributor (score sheet) F1: Factory, F2: Factory (score sheet) C: Carrier P: Producer

ESSENTIAL RULES - 1 Every order has to be fulfilled, either directly (if the players’ inventory is enough) or later in subsequent rounds. Inventory and backlog result in cost; each item in stock costs EUR 0.50 per week, while each item on backlog costs EUR 1.00. Hence, the optimal strategy for the players is to run their business with as little stock as possible without being forced to “move into backorder”. Players are not allowed to communicate. No speaking, no looking at other’s cards, no cheating. During each week, the Retailer is the only one to see the customers’ actual demand. The Retailer is prohibited from telling the demand to the Wholesaler, Distributor, and Factory.

ESSENTIAL RULES - 2 Values of game chips as below; BLACK  5 beers WHITE  1 beer BLUE  0 beer (if shipping quantity is zero) While writing on the order card, underline 6 and 9 so that it is not confused. It is allowed to make orders with zero quantity. In such cases write zero on the order cards. Similarly, it is allowed to ship zero quantity when inventory is zero. If shipping quantity is 0; player has to put a blue chip on “shipping delay” box. When a team finishes their steps for a week, they HAVE TO WAIT FOR THE BELL RING to start the next week. If they don’t wait the bell ring, they will pay 50 Euro as penalty.

THE BOARD

STEPS OF THE “BEER GAME” STEP 1: “Shift beers on shipping delay boxes.” Shift towards left the beers in the two Shipping Delays boxes at your right, adding incoming beer (if any) to your Inventory. STEP 2: “Look at Incoming Order, and fill Backlog & Order.” Look at the Incoming Order and, try to ship sum of backlog and incoming order. Retailer : Place Customer Incoming Order Card face-down in the box of Used Order Cards. Wholesaler-Distributor-Factory : Slide Incoming Order Card under the table STEP 3: “Record Inventory or Backlog.” On your form, record new Inventory or Backlog. STEP 4: “Shift Order Placed Cards, and Producer brew beer.” Carrier : For Wholesaler, Distributor and Factory, shift right each of Order Placed cards to the Incoming Order boxes. Producer : Brew new beer by placing chips as many as the quantity on the Production Order card into the right-most Production Delay, and then discard the card. STEP 5: “Decide and write down your new order on the order card and record it on your form.” Retailer, Wholesaler, & Distributor : Write your next order on a new order card and place it face-down in the Order Placed Box on your upper right box, and record the quantity on your form. Factory : Write your next order on a new production order card and place it face-down in the Production Order Box on your upper right box, and record the quantity on your form.

START-UP Decide which team members will play the positions of Retailer, Wholesaler, Distributor, and Factory. Pick a name for your team’s beer. Write on your Recording Form the name of your team and your position. The game will continue week-by-week for 35 weeks.

AGENDA Presentation of İstanbul Kültür University Presentation about Supply Chain Management Introduction to “Beer Game” Lunch Break Selection of “Beer Game-Team Members” Playing Beer Game Entry of game results to computer Debriefing of Beer Game Announcing the WINNER team