Beer Game

| Coordinated | Uncoordinated |

| Avg Inventory | Avg Backorder | Avg Inventory Cost | Avg Inventory | Avg Backorder | Avg Inventory Cost |

1st Stage | | | 540.25 | 10.25 | 0 | 5.125 |

2nd Stage | 25 | 0 | 552.75 | 5.75 | 0 | 8 |

3rd Stage | 25.5 | 0 | 565.5 | | | 21.375 |

4th Stage | 23 | 0 | 576.875 | | | 45.625 |

5th Stage | | | 587.375 | | | 87 |

6th Stage | | | 599.375 | | | 143.375 |

7thStage | | | 609.375 | | | 191.625 |

8thStage | | | 618.5 | | | 233.875 |

9thStage | | | 627.25 | | | 255.125 |

10thStage | | | 636.375 | | | 286.75 |

11thStage | | | 644.625 | | | 321.75 |

12th Stage | | | 649.75 | | | 355.75 |

13th Stage | | | 655.25 | | | 385.375 |

14th Stage | | | 659.125 | | | 418.125 |

15th Stage | | | 661.75 | | | 451.5 |

16th Stage | | | 666.625 | | | 480.75 |

17th Stage | | | 670.25 | | | 508.625 |

18th Stage | | | | | | 525.625 |

OPERATIONS MANAGEMENT MGCR 472

Cynthia Younes ( 260329792 )

Zalan Szekely (260432583)

Gal Mordechai ‎ (260432473)

Omar Gameros Olivas (260429729)

2.

Coordination in the supply chain among independent firms such as raw-material factories, distributors, wholesalers and retailers is the key to attaining the flexibility necessary to enable them to progressively improve logistics processes in response to rapidly changing market conditions. Benefits include accurate ordering quantities in all levels of the chain to reduce backorder costs and inventory costs. The accuracy is first due to the information communicated from upstream from the retailer to the wholesaler about the demand forecasts. The wholesaler can then coordinate his orders from the distributor knowing the demand that the retailer wishes to satisfy. This will enable the distributor and factory to plan ahead due to delay times. The best way to do so is to extend the visibility of customer demand as far as possible. One way to achieve this is to establish a...