The game represents a supply chain with a non-coordinated process where problems arise due to lack of information sharing.

Due to lack of information, suppliers, manufacturers, sales people and customers often have an incomplete understanding of what the real demand of an order is.

[2] The Beer Game was invented by Jay Wright Forrester at the MIT Sloan School of Management in 1960.

The goal of the game is to meet customer demand with minimal expenditure on back orders and inventory.

The game is played in 24 rounds and in each round of the game the following four steps have to be performed: As previously said, there are four stages, manufacturer, distributor, supplier, retailer, with a two-week communication gap of orders toward the upstream and a two-week supply chain delay of product towards the downstream.

In the board game version, players cannot see anything other than what is communicated to them through pieces of paper with numbers written on them, signifying orders or product.

The retailer draws from a deck of cards for what the customer demands, and the manufacturer places an order which, in turn, becomes product in four weeks.

[6] A supply chain is a network between a company and its suppliers to produce and distribute a specific product to the final buyer.

By managing the supply chain, companies are able to cut excess costs and deliver products to the consumer faster.

SCM is based on the idea that nearly every product that comes to market results from the efforts of various organizations that make up a supply chain.

It refers to the role played by periodical order amounts as one moves upstream in the supply chain toward the production end.

The term was first coined around 1990 when Procter & Gamble perceived erratic and amplified order patterns in its supply chain for babies' diapers.