Beer Game and Its Link with Supply Chain

Beer Game and Its Link with Supply Chain
 

Table of Contents

1. Research of Role of Wholesaler in Supply Chain. 3

2. Critical Analysis of Game Performance. 6

3. Improvement of performance of Wholesaler in Future. 7

References. 9

1. Research of Role of Wholesaler in Supply Chain

a) Definition of Role of Wholesaler in Supply Chain and Their Purpose in Supply Chain

The principal role of the wholesaler in the Supply Chain is to ameliorate the adaptability of the supply chain by which both the manufacturers and distributors acquire immense help to attain customers more productively (Casino et al. 2021). Simultaneously, distributors get enough help from wholesalers to manage assets effectively. Nowadays, the function of wholesalers in the case of distributors is like an expanded warehouse. They can allow access to enormous series of goods from suppliers of nations. There are several advantages if one can work with wholesalers. One of them is that distributors can trust wholesalers regarding their products, and the direct meeting with manufacturers is not necessary in this case. It is the task of the wholesalers to contact manufacturers directly as well as they deal with products as well as goods. The wholesalers can provide an opportunity to distributors to purchase goods and products in minimal quantities. In addition, they provide opportunities for distributors to be dependent on particular orders. Hence, sticking of distributors is not required in case of tying with capital in directory. In addition to that, they benefit as they receive orders in a very short period from wholesalers, which results in the distribution and sale of products rapidly. 

Apart from this, wholesalers have several purposes in Supply Chain, which are described below:

• Gathering of Goods

Several varieties of products have been purchased by wholesalers from various manufacturers and are generally purchased in advance following the trend of particular products in the market. They purchase innovative products as they can be able to determine the requirements as well as aspirations of customers. Hence, such products are being gathered by them which can allure customers easily. Products are being kept in stock as they have to sell them to retailers. In addition to that, import of goods from abroad is done by wholesalers. Thus, storage of goods from several producers as well as manufacturers has been done by wholesalers (Sutawidjaya et al., 2021).

• Fragmenting in Bulk

Wholesalers ‘ purchases of goods has been done in huge quantities from producers and has been sold in fewer quantities to retailers. This has been considered as one of the significant purposes of wholesalers. This purpose of wholesalers can prove to be advantageous to producers and retailers. It is extremely tough for individual producers to create direct contact with those retailers scattered all over the world. Apart from this, orders of retailers are generally in small quantities as well as there are vast inconveniences of direct implementation of these orders. Wholesalers have solved this issue by storing products in huge quantities. Usually, retailers can’t set up direct contacts with producers for purchasing; in this case, wholesalers are advantageous for retailers (Akintokunbo and Arimie,2021).

• Warehousing or Storing

This has been considered a vital marketing function performed only by wholesalers. A huge gap of time is there in between production and expenditure of goods. Hence, wholesalers have to keep a huge stock of products to avert occasional shortages for retailers. Assurance of availability of products has been provided by wholesalers to retailers continuously. Retailers can restock their stocks on time by buying products from wholesalers. They can stabilize prices with the help of wholesalers by regulating supply following demand. Several wholesalers have maintained separate warehouses for the storage of goods (Fakhrzad and Goodarzian,2021).

• Shipment

Wholesalers have provided the transportation facility of products from producers to their godowns. They have sent goods to distant places to retailers. They can save the Cost of transporting products in huge quantities. There are various wholesalers by whom specific vehicles have been maintained (Mosallanezhad et al., 2021). 

• Classification

Goods are being sorted out by several wholesalers following their size, shape, and quality. Goods are broken out by them into little lots and are repacked again. In addition to that, brand names have been put on their own. Thus, packing, branding as well as classification of goods has been performed by wholesalers. Wholesalers have done assurance of supply of consistent quality of goods to retailers by classification as well as standardization of goods (Fristin and Supanto, 2021).

