The Beer Game: An Interactive Tutorial
Richard J. Penlesky, Dept. of Bus. Admin. & Economics, Carroll College, 100 N. East Ave., Waukesha, WI 53186, 262-951-3023
Mark Treleven, Dept. of Mgt., Mktng. & Logistics, John Carroll Univ., 20700 N. Park Blvd., Univ. Heights, OH 44118, 216-397-3035
Charles Watts, Dept. of Mgt., Mktng. & Logistics, John Carroll Univ., 20700 N. Park Blvd., Univ. Heights, OH 44118, 216-397-4448
Abstract: While the Beer Game is familiar to many faculty, particularly those who teach in the fields of Operations Management
and Supply Chain Management, not all faculty are sufficiently familiar with the game to use it in their classes. The purposes of
this multi-session presentation are to provide insight into the administration and learning outcomes of the Beer Game and to
provide tools that can facilitate its implementation.
INTRODUCTION
The Beer Game is an interactive simulation of a multi-stage distribution system. It was developed at MIT over thirty years ago “to
introduce students of management to the concepts of economic dynamics and computer simulation” (Sterman, 1989). It has
engendered renewed interest at the present time due to its effective illustration of the impact of unintended consequences and the
bullwhip effect in supply chains.
Session I: Overview of the Beer Game
This session will begin with a brief discussion of the history and purpose of the Beer Game. Thereafter, game materials will be
distributed and a detailed description of the conduct of the game will be provided. The session will conclude with a question-andanswer period.
While all are invited to attend, this session is designed to meet the needs of individuals with little or no knowledge of the
Beer Game. Each attendee will be given a floppy disk containing game boards, record-keeping Excel templates and, as appropriate,
other game-related materials.
Session II: Playing the Beer Game (Round 1)
During this session, the Beer Game will be played according to its traditional structure and rule set. A brief overview of the conduct
of the game will be provided at the onset of the session. However, it is expected that game participants are familiar with the Beer
Game, either through prior experience or by attending Session I. The primary purposes of the session are to provide first-hand
experience with the administration and conduct of the game and to play as many periods as possible so that the effects of the game
become apparent.
While all are invited to attend, this session is designed to meet the needs of individuals who are familiar with the Beer Game
and would like to actively participate in playing the game. If not received in an earlier session, each attendee will be given a floppy
disk containing game boards, record-keeping Excel templates and, as appropriate, other game-related materials.
Session III: Playing the Beer Game (Round 2)
This session will begin with a presentation and discussion of the results obtained during Session II’s administration of the Beer Game.
A videotape will be shown to compare and contrast these results to those obtained by a group of students at MIT. This will be
followed by a brief discussion of modifications that could be made to improve system performance. Utilizing one of the suggested
modifications, the game will be played a second time so that its effect can be directly assessed.
It is expected that participants in this session are familiar with the Beer Game, either through prior experience or by attending
one of the earlier Beer Game sessions at this meeting. The primary purposes of the session are to discuss the insights and learning
outcomes provided by the Beer Game and to compare and contrast game results across different groups of participants and different
game configurations.
While all are invited to attend, this session is designed to meet the needs of individuals who are very familiar with the
traditional Beer Game and would like to discuss and experience the effect and learning outcomes of alternative configurations of the
game. If not received in an earlier session, each attendee will be given a floppy disk containing game boards, record-keeping Excel
templates and, as appropriate, other game-related materials.
APPENDIX 1. Sample Game Board
APPENDIX 2. Step-by-Step Instructions
APPENDIX 3. Spreadsheet Template
References and Additional Sources of Information
Arizona State University, Instructions for running the Beer Game with large groups can be obtained at
http://www.public.asu.edu/~kirkwood/sysdyn/BGame/BGame.htm
Kyd, Charles W., “Inventory Analysis with System Dynamics,” Lotus Magazine (March 1987): pp. 51-58.
Sterman, John D., A detailed description of the Beer Game can be obtained at http://web.mit.edu/jsterman/www/SDG/beergame.html.
Sterman, John D., “Modeling Managerial Behavior: Misperceptions of Feedback in a Dynamic Decision Making Environment,”
Management Science 35 (1989, 3): pp. 321-339.
Sterman, John D., “Teaching Takes Off: Flight Simulators for Management Education,” OR/MS Today (October 1992): pp. 40-44.
System Dynamics Society, Instructions for obtaining materials for running the Beer Game can be obtained at
http://www.albany.edu/cpr/sds/Beer.htm.