Results of a Beer Game Experiment: Should a Manager Always Behave According to the Book?

Edali M., Yasarcan H.

COMPLEXITY, vol.21, pp.190-199, 2016 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 21
  • Publication Date: 2016
  • Doi Number: 10.1002/cplx.21731
  • Journal Name: COMPLEXITY
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus
  • Page Numbers: pp.190-199
  • Yıldız Technical University Affiliated: Yes

Abstract

We investigate the effect of the literature suggested optimal values of the parameters of a dynamic decision-making heuristic in the presence of semirationally managed supply chain echelons using a soft coded one-to-one version of The Beer Game as an experimental platform. According to the counterintuitive results obtained in this study, it is possible for a "rational manager" to obtain higher costs than the costs generated by a "semirational manager." Thus, the results do not support the use of the well-established decision parameter values for the echelon of concern if the other echelons' inventories are managed suboptimally. (C) 2015 Wiley Periodicals, Inc.