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.
- How Amazon Receives Your Inventory.
- How Apple’s Inventory Management is So Lean.
- Inventory Management.
- Lean, Kaizen, and Continuous Improvement.
- Lean Manufacturing – Lean Factory Tour.
- What Is Inventory Management?