• Capitalizing

Several wholesalers capitalize manufacturers by providing them money in advance by ordering any product or buying vast amounts of products based on cash. Retailers grant credit to the wholesalers. Hence, both producers, as well as retailers, have been benefited by wholesalers profoundly (Zhang et al. 2021).

• Bearing of Risks

Wholesalers have been considered shock absorbers. There are several risks in the delivery procedures of products that wholesalers have born. As there has been a transformation in demand or destruction of products while storing them, risks arise at this time. Protection of producers has been against this hazard as well as they get help as wholesalers bear various losses, which consist of those losses that have occurred due to debts (Gomez‐Mejia et al., 2021).

• Evaluation

Wholesalers have tried maintenance and stabilization of prices by regulation of supply of products in compliance with the demand. They have foreseen the conditions of the market. In addition to that, demand for products, aspirations of customers as well arrangements to meet the requirements of customers have been anticipated by wholesalers (Hou and Zeng, 2021).

• Interlink with Information of Market

As wholesalers have foreseen conditions of the market, several information has been gathered by wholesalers from retailers with regards to transformation in aspirations of customers, fashions as well as purchasing habits of customers as well as this information have been passed by them to manufacturers. According to Kusumaputri (2021), surveys of the market have been conducted by several wholesalers. Retailers get advice from wholesalers regarding those products that will be able to satisfy the requirements of customers to a great extent, and they can provide this advice based on extensive knowledge regarding those products that have been produced. 

• Facility of Packing

Wholesalers have provided the facility of packing to retailers. Goods are purchased in huge quantities, split into minor quantities, and repacked for selling to retailers (Guarnieri et al., 2021).

b) Current Risks and Challenges Faced by Organisations from Perspective of Wholesalers within Drinks and Beverage Supply Chain

Several risks as well as challenges that organizations within Drinks have faced, and Beverage Supply Chain are as follows:

• Suppliers of Drinks and Beverages cannot supply ample amounts of drinks and beverages to their customers as they have faced the issue of delivery of products only due to the Covid-19 pandemic (Khuntia et al. 2021).
• Wholesalers are unable to store enough drinks and beverages as they cannot be able to purchase them from manufacturers.

2. Critical Analysis of Game Performance

a) To manage costs of stock-outs versus stock-holding costs, several strategies have been performed by Wholesalers:

• Calculation of Reorder Point

Assurance has been provided by ideal reorder points that inventory of wholesalers cannot be dipped below levels of safety stock. Costs can be minimized as an alert can be provided by calculation to wholesalers when wholesalers are required to buy enormous products for their storage from manufacturers. Reorder Point provides benefits to the wholesalers as they can avoid costs of shortage, which has been considered a hazard of losing the order of consumers only because of minimal levels of inventory. they will know the correct time for placing orders with  the help of reorder points for new shipments. Reorder they can determine points in various ways. Wholesalers use three required methods nowadays: information from earlier months, software for forecasts, and formulas of reorder points. Knowledge of Reorder Point helps wholesalers to know the correct capacity of storing products for sale  as well as it helps them to select  enough quantity of goods for sale (Tavana et al. 2021)

• Reduction of Lead Time of Supplier

It has been considered as that extent of time taken from that movement when order of inventory has been placed and continues till the delivery of goods by suppliers. There should be an increase in the stock in warehouses of  wholesalers when there has been an increment in lead time by suppliers so that they can fulfill customers’ demands on time and attract them in huge numbers. Wholesalers have to develop good relationships with the suppliers so that they can store vast quantities of goods in their warehouse and provide only affordable prices for more storage(Aslam et al., 2021).

• Disposition of Superannuated Stock

Superannuated stock has been considered a common issue of online retailers nowadays. Better information of both lifestyle of the product and the pattern of demand of customer can help any wholesaler make good decisions regarding their orders as they have to order products in huge quantities (Gerth et al. 2021).

b) Bullwhip Effect in Supply Chain and its Management

The bullwhip Effect occurs in the supply Chain when there has been the transformation of customers’ demands by which companies are bound to order vast quantities of products to meet the demands of consumers (Hsu et al. 2021). This effect gradually circulates the supply chain which starts with retailers then goes to wholesaler after that it goes to distributor and after that manufacturer has to suffer thuis flow up. Suppliers of raw materials are not spared from this effect. Various supply chains within different industries have to suffer this effect as naturally demands for products are on the basis of demands that have been predicted by company. In this case, the demand of customers is not that much included as well as considered. 

