Bullwhip Simulation : Part 1

I completed the Bullwhip simulation and I felt that it really got into my nerves. It was frustrating for me as I was not able to able to return the systems to equilibrium. Though it sounded very simple as an objective to return the systems to equilibrium, once somebody starts playing it, they will soon realize that it is more intense and complex than it initially seemed. I thought the concept behind the simulation was also very complex but the way they have worded it, seemed like they wanted to camouflage that complex idea with simple words. It sounded so simple. Customers are ordering 10 cases of beer and you have 10 cases of inventory each week. In week 2, your customers will increase their orders from 10 cases of beer a week to 15 cases of beer. That was it. I had to make sure that I can control my supply chain in conformance with the customers’ demand. But, I was wrong. It’s not that simple. I applied two strategies. One was to start off with the customers’ order in mind only. I wanted to make sure that the customers are getting what they are asking for. Pretty soon, I ran into an inventory creep, so I had to cut my supply. In a particular moment of time, I got really scanty. But that didn’t save my day as well. Time isn’t static and it beat me in the long run. Then I applied my second strategy. And that is to start in a skeptical manner. Producing and supplying less, which at one point of time, prompted me to produce by zillions. I was getting messages that my customers are thirsty and I had no means to quench their thirst once the demand started to creep in. And lastly, I would like to say that one has to be really, really judicial in his/her decision while completing this simulation to be successful.