Beer Game Results 1 Muddy Charles Inventory 150 retailer retailer 100 50 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 -50 -100 -150 2 Muddy Charles Inventory 150 distributor distributor 100 50 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 -50 -100 -150 3 Muddy Charles Inventory 150 wholesaler wholesaler 100 50 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 -50 -100 -150 4 Muddy Charles Inventory 150 factory factory 100 50 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 -50 -100 -150 5 Muddy Charles Inventory --- total cost = $3601 150 retailer wholesaler distributor 100 factory 50 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 -50 -100 -150 6 Muddy Charles retailer orders 40 retailer 35 30 25 20 15 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 7 Muddy Charles wholesaler orders wholesaler 40 wholesaler 35 30 25 20 15 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 8 Muddy Charles distributor orders distributor 40 distributor 35 30 25 20 15 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 9 Muddy Charles factory orders factory 40 35 30 25 20 factory 15 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 10 Muddy Charles orders 40 35 30 25 retailer wholesaler 20 distributor factory 15 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 11 75 Ali baba retailer inventory 60 45 30 15 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 retailer -15 -30 -45 -60 -75 12 75 Ali baba wholesaler inventory 60 45 30 15 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 wholesaler -15 -30 -45 -60 -75 13 75 Ali baba distributor inventory 60 45 30 15 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 distributor -15 -30 -45 -60 -75 14 75 Ali baba factory inventory 60 45 30 15 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 factory -15 -30 -45 -60 -75 15 Ali Baba Amazon Inventory -- total cost = $2219 75 60 45 30 15 retailer wholesaler 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 distributor factory -15 -30 -45 -60 -75 16 Ali baba retailer orders 50 45 40 35 30 25 retailer 20 15 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 17 Ali baba wholesaler orders 50 45 40 35 30 25 wholesaler 20 15 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 18 Ali baba distributor orders 50 45 40 35 30 25 distributor 20 15 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 19 Ali baba factory orders 50 45 40 35 30 25 factory 20 15 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 20 Ali Baba Amazon Orders 50 45 40 35 30 retailer wholesaler 25 distributor factory 20 15 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 21 22 23 24 25 26 27 Project Ideas 28 Strategies • Work in teams – we might enlist an LGO student(s) • You propose your own project – Research – Start-up – Other connections • We propose project – Not necessarily clear cut – You are still the “entrepreneur” – Take it as far as you want 29 Air Liquide • Explore feasibility of delivering Oxygen to hospitals in developing countries – Choice of technology – Design of supply chain; make-buy choices – Business model, including financing – Cameroon and Ghana are possible target markets 30 ARTI- Tanzania • How to improve the operation of new production line for Ag-waste charcoal briquettes – Grinder – Mixer – Extruder • Likely to require consideration of upstream and downstream operations • D-Lab scale-up partner 31 WeCycler • As the business continues to expand, a project could: – Look at how to achieve more efficient routing of vehicles – Examine how to improve customer retention • D-Lab scale-up partner 32 Ghonsla • Examine transportation of product (insulation panels) from manufacturing facility to sales region • Focus on cost and time • Likely to require consideration of upstream and downstream operations, which are linked by the transportation • D-Lab scale-up partner 33 Organic Waste processing with BSF • Mapping of supply chain • Make – Buy choices • Cost modeling 34 MIT OpenCourseWare http://ocw.mit.edu 15.772J / EC.733J D-Lab: Supply Chains Fall 2014 For information about citing these materials or our Terms of Use, visit: http://ocw.mit.edu/terms.