This team-based simulation portrays a supply chain with four links: factory, distributor, wholesaler, or retailer. Each player manages one link in the chain. At each stage of the distribution process, participants face order processing challenges and shipping lags as well as central stock management problems.
In this simulation, participants experience the effects of a supply chain dynamic called the “bullwhip” effect. Small changes in customer demand cause increasing oscillations in ordering patterns and inventory levels moving down the supply chain away from the customer. Participants play one of four roles in a root beer supply chain: factory, distributor, wholesaler, or retailer. In each simulated week, they must examine inventory, anticipate demand, and send orders to the adjacent connection in the supply chain. Each participant attempts to minimize inventory carrying costs while avoiding costly inventory shortages. Participants must make rapid ordering decisions while dealing with limited information, a lack of demand visibility, and shipping delays. Different supply chain scenarios can be configured for participants to help them explore the root causes of the bullwhip effect while enabling discussion of techniques for controlling it.