MENTAL MODEL · M1762

Beer Game

BusinessHigh supportManagement

Included

Version 1.0.0 · Updated 2026-07-30

CORE DEFINITION

A classic strategy game developed by MIT. It demonstrates how small fluctuations in consumer demand, due to information delays, lack of communication, and bounded rationality, are amplified through the supply chain (retailer, wholesaler, manufacturer), leading to huge inventory backlogs or shortages (the bullwhip effect).

SCAFFOLDING EFFECT

psychology

Reduce cognitive load

- Systemic attribution: When things are a mess, don't blame specific people ("because they are stupid"). In this game, everyone is smart and rational, but the structure determines that they will inevitably mess up. Structure influences behavior.

anchor

Anchor fast decisions

The Beer Game is a supply chain simulation: from end customers to the factory, each link replenishes based only on downstream orders. Small demand fluctuations are amplified through order transmission, causing severe inventory oscillations (the bullwhip effect). It illustrates that local optimization without global information can harm the system.

MINIMUM ACTION

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Practice this model in one real situation:

Divide into groups to play the roles of supply chain nodes
each node orders upward based only on received orders and inventory
record inventory and shortages at each level
review the sources of fluctuations
try sharing demand information to smooth the flow.

Check to track your progress (stored locally)

Learning progress0%

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Source support: Explicit

link
en.wikipedia.orghttps://en.wikipedia.org/wiki/Beer_gameZH · Explicit
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