Web-Based Beer Game Exercise

The Web-based beer game is an exercise that demonstrates supply channel dynamics. Simulates the flow of material and information in a simplified channel of beer production and distribution, focusing on the linkages between a beer manufacturer, its distributors, a wholesaler, and a retailer. Students are organized into teams of four, each assigned to place orders and manage inventory for one firm in the channel. In this simplified channel, orders are the only information allowed to flow among channel participants. The 90-minute exercise is played on a web-based computer simulation tool developed at the Harvard Business School. The program has a parameter page that allows the instructor to easily vary information and transportation lead times, information availability, demand, and so on. The instructor can work with students to understand the nature of the problems they experience, identify the causes, and discuss possible remedies.