THE BEER GAME
1
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
2
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
3
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.
4
ESSENTIAL RULES - 2

Values of game chips as below;



BLACK
WHITE
BLUE



5 beers
1 beer
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.
5
THE BOARD
6
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
1. Decide which team members will play the
positions of Retailer, Wholesaler, Distributor, and
Factory.
2. Pick a name for your team’s beer.
3. Write on your Recording Form the name of your
team and your position.
4. The game will continue week-by-week for 35
weeks.
8
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
9