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Cash Beer Game

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  • Shang, Kevin

Abstract

This article introduces a new online simulation game called Cash Beer Game, which is an augmented version of the standard Beer Game by including cash flows. In addition to the inventory ordering and shipping activities, each player pays cash for the ordered inventory to her upstream partner and receives cash from her downstream partner. The goal of this game is to explain the interactions between material, information, and financial flows in a supply chain and help students understand the impact of financial flows on the inventory decision. The resulting bullwhip effect can be compared between teams and with that of the standard Beer Game for the same team.

Suggested Citation

  • Shang, Kevin, 2019. "Cash Beer Game," Foundations and Trends(R) in Technology, Information and Operations Management, now publishers, vol. 12(2-3), pages 173-188, March.
    • Handle: RePEc:now:fnttom:0200000088
    DOI: 10.1561/0200000088
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    References listed on IDEAS

    as
    1. Terry A. Taylor & Erica L. Plambeck, 2007. "Simple Relational Contracts to Motivate Capacity Investment: Price Only vs. Price and Quantity," Manufacturing & Service Operations Management, INFORMS, vol. 9(1), pages 94-113, January.
    2. Gérard P. Cachon & Martin A. Lariviere, 2001. "Contracting to Assure Supply: How to Share Demand Forecasts in a Supply Chain," Management Science, INFORMS, vol. 47(5), pages 629-646, May.
    3. Helper, Susan, 1991. "Strategy and Irreversibility in Supplier Relations: The Case of the U.S. Automobile Industry," Business History Review, Cambridge University Press, vol. 65(4), pages 781-824, January.
    4. Brian Tomlin, 2003. "Capacity Investments in Supply Chains: Sharing the Gain Rather Than Sharing the Pain," Manufacturing & Service Operations Management, INFORMS, vol. 5(4), pages 317-333, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Risk management; Hedging; Operational risk; Supply chain finance;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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