I need to write an executive summary for the \"Beer Game\" (supply chain managem
ID: 392737 • Letter: I
Question
I need to write an executive summary for the "Beer Game" (supply chain management). Please offer me some guidance, examples, suggestions,template, and or layout for how I should approach the executive summary. I am not really sure how to begin.
There were 3 games played at 36 weeks each. Involved was the factory- distributor- wholesaler-retailer.
game 1: shipping delay- 2 weeks. information delay- 2 weeks
game 2: shipping delay - 1 week. information delay - 1 week
game 3: shipping delay- 1 week. information delay- 0 week
Week 1
Total Cost: 46,123.5
Factory Cost: 12,317
Distributor Cost: 22,714
Wholesaler Cost: 10,188
Retailer Cost: 904.5
Week 2
Total Cost: 138,483
Factory Cost: 43,728
Distributor Cost: 92,517.5
Wholesaler Cost: 2,050.5
Retailer Cost: 187
Week 3
Total Cost: 651.5
Factory Cost: 197
Distributor Cost: 151.5
Wholesale Cost: 151.5
Retailer Cost: 151.5
Explanation / Answer
ANSWER-
EXECUTIVE SUMMARY
(BEER GAME)
INTRODUCTION-
BEER GAME Is introduced at MIT in 1960's which mainly focuses on the minimization of the cost(invetrory cost & distribution cost etc) & max the overall profit. it is kind of a simulation game which makes the student to understand distribution of beer product from production to consumption. BEER game involves four teams -
The beer game works in reverse cycle means customer oders the beer then-
retailer places the order to wholeseller with time lag in weeks
wholeseller place the order to distributor with the time lag in weeks
distributer place the order to brewery/factory
at last factor starts production.
this beer game take almost 36 weeks for each game played to from production to end user. the main aim of this beer game is to incur low cost as much as possible.
* STEPS TO PROCEED IN BEER GAME-
1- NEW DELIVERY
CURRENT STOCK = INVENTORY + LAST WEEK'S INVENTORY
2- NEW ORDER/INCOMING ORDER-
SHIPPING ORDER = NEW ORDER + LAST WEEK'S ORDER
3- HOW TO PREP FOR DELIVERY-
If the company has the amout of order more then the avilable order then company has to ship the whatever available stock & remnaing amount would be in back order.
if the company has less amount of new order than the available stock then company fulfill the new order & there would be zero back order.
CONCLUSION- "ACCORDING TO THIS GAME, THAT TEAM WOULD WIN WHICH WOULD HAVE THE LOWEST TOTAL COST AT THE END."
HOPE, above answers is written to guide you in your executive summary for the beer report.hope this would help you.good luck.