Here's basically how it works:
There is a factory that "sells" beer to a wholesaler who sells beer to a distributor who sells beer to a retailer who sells beer to a consumer. A pair of students represents each level of the supply chain and has a warehouse in which to store beer. Consumer demand is simulated by turning cards over, much like the game of Sorry. Each pair of students must then order beer to keep up with demand of the supply level below them. The trick is that it takes 4 weeks for your order to arrive (assuming your supplier has stock). Inventory is bad, backlog (unfilled orders due to lack of stock) is worse. Add the two together to get your operating cost.
Overall, there were 6 "supply chains" in the room. Everyone threw in a dollar. The team/supply chain that had the least operating cost won.
The game did a very nice job of simulating the reaction, over-reaction, and oscillations that supply chains face everyday as demand changes. It was interesting to see that a change in demand of just 4 cases sometimes caused orders or backlogs of 50 to 100.
When it was all said and done, our team "St. Anky's Beer" came in 2nd. Not to bad for "freshman". By the end of the 4 hour session, we were ready for some beer, but given this week's work load, it didn't happen. More on the work load to come... all I can say now is 'picture a step function'.
