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Supply Chain

A simulation which runs the "Beer Game", an example of the "bullwhip" effect in supply chains with changing demand.

A simulation which runs the "Beer Game", an example of the "bullwhip" effect in supply chains with changing demand.

The chain consists of a manufacturer, distributor, wholesaler, retailer, and customer demand. Each step agents place and attempt to fulfill orders to the next piece of the supply chain.

As demand fluctuates, reactive decision-making in the model quickly demonstrates the shortcomings of decision-making with local information and no global information, as links in the chain fail to deliver, and begin to develop large backlogs and then over-compensate for them.

http://web.mit.edu/jsterman/www/SDG/beergame.html