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beer game

Also known as the beer distribution game. A team-oriented simulation in which participant teams represent the typical supply chain nodes of manufacturer, distributor, wholesaler and retailer and place orders with their respective partners to meet inventory and order backlog objectives.

The beer game is often used to help illustrate the bullwhip effect, and assigns cost penalties to excess inventory and order backlogs, with the team with the lowest cumulative costs declared as the winner.


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