Beer Game Analysis

Topics: Inventory, Holding cost, Supply chain management Pages: 3 (860 words) Published: March 11, 2012
Name: Shabei Qian
Team #: 15
Position: Retailor

Beer Game Report
1. For the first 3 weeks I just ordered the weekly demand because the demand was low and we had enough inventory. When there was a spike and we had potential stock out, I realized that I needed to hold more safety stock, I just ordered 2*weekly demand for each week. When there was a back order, I ordered the # of back order plus weekly demand. For the first 3 weeks I just ordered the weekly demand because the demand was low and we had enough inventory. When there was a spike and we had potential stock out, I realized that I needed to hold more safety stock, I just ordered 2*weekly demand for each week. When there was a back order, I ordered the # of back order plus weekly demand. Describe how you made the decision each week of how much to order.

2. I was panic when I had back order because the back order cost is high. I kept ordering the amount of back order but actually the income shipment was very low. Eg. The back order was 43, I ordered 50 but there was only 3 inbound. I know the wholesaler had oos too. Start from wk18, the entire supply chain realized that we needed more products so they ordered more and I relieved a little from back order. After 3 weeks I actually had no more back order but the income shipment became bigger and bigger. I stopped ordering from wk24 but the shipment kept coming and the inventory holding cost was very high. I was panic when I had back order because the back order cost is high. I kept ordering the amount of back order but actually the income shipment was very low. Eg. The back order was 43, I ordered 50 but there was only 3 inbound. I know the wholesaler had oos too. Start from wk18, the entire supply chain realized that we needed more products so they ordered more and I relieved a little from back order. After 3 weeks I actually had no more back order but the income shipment became bigger and bigger. I stopped ordering from wk24 but the...
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