Beer Game

Analysis

PRESENTED BY
GROUP 4
SECTION B

Strategy
followed

Maintain a current inventory

of around 10 cases of beer
per week, this value included
the inventory present along
with the incoming inventory
for that week
The value of 10 was decided
based on the trial rounds
that took place
Whenever an order was
placed, it was +1/-1 added
to the Incoming Order and
decreased or increased
based on the most recent 34 orders, to prevent both
stockouts and excess stock.

Observations
When the actual game
started, for an initial period
of 10-12 weeks we couldnt
maintain this due to
uncertainty of the values of
the orders (Period of
Uncertainty)
Post that period, we
followed the strategy to
keep inventory level to a
certain fixed limit (Period
of Stabilization)
In the case of a spike (very
high order) this strategy
would have failed to meet
the demand

Game Statistics

Total Cost Curve

Total Cost
Retailer

Wholesaler

Distributor

Factory

400

350

300

250
Total Cost
200

150

100

50

0
1

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

Current Inventory level

Wholesaler

Retailer
18
16
14
12
10
8
6
4
2
0

10

15

20

25

30

35

10

15

20

25

30

35

25

30

35

Factory

Distributor
30

25

25

20

20

15

15
10

10

5
0

10

15

20

25

30

35

10

15

20

Orders Placed
Orders Placed
customer

Retailer

Wholesaler

Distributor

Factory

9
8
7
6
5
4
3
2
1
0
1

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Thank You