Agents Playing the Beer Distribution Game: Solving the Dilemma Through the Drum-Buffer-Rope Methodology

Abstract

The Beer Distribution Game (BDG) is a widely used experiential learning simulation game aimed at teaching the basic concepts around Supply Chain Management (SCM). The goal in this problem is to minimize inventory costs while avoiding stock-outs –hence the players face the dilemma between storage and shortage. Human players usually get confused giving rise to significant inefficiencies in the supply chain, such as the Bullwhip Effect. This research paper shows how artificial agents are capable of playing the BDG effectively. In order to solve the dilemma, we have integrated supply chain processes (i.e. a collaborative functioning) through the Drum-Buffer-Rope (DBR) methodology. This technique, from Goldratt’s Theory of Constraints (TOC), is based on bottleneck management. In comparison to traditional alternatives, results bring evidence of the great advantages induced in the BDG by the systems thinking. Both the agent-based approach and the BDG exercise have proved to be very effective in illustrating managers the underlying structure of supply chain phenomenon.