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Decision making in the beer game and supply chain performance
The beer game has been used to emphasize, investigate, and analyze supply chain inefficiencies as well as the effect of decision makers’ biases. This paper investigates the short- and long-run performance in the beer distribution game by analyzing Sterman’s (Manag Sci 35(3): 321–339, 1989 ) model th...
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| Published in: | Operations management research 2013-12, Vol.6 (3-4), p.119-126 |
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| Main Authors: | , , |
| Format: | Article |
| Language: | English |
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| cited_by | cdi_FETCH-LOGICAL-c471t-c7353132a1958c4cb51a59eb59302cd8fc60c21ca3dbf73b7bb4928e131e5c273 |
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| cites | cdi_FETCH-LOGICAL-c471t-c7353132a1958c4cb51a59eb59302cd8fc60c21ca3dbf73b7bb4928e131e5c273 |
| container_end_page | 126 |
| container_issue | 3-4 |
| container_start_page | 119 |
| container_title | Operations management research |
| container_volume | 6 |
| creator | Macdonald, John R. Frommer, Ian D. Karaesmen, Itir Z. |
| description | The beer game has been used to emphasize, investigate, and analyze supply chain inefficiencies as well as the effect of decision makers’ biases. This paper investigates the short- and long-run performance in the beer distribution game by analyzing Sterman’s (Manag Sci 35(3): 321–339,
1989
) model that simulates decision-making. In this model, the system may have chaotic behavior depending on the heuristics used by decision makers. We investigate how quickly the system reaches a steady state (if at all). It is known that ignoring supply line (outstanding orders) leads to the bullwhip effect in experimental research. Among other results, we show that the short-term performance of a supply chain is not a predictor of the long-term performance even when decision makers fully recognize outstanding orders. Results of the simulation and practical implications are discussed. |
| doi_str_mv | 10.1007/s12063-013-0083-4 |
| format | article |
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1989
) model that simulates decision-making. In this model, the system may have chaotic behavior depending on the heuristics used by decision makers. We investigate how quickly the system reaches a steady state (if at all). It is known that ignoring supply line (outstanding orders) leads to the bullwhip effect in experimental research. Among other results, we show that the short-term performance of a supply chain is not a predictor of the long-term performance even when decision makers fully recognize outstanding orders. Results of the simulation and practical implications are discussed.</description><identifier>ISSN: 1936-9735</identifier><identifier>EISSN: 1936-9743</identifier><identifier>DOI: 10.1007/s12063-013-0083-4</identifier><language>eng</language><publisher>Boston: Springer US</publisher><subject>Analysis ; Beer ; Behavior ; Business and Management ; Chaos theory ; Decision making ; Decision making models ; Engineering Economics ; Game theory ; Industrial and Production Engineering ; Innovation/Technology Management ; Inventory ; Logistics ; Management ; Marketing ; Operations Management ; Operations research ; Operations Research/Decision Theory ; Organization ; Simulation ; Studies ; Supply chain management ; Supply chains</subject><ispartof>Operations management research, 2013-12, Vol.6 (3-4), p.119-126</ispartof><rights>Springer Science+Business Media New York 2013</rights><rights>COPYRIGHT 2013 Springer</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c471t-c7353132a1958c4cb51a59eb59302cd8fc60c21ca3dbf73b7bb4928e131e5c273</citedby><cites>FETCH-LOGICAL-c471t-c7353132a1958c4cb51a59eb59302cd8fc60c21ca3dbf73b7bb4928e131e5c273</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://www.proquest.com/docview/1470244841/fulltextPDF?pq-origsite=primo$$EPDF$$P50$$Gproquest$$H</linktopdf><linktohtml>$$Uhttps://www.proquest.com/docview/1470244841?pq-origsite=primo$$EHTML$$P50$$Gproquest$$H</linktohtml><link.rule.ids>314,776,780,11669,27903,27904,36039,36040,44342,74641</link.rule.ids></links><search><creatorcontrib>Macdonald, John R.</creatorcontrib><creatorcontrib>Frommer, Ian D.</creatorcontrib><creatorcontrib>Karaesmen, Itir Z.</creatorcontrib><title>Decision making in the beer game and supply chain performance</title><title>Operations management research</title><addtitle>Oper Manag Res</addtitle><description>The beer game has been used to emphasize, investigate, and analyze supply chain inefficiencies as well as the effect of decision makers’ biases. This paper investigates the short- and long-run performance in the beer distribution game by analyzing Sterman’s (Manag Sci 35(3): 321–339,
1989
) model that simulates decision-making. In this model, the system may have chaotic behavior depending on the heuristics used by decision makers. We investigate how quickly the system reaches a steady state (if at all). It is known that ignoring supply line (outstanding orders) leads to the bullwhip effect in experimental research. Among other results, we show that the short-term performance of a supply chain is not a predictor of the long-term performance even when decision makers fully recognize outstanding orders. 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This paper investigates the short- and long-run performance in the beer distribution game by analyzing Sterman’s (Manag Sci 35(3): 321–339,
1989
) model that simulates decision-making. In this model, the system may have chaotic behavior depending on the heuristics used by decision makers. We investigate how quickly the system reaches a steady state (if at all). It is known that ignoring supply line (outstanding orders) leads to the bullwhip effect in experimental research. Among other results, we show that the short-term performance of a supply chain is not a predictor of the long-term performance even when decision makers fully recognize outstanding orders. Results of the simulation and practical implications are discussed.</abstract><cop>Boston</cop><pub>Springer US</pub><doi>10.1007/s12063-013-0083-4</doi><tpages>8</tpages></addata></record> |
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| language | eng |
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| source | ABI/INFORM global; Springer Nature |
| subjects | Analysis Beer Behavior Business and Management Chaos theory Decision making Decision making models Engineering Economics Game theory Industrial and Production Engineering Innovation/Technology Management Inventory Logistics Management Marketing Operations Management Operations research Operations Research/Decision Theory Organization Simulation Studies Supply chain management Supply chains |
| title | Decision making in the beer game and supply chain performance |
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