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Beer Game - Essay Example

The logistic challenges are present in the requirement of stationary pens and papers, computers in the university. The rise in demand of the stationary items as well as computers require the suppliers to provide more number of stationary items and computers as required during the course of the university. The increase in the number of students and increase in the number of courses conducted by the university led to the requirement of more number of stationary items like pen and paper and also educational systems like computers. The logistic challenge that has been faced is that the procurement and supply of increased number of items are needed to occur through four different stages of factory, distributor, wholesaler and the retailer. The level of available inventory in each of the four different stages is a point of concern for the distributor, wholesaler and the retailer which comprises of the distribution system. The level of inventory against the level of demand is the most crucial part in dealing with the delay in the distribution of the items required....
The supply of the stationary items like pen and the paper, computers is delayed with the increase in the intermediate players starting from the retailers, wholesalers and the distributors. The logistic challenge is even more when the suppliers, wholesalers and the dealers run out of stock. This increases the back order cost of the distribution system. These are the wholesome challenges in logistics that are faced due to the increase

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in demand of stationary items and computers in the university. Bullwhip effect The Bullwhip effect is an effect in the logistics and distribution system which is observed in the forecasting of supply of goods in the distribution channel. The bull-whip effect shows that the changes in the level of inventory undergo a greater change due to the change in the level of demand of goods. In the case of rising demand of stationary items like pen and paper, computers there would be bull-whip effect in the distribution system for supplying the goods to the university. A change in demand of the goods would require the retailer, wholesaler and the distributor to maintain a higher level of inventory as compared to the demand in order to keep an allowance for the delay in the distribution system and to keep the inventory cost and the back order cost under control. Thus the bull whip effect gives rise to greater change in the level of inventory in response to a change in the level of demand of the stationary items and the computer. Conclusion The challenges in the logistics and distribution system for supply of stationary items and computer due to change in the pattern of demand could be explained by the web-based beer game. The challenges
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The understanding of the web-based beer game could be applied in situations of logistic challenges and the outcome of the decisions taken in order to solve the logistic challenges which could be analyzed. The beer game involves four different components in the distribution system mainly the factory, wholesaler, distributor and retailer. …
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