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Surviving the Beer Game and Taming the Bullwhip Effect
Welcome back to The Warehouse Reality Check!
In this episode, we dive into the classic "Beer Game" simulation—developed at MIT in the 1960s—to understand the infamous "bullwhip effect" in supply networks. We explore how minor shifts in customer demand ripple upstream, causing massive inventory swings and disrupting operations.Did you know that modern supply planning systems often make this worse? By hyper-vigilantly flooding the network with safety stock to prevent stockouts, these systems often trigger "capacity blindness"—sending full truckloads into already stressed, congested warehouse…
The skinny
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