ABSTRACT
Playing “The Beer Game” An example of this phenomenon is made clear in an exercise called “The Beer Game” as described in The Fifth Discipline by Peter Senge. This is a board game using poker chips signifying inventory, preprinted playing cards indicating the fluctuations in demand at the retailer, and small forms on which the players write their orders to their suppliers. The scenario is that a retailer who sells beer is served by a distributor. The distributor is served by a warehouse, which is served by the manufacturer. Therefore, there are only four elements in this simple supply chain. There is a four-day lead time between each of the elements.
