The Princeton beer game

This game is an adaptation of the famous "beer game" developed by Jay Forrester at MIT in the 1950's. This version is
designed to be played in class, preferably at long desks or tables. Unlike the classic beer game, this version may be played
with any number of intermediate echelons. Students simply string themselves into chains of at least four players (more
than eight becomes cumbersome).
Instructions:

Layout: See layout tab. The game is run linearly from one player to the next. Beer flows
to the left, and paper flows to the right. Between every pair of players is a designated
"midpoint."

Each player starts with 12 units of beer in inventory. Above the inventory is an intial
order, face up, for four cases of beer.

The retail player has to pick up the first index card on his pile and place this in front of
him. To his left is the stack of future customer orders, face down.

All other players start with a sheet of paper with an order for four units of beer, sitting just above his inventory.

The factory maintains an infinite supply of beer in its inventory. A single player should play the last position next to the
factory, as well as the factory itself. As players join the game, the factory position should be filled in last (use this for the
late-comers). If the factory is not filled, the echelon next to the factory will play this role.

Inventory costs $.50 per week. Backordered demands cost $2.00 per week.

All players must move in tandem. Do not start a step until it is announced.
 The Princeton beer game

Week Ending inventory Back ordered Order amount Name:

1
2 Team name
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4 Echelon
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Instructions:
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9 Step 1:
10 State: You should have a sheet of paper containing an
11 order (initially four), and an inventory of beer (initially
12 twelve) sitting in front of you. Put the pennies closest to
13 you, and the paper above the pennies.
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Action: Look at the order for beer. Try to satisfy the
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order from your inventory. Move the beer to a point
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midway to the player to your left. If you have enough
17 beer, discard the order. If not, cross out the order and
18 replace it with the unfilled demand. This is your
19 backordered demand. Record your ending inventory (if
20 any) or your backordered demand (if any). You cannot
21 have both inventory left over, and backordered demand.
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23
Step 2:
Make order: write how many units of beer you want to
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replenish your inventory, and place it at a point midway to
25 the player to your right (reuse the order slip that was
26 passed to you, where possible; just cross out previous
27 orders). Place the paper immediately to your right above
28 the pennies that are moving to you. Record your order.
29
30 Step 3:
31
Reach to your left and put your hand on the order
coming to you, and simultaneously reach to your right and
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put your hand on the pennies coming to you. Then, at the
33
same time, pull both hands back to you, putting the new
34 order face up in front of you (above the pennies) and
35 adding the new pennies to your inventory.
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© Trustees of Princeton University 1999-2007

 Middle echelons

Initial position: Factory

Initial board layout.

4 Midpoint Midpoint Midpoint
4 4 4

After step 1: Factory

Read order on sheet of paper. Move this

Midpoint Midpoint Midpoint many cases of beer to the left. If the
order can be filled from inventory, turn
paper over. If not, cross out the order and
write in the unfilled portion of the order.
This is your order backlog.

After step 2: Factory

Write out a new order and place it in midpoint

to the right.
Midpoint Midpoint Midpoint

5 3 6

Step 3: Factory

In one move, reach to your left and pull the

order from the midpoint onto your board
Midpoint Midpoint Midpoint with your left hand. With your right, reach
to the right and pull the beer in the midpoint
5 3 6
onto your area.

After step 3: Factory

Retailer flips up a new card.

4 5 3 6
Midpoint Midpoint Midpoint