SYSTEMS THINKING FOR MANAGERS – An introduction to the Beer Game

SYSTEMS THINKING FOR MANAGERS Pre-Workshop Assignment 10%
SYSTEMS THINKING FOR MANAGERS: This exercise is designed to give you an introduction to the Beer Game, which we will be playing in class. It provides a simple introduction to the dynamics of the ordering process.
You can find an explanation of the game we will be playing class on the website: http://jsterman.scripts.mit.edu/docs/Sterman-1992-TeachingTakesOff.pdf
To get started on the introductory simulation, logon to: http://forio.com/simulate/mbean/near-beer-game/run/#p=page0
Click Run Simulation
The screen you see in front of you contained two sets of information:
• On the upper part of the screen you see the New Orders from Customers and the Cumulative Unfilled Orders. This equates to the Total Orders from Customers. 
 • On the lower half of the screen you see the production process, which you can control by changing the Raw Material Orders number. It takes two weeks for the beer to reach the retailer and you can see the amount of beer in the pipeline as In Transit from Vendors and Work in Process (Brewing).
Each time you run the simulation, the numbers are updated. You will also get helpful messages about how you are progressing. The aim is to get your Finished Goods Inventory equal to your Total Orders from Customers.
Your assignment:
 Run the big game until you have a version where the inventory is balanced.  Copy these two screens shown below, which show your results. (If you do not manage to do this after 10 successive runs, send your best/latest results.)  Paste your results into a Word document.  Write a 100-word explanation of how you got your results.  Submit your paper in the assignment folder
Formatting protocols:
 All papers to be submitted in word (.doc/docx) or rich text (.rtf) format.
  If you submit it as a pdf file we may request you to send us your original file in word if we are unable to mark our comments on your assignment.
  Submit in the assignment folder on UTS online for the subject.
  No hard copies please and keep the graphics simple to reduce file size.
Each assignment should include:
• Title page – name and number of subject, your name, student number and submission date • Numbered pages .e.g.1/16 
 • Name and number of subject, your name and student number in the footer of every page 
 • Assignment files must be labelled last_name-first_name- 15336- Autumn- 2015- 
 Assignment 3 
 e.g. Starc-Michael-15336-Spring- 2016-Assignment 1 
 • 11 point Arial or 12 point Times New Roman, leave reasonable margin around sheet (15-25 
 mm). 
 • Titles should be of larger font bold; maximum 3 levels of headings. 
 • All tables and diagrams should be imported into Word 2003/7/10 format and fit within 
 page and be clear and useful for comprehension.

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