The Bullwhip Effect
Experience how small demand changes create massive order amplifications across a supply chain. A real-time multiplayer classroom simulation.
What You'll Learn
Beer Game concepts
Demand Amplification
Small fluctuations in customer demand get amplified as orders move upstream.
Overreaction Trap
Panic ordering when inventory drops creates excess stock — then cost spikes.
Order Smoothing
The optimal strategy: order close to what you received, resist overreacting.
📖 Named after: The classic Beer Distribution Game developed at MIT Sloan School of Management by Jay Forrester in the 1960s.
Supply Chain Structure
Orders flow upstream → Goods flow downstreamThe Bullwhip Effect: Customer demand variance of ±2 units can cause Factory order variance of ±40 units — a 20× amplification. Each role you play amplifies the distortion further upstream.