Root Beer Game Analysis

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######## The Root beer Game ######## ####### 4/5/12 Overview The Root Beer Game provides participants with an in-depth understanding of the “bullwhip” effect. In production management; the bullwhip effect occurs as orders are relayed from retailers, to wholesalers, and then to manufacturers with fluctuations increasing at each step in the sequence. The bullwhip causes fluctuations in the supply chain which then increase the cost associated with inventory, transportation, shipping, and receiving while decreasing customer service and profitability (compounding error). In the Root Beer Game, we were randomly assigned to be one of the following; Factory, distributer, wholesaler, or retailer. The retailer would receive an order from the customer, we then in turn place an order for a specific amount to the wholesaler, who places the order with the distributor, who then places an order with the factory. All the participants have a mutual objective: reduce the cost associated with the backlog which could put you out of business, but at the same time minimize inventory shortages which could also put you out of business. Before starting the game, the inability to keep the lines of communication open definitely hindered our effectiveness. This caused a huge problem for us even though during the first game the customer demand stayed the same. My experience and frustrations In game one; I was assigned the role of the retailer. At first, I was a bit unsure on exactly how the game was played. I received an order from my customers (50,000 cases), placed my order and waited for a response. After a few minutes I would receive a delivery for that amount. After that I received an order of (100,000cases). After a few minutes I received only 50,000 cases. I did not remember that it takes several weeks for new orders to arrive. One tool that I overlooked in the beginning was

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