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A SIMULATION GAME FOR TEACHING SERVICE‐ORIENTED SUPPLY CHAIN MANAGEMENT: DOES INFORMATION SHARING HELP MANAGERS WITH SERVICE CAPACITY DECISIONS? *
Author(s) -
Anderson Edward G.,
Morrice Douglas J.
Publication year - 2000
Publication title -
production and operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.279
H-Index - 110
eISSN - 1937-5956
pISSN - 1059-1478
DOI - 10.1111/j.1937-5956.2000.tb00322.x
Subject(s) - supply chain , service (business) , computer science , supply chain management , service level , service management , capacity management , sample (material) , business , on demand , operations management , process management , marketing , economics , computer network , chemistry , multimedia , chromatography
For decades, the Beer Game has taught complex principles of supply chain management in a finished good inventory supply chain. However, services typically cannot hold inventory and can only manage backlogs through capacity adjustments. We propose a simulation game designed to teach service‐oriented supply chain management principles and to test whether managers use them effectively. For example, using a sample of typical student results, we determine that student managers can effectively use end‐user demand information to reduce backlog and capacity adjustment costs. The game can also demonstrate the impact of demand variability and reduced capacity adjustment time and lead times.