The Beer Distribution Game: Using Simulation to Teach Systems Thinking

Abstract

Describes how the authors have effectively employed the Beer Distribution Game, a simulation exercise developed at MIT′s Sloan School of Management, to teach systems concepts and systems thinking to managers. Details a description of how the simulation works and how its typical results are provided. In addition, discusses how to process the results and how to illustrate the application of the concepts to management problems. Demonstrates how management behaviours commonly found in complex business systems lead to dysfunctional management practices as well as poor performance and suggests how alternative ways of thinking (i.e. a systems perspective) are necessary to cope with the problems inherent in these complex situations. Suggestions for ways to extend the learning opportunities provided by the simulation are also provided.

Citation

Goodwin, J.S. and Franklin, S.G. (1994), "The Beer Distribution Game: Using Simulation to Teach Systems Thinking", Journal of Management Development, Vol. 13 No. 8, pp. 7-15. https://doi.org/10.1108/02621719410071937