Chapter 7: Supplement
description
Transcript of Chapter 7: Supplement
![Page 1: Chapter 7: Supplement](https://reader036.fdocuments.net/reader036/viewer/2022062309/56813c08550346895da56b93/html5/thumbnails/1.jpg)
Copyright 2013 John Wiley & Sons, Inc.
Chapter 7: Supplement
The Beer Game
![Page 2: Chapter 7: Supplement](https://reader036.fdocuments.net/reader036/viewer/2022062309/56813c08550346895da56b93/html5/thumbnails/2.jpg)
7A-2
The Beer Game Board and Initial Condition
Figure 7A.1
![Page 3: Chapter 7: Supplement](https://reader036.fdocuments.net/reader036/viewer/2022062309/56813c08550346895da56b93/html5/thumbnails/3.jpg)
7A-3
The Beer Game
• Supply chain consists of four stages1. Factory2. Wholesaler3. Distributor4. Retailer
• Each stage is required to manage its inventory level through the placement of orders with its upstream supplier
![Page 4: Chapter 7: Supplement](https://reader036.fdocuments.net/reader036/viewer/2022062309/56813c08550346895da56b93/html5/thumbnails/4.jpg)
7A-4
Rules
• There is a two-week delay between the retailer, wholesaler, and distributor
• Production orders at the factory are available to ship three weeks after the production request
• Objective is to minimize the sum of your total weekly costs
• Only upstream communication are orders
![Page 5: Chapter 7: Supplement](https://reader036.fdocuments.net/reader036/viewer/2022062309/56813c08550346895da56b93/html5/thumbnails/5.jpg)
7A-5
Costs
• Weekly costs have two components1. Inventory cost
2. Backlog cost
• Weekly inventory cost is $0.50/keg of beer in inventory at end of week
• Backlog cost is $1.00/keg on backlog at the end of the week
![Page 6: Chapter 7: Supplement](https://reader036.fdocuments.net/reader036/viewer/2022062309/56813c08550346895da56b93/html5/thumbnails/6.jpg)
7A-6
Initial Conditions
• Demand at the retailer stage have been stable at four kegs per week– Every order in supply chain has been four kegs
• Each stage has maintained an inventory of 12 kegs
• Warmer weather is expected to raise demand• Upcoming promotions are also expected to
raise demand
![Page 7: Chapter 7: Supplement](https://reader036.fdocuments.net/reader036/viewer/2022062309/56813c08550346895da56b93/html5/thumbnails/7.jpg)
7A-7
Playing the Game
• Will be assigned to one of the four stages
• During play, will perform the five steps shown on the following slides
• Must be completed in order shown• Each stage of supply chain must
complete the tasks simultaneously• Only the final task requires a decision
![Page 8: Chapter 7: Supplement](https://reader036.fdocuments.net/reader036/viewer/2022062309/56813c08550346895da56b93/html5/thumbnails/8.jpg)
7A-8
Step 1
![Page 9: Chapter 7: Supplement](https://reader036.fdocuments.net/reader036/viewer/2022062309/56813c08550346895da56b93/html5/thumbnails/9.jpg)
7A-9
Step 2
![Page 10: Chapter 7: Supplement](https://reader036.fdocuments.net/reader036/viewer/2022062309/56813c08550346895da56b93/html5/thumbnails/10.jpg)
7A-10
Step 3
![Page 11: Chapter 7: Supplement](https://reader036.fdocuments.net/reader036/viewer/2022062309/56813c08550346895da56b93/html5/thumbnails/11.jpg)
7A-11
Top of Data Sheet
Figure 7SA.2
![Page 12: Chapter 7: Supplement](https://reader036.fdocuments.net/reader036/viewer/2022062309/56813c08550346895da56b93/html5/thumbnails/12.jpg)
7A-12
Steps 4–6