This effect can be managed by several measures which are discussed below:

• Several organizations are there who do not recognize the inventory of suppliers of their own. Hence, comprehensive stock of inventory should be taken by them of their own as well as of their suppliers.
• Amounts of protected inventory should be re-evaluated consistently. In addition to that, re-evaluation of maximum and minimum inventories has been required. 
• Clear communication has been required down supply chain
• Lead time as well as delays should be cut down
• Size of orders should be reduced as well as there should be more and more frequent orders.
• Supply Chain should be reduced
• Improvement of forecasts should be required 
• Utilization of technology should be done for their help
• Utilization of standard minimal costs should be required in case of retail company

3.Improvemt of performance of Wholesaler in Future

a) Fulfilment of Inventory

There has been an impact of retail which is omnichannel by which distributors get affected rapidly than forecasted. Quantity of inventory within every location has been spread more and more as enormous retailers are there who utilize the networks of stores as centers for local distribution. Systems must be deployed by wholesalers which have strength of dynamic procedure for complex as well as manifold cluster of orders as well as different signals of market. They have to update execution of fulfillment on best of good practices. Decision of distribution can be responsive as well as accurate by upgradation. Automation is important as stores can be able to avert touching orders by hand every day by which manual errors can be reduced.

b) Monitor Retail Partners

Efficient working with retailers has been required in case of wholesalers for the improvement in their strategies. Portals which are utilized for vendors as well as retailers will be proved advantageous in order to expand transparency. Operations can be more efficient as well as outcomes can be more profitable by utilizing those systems which have Artificial Intelligence (AI) in it. 

References

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Aslam, J., Saleem, A., Khan, N.T. and Kim, Y.B., 2021. Factors influencing blockchain adoption in supply chain management practices: A study based on the oil industry. Journal of Innovation & Knowledge, 6(2), pp.124-134.

Casino, F., Kanakaris, V., Dasaklis, T.K., Moschuris, S., Stachtiaris, S., Pagoni, M. and Rachaniotis, N.P., 2021. Blockchain-based food supply chain traceability: a case study in the dairy sector. International Journal of Production Research, 59(19), pp.5758-5770.

Fakhrzad, M.B. and Goodarzian, F., 2021. A new multi-objective mathematical model for a Citrus supply chain network design: Metaheuristic algorithms. Journal of Optimization in Industrial Engineering, 14(2), pp.127-144.

Fristin, Y. and Supanto, F., 2021. Development Model of Rice Supply Chain Management to Ensure Self-Sufficiency and Food Security. Jurnal Bisnis dan Manajemen, 8(2), pp.353-366.

Gerth, F., Lopez, K., Reddy, K., Ramiah, V., Wallace, D., Muschert, G., Frino, A. and Jooste, L., 2021. The Behavioural Aspects of Financial Literacy. Journal of Risk and Financial Management, 14(9), p.395.

Gomez‐Mejia, L.R., Martin, G., Villena, V.H. and Wiseman, R.M., 2021. The behavioral agency model: Revised concepts and implications for operations and supply chain research. Decision Sciences, 52(5), pp.1026-1038.

Guarnieri, P., de Aguiar, R.C., Thomé, K.M. and Watanabe, E.A.D.M., 2021. The Role of Logistics in Food Waste Reduction in Wholesalers and Small Retailers of Fruits and Vegetables: A Multiple Case Study. Logistics, 5(4), p.77.

