Overview:
The main objective of the Supply chain Beer game is to analyze two important aspects of the supply chain, the total cost of the supply chain and orders placed in the supply chain.
Higher costs naturally have an impact on the profitability of the supply chain and higher-order variance in the supply chain result in higher magnitude orders being placed. The higher inventory stock at different stages in the supply chain again increases the costs, affecting the profitability negatively.
A. Supply Chain Costs :
Supply chain costs, though inevitable, are a pain for any supply chain manager. Shortage, excess holding, and obsolescence are inevitable in any supply chain. But the realization that the customer is not ready to incur these costs due to the suboptimal performance of the different SC entities like retailers, wholesalers, distributors, manufacturers on the distribution side is very revealing and new information to the students.
B. On variance Amplification of orders placed and Bullwhip Effect :
Analyze the orders paled i.e mean and standard deviation of orders placed by the downstream entities on the upstream entities right from the retailer to wholesaler, wholesaler to the distributor, distributor to the manufacturer, and finally manufacturer to the supplier, it is interesting to study “Bullwhip Effect” on Supply Chain Cost that irrespective of the supply chain practices, there was an amplification of the orders placed and amplification of the variance of the orders placed – this is the phenomenon, most commonly referred to as Bullwhip Effect.
Target Audience:
Professionals, Managers, Supervisors and Leaders from Supply chain, Logistics companies, SMEs, Retail chains, Warehousing and Transport companies.
Contents:
During this workshop we are going to discuss the important points such as :-
- Incorrect forecasts,
- Batching and pricing phenomenon,
- Rational thinking of behalf of the players and
- Selfish behavior of the entities to optimize their costs compromising the overall supply chain profitability.
- Also, we cover risk pooling aspects. Risk Pooling of the downstream entities like retailers, wholesalers, distributors, etc, by centralizing the inventories, instead of having decentralized inventories, can reduce the variance amplification in the orders placed. We are going to see a demo of how risk pooling and Information sharing can reduce the total cost of Supply Chains.
There are no reviews yet.