Brewery - First Step In Game

Even if the brewery is not the "really first" step of the supply chain beer - we know there is s.th. like water, hop, malt yeast, but also bottles, bottle caps, labels and a whole bunch more like special tools and so on -

we assume within the beergame the brewery as the first step of the supply chain.

while talking about supply chain: some people would name more correctly the customer as first step!

Important: When the brewer orders some beers within its own production, we know for sure, the beer will be there within the next but one period, e.g. when the brewer orders in week 4, the beer will be available for the brewer in week 6.

Distributor - Second Step in the Game

Even if the brewery is not the "really first" step of the supply chain beer - we know there is s.th. like water, hop, malt yeast, but also bottles, bottle caps, labels and a whole bunch more like special tools and so on - Within this game, the distributor has to order beer at the brewery, and deliver it to the wholesaler. In the actual period, the distributor will receive what was ordered two periods ago. Any outstanding orders from the past are thus initially covered in the best possible way. Understood?

If not, you really should play this game! - if yes, it's a must to play this game to learn how to reduce out of stock situations while reducing cost from overstocks.

Considering this, the task of the distributor is to ensure an excellent supply of the wholesaler, at the lowest possible inventory costs - and keep under control what we call the bullwhip effect!

Third Step in the Game - Wholesaler

Ok. The wholesaler also gets what was ordered two periods ago, used first of all to cover any old shortages to his customer. The wholesaler has to deliver to the retailer, the closest stakeholder to the customer in this game.

When the wholesaler as a manager checks its incoming orders of the retailer, he will have a look at the stock situation in the warehouse, and check what arriving to the warehouse in the actual period. Both - the old stock plus the new incoming goods- will be delivered to the retailer within this actual period, if such quantities are needed. But only, if the old shortages plus the new incoming orders of the retailer are less or equal the actual stock and the incoming goods of the wholesaler. The wholesaler shall be happy, since he has no fees to pay because of out of stock situations.

This - of course - is also valid for the brewery, the distributor and the retailer.

Last Step in the Game - Retailer

Last step? First step? Fourth step or maybe second step? In the end, it's just a point of view. If you assume the customer as first step, it would be step number 2. If you see the brewery as first step, the retailer is step number 4. And if you see the decision making within the game, it is the first or the last step within the game.

No matter what step we assume: The retailer has the great great opportunity that the orders of the customers directly come into his store. The retailer is the first one who can see changes within the markets. The retailer can use this information as an huge advantage if you play this game against each other. On the other sider, the retailer can only serve the end customer in a good way if he gets beer from the other players in the supply chain.

Have a look at the supply chain reality. Pretty often the stakeholders try to work together as transparent as possible, by using electronic interfaces. Sometimes all stakeholder companies belong to a single holding. This means, the actors do not play against each other.

They play as a team to reduce the costs along the entire supply chain. Within the beergame, this are costs for storage and costs for out of stock situations. That's the real challenge within this game, since this is what matters, because different supply chains compete against each other every day and fight for customers.







Within this version of the beergame, you may play: