ATILIM UNIVERSITY DEPARTMENT OF INDUSTRIAL ENGINEERING IE 306- SUPPLY CHAIN MODELING I DUE: 27.05.

11 Friday 17:00 BEER GAME-BULLWHIP EFFECT RISK POOLING Your group task is to investigate the bullwhip effect through the MIT based BEER GAME. The game CD was previously distributed (Thank-you very much Emir ). With your group members, you are required to prepare a Formal report (Not exceeding 10 pages; coverage,graphs, tables included) on the scenarios you develop, to understand and explain the bullwhip effect across the levels of the supply chain. Preliminary Work (At most 1 page) Define the bullwhip effect and state the importance of it in the supply chain in your own words. State significant measures to mitigate this effect and explain them briefly in your own words. What is risk pooling? When is it preferable, how can you create a risk pooling environment? How does centralization-decentralization affect risk pooling? Timespan considerations etc. Do not plagiarize, state all articles, books and internet references used. Game Work The aim is to practice different methods to minimize the bullwhip effect and attain the least cost across the network given lead time and customer demand variability. You may assume several roles within the context of the game (retailer, factory etc..) and use different options defined by the game to explain the consequences of important contributors of the bullwhip effect such as lead time, centralized vs. decentralized control, access to global information and different demand settings (Periodic vs. Continuous). You should state all underlying assumptions and settings used in the game. The group members are required to construct at least 4 different scenarios to compare the effect of underlying parameters and roles assumed (which level is effected the most) on the bull-whip effect. Discuss the potential impact (oscilliation and amplification) of your scenarios on the whole supply chain (using a global view).

 You may use the graphs that are available within the game or construct your own illustrations. Comment on the figures that you have utilized. Summarize and state general observations about the scenarios you have constructed.