Hou, W. and Zeng, Y., 2021. Strategic Analysis of the Pricing Mechanisms in an Online Book Supply Chain in the Presence of Reference Price Effects. Journal of Theoretical and Applied Electronic Commerce Research, 16(5), pp.1492-1516.Hsu, C.H., Yang, X.H., Zhang, T.Y., Chang, A.Y. and Zheng, Q.W., 2021. Deploying Big Data Enablers to Strengthen Supply Chain Agility to Mitigate Bullwhip Effect: An Empirical Study of China’s Electronic Manufacturers. Journal of Theoretical and Applied Electronic Commerce Research, 16(7), pp.3375-3405.

Khuntia, J., Kathuria, A., Andrade-Rojas, M.G., Saldanha, T. and Celly, N., 2021. How Foreign and Domestic Firms Differ in Leveraging IT-enabled Supply Chain Information Integration in BOP Markets: The Role of Supplier and Client Business Collaboration. Journal of the Association for Information Systems, 22(3), p.6.

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Akintokunbo, O.O. and Arimie, B.E., 2021. Supply Chain Management: A Game Changer in the Oil and Gas industry in Nigeria: A Review of Literature. International Journal of Supply Chain and Logistics, 5(3), pp.54-68.

Aslam, J., Saleem, A., Khan, N.T. and Kim, Y.B., 2021. Factors influencing blockchain adoption in supply chain management practices: A study based on the oil industry. Journal of Innovation & Knowledge, 6(2), pp.124-134.

Casino, F., Kanakaris, V., Dasaklis, T.K., Moschuris, S., Stachtiaris, S., Pagoni, M. and Rachaniotis, N.P., 2021. Blockchain-based food supply chain traceability: a case study in the dairy sector. International Journal of Production Research, 59(19), pp.5758-5770.

Fakhrzad, M.B. and Goodarzian, F., 2021. A new multi-objective mathematical model for a Citrus supply chain network design: Metaheuristic algorithms. Journal of Optimization in Industrial Engineering, 14(2), pp.127-144.

Fristin, Y. and Supanto, F., 2021. Development Model of Rice Supply Chain Management to Ensure Self-Sufficiency and Food Security. Jurnal Bisnis dan Manajemen, 8(2), pp.353-366.

Gerth, F., Lopez, K., Reddy, K., Ramiah, V., Wallace, D., Muschert, G., Frino, A. and Jooste, L., 2021. The Behavioural Aspects of Financial Literacy. Journal of Risk and Financial Management, 14(9), p.395.

Gomez‐Mejia, L.R., Martin, G., Villena, V.H. and Wiseman, R.M., 2021. The behavioral agency model: Revised concepts and implications for operations and supply chain research. Decision Sciences, 52(5), pp.1026-1038.

Guarnieri, P., de Aguiar, R.C., Thomé, K.M. and Watanabe, E.A.D.M., 2021. The Role of Logistics in Food Waste Reduction in Wholesalers and Small Retailers of Fruits and Vegetables: A Multiple Case Study. Logistics, 5(4), p.77.

Hou, W. and Zeng, Y., 2021. Strategic Analysis of the Pricing Mechanisms in an Online Book Supply Chain in the Presence of Reference Price Effects. Journal of Theoretical and Applied Electronic Commerce Research, 16(5), pp.1492-1516.Hsu, C.H., Yang, X.H., Zhang, T.Y., Chang, A.Y. and Zheng, Q.W., 2021. Deploying Big Data Enablers to Strengthen Supply Chain Agility to Mitigate Bullwhip Effect: An Empirical Study of China’s Electronic Manufacturers. Journal of Theoretical and Applied Electronic Commerce Research, 16(7), pp.3375-3405.

Khuntia, J., Kathuria, A., Andrade-Rojas, M.G., Saldanha, T. and Celly, N., 2021. How Foreign and Domestic Firms Differ in Leveraging IT-enabled Supply Chain Information Integration in BOP Markets: The Role of Supplier and Client Business Collaboration. Journal of the Association for Information Systems, 22(3), p.6.

Kusumaputri, R., 2021. Dell Corporation Strategy in Supply Chain Management in order to 

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