Jun 242017
 
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Bullwhip Effect and Beer Game

Unexpected changes in demand patterns will continue to escalate further up the supply chain.    Problems tend to escalate in supply chains where communication is minimal between supply nodes.  A small wave in the middle of the ocean may end up as a tidal wave near the shore.  The bullwhip effect can best be described using the “Beer Game.” It is an exercise that showcases the problems that arise in a company with minimal communication in the supply chain.  A quick 15 minute game graphically represents the variable opportunities that can be found in the supply chain.  Feel free to e-mail me if you would like to know how the beer game could be used as a training tool at your company.    

Causes of the Bullwhip Effect:

  • Poor communication throughout the supply chain

  • Poor ordering practices

  • Poor reaction to backlogs

Inventory Management Training.

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