First round entry for the Beer game simulation for event held at Drishti, SIOM (B'School Fest). Team Active Y came first in second round.

1. SIOM Simulacrum
Simulacrum
Team- ActiveY
NITIE, Mumbai
Sandeep Singh Bedi, bedisandeep@gmail.com, 9702970021
Pradeep Chhabria, p.chhabria.lnmiit@gmail.com, 9702968768
Rakesh Sahu, rksahu.83@gmail.com, 9757308086
Shanu Singh, shanuchaudhery@gmail.com, 9702018520

2. SIOM Simulacrum
Question 1: What is Bullwhip Effect and how does it relate to lack of coordination in a supply
chain?
Bullwhip Effect is the phenomenon where a retailer’s orders to their suppliers tend to have a larger
variance than the consumer demand that triggered the orders. This demand distortion propagates
upstream with amplification occurring at each echelon. Three major causes of the Bullwhip Effect:
1. Lead time of information sharing and material
2. Order batching & forecasting error
3. Supply shortages, which also lead to artificial demands.
Oscillating demand magnification upstream in supply chain is shown below:

3. SIOM Simulacrum
Lack of Coordination of information across different tiers leads to ripple effect as shown above. It can
be dealth with real-time information sharing system hence reducing the lead time, controlling the
inventory and finally improving the service level.

4. SIOM Simulacrum
Question 2: What problems result if each stage of a supply chain views its demand as the orders
placed by the downstream stage? How should firms within a supply chain communicate to
facilitate coordination?
If demand is taken as the order placed, then downstream stage had to rely on the sales orders from
stage above to product forecasts, plan capacity, control inventory, and schedule production. Big
variations in demand will be a major problem, leads to bullw
bullwhip’s effect.
The common inefficiencies in this supply chain are mentioned in below figure.

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Approaches to provide Better Communication within Supply Chain
Data requirements for supply chain modeling

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Question 3: How is the building of strategic partnerships and trust valuable within a supply
chain?
Successful supply chain performance is based on a high level of trust and robust partnership
strategies.
Strategic Partnership aims for synergy among partners based on trust with a belief that benefits
from alliance would be more productive than an individual unit.
It provides:
• Reduced conflict between partners.
• On-time delivery
• Greater consistency in parts, supplies, semi-assembled, and completed products
• Effective information sharing among partners resulting in better knowledge for accurate
forecasts
Characteristics

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Trust among partners is an essential requirement for a successful Supply Chain.
Firms within a supply chain environment need to share resources and information with partners by
building trust for a successful Supply Chain.

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Question 4: What are the different CPFR scenarios and how do they benefit the supply chain
partners?
Collaborative Planning, Forecasting, and Replenishment is a business process model whereby supply
chain trading partners can jointly plan key supply chain acidities from production and delivery of raw
materials to production and delivery of final products to end customers. The latest version of the
CPFR guidelines is an interactive cycle of four main activities, so called Collaboration Activities as
shown in below diagram.

10. SIOM Simulacrum
The CPFR reference model is designed to fit many scenarios. Any individual CPFR program must adapt
the model to the particular needs of the trading relationship
We can select multiple scenarios from above table according to adaptability and industry.

11. SIOM Simulacrum
References
1. How human behaviour amplifies the bullwhip effect , Joerg Nienhaus, Arne Ziegenbein ,
Christoph Duijts, Centre for Enterprise Sciences (BWI), Swiss Federal Institute of
Technology (ETH) Zurich, Zuerichbergstrasse 18, 8028 Zurich, Switzerland
2. The Bullwhip Effect In Supply Chains, Hau L Lee, V Padmanabhan, and Seungjin Whang;
Sloan Management Review, Spring 1997, Volume 38, Issue 3, pp. 93-102
3. Challenging the bullwhip effect with advanced information sharing By R. Douglas Derrick
4. Reducing the impact of demand process variability within a multi-echelon supply chain,
Francisco Campuzano Bolarín ,Lorenzo Ros Mcdonnell, Juan Martín García, Department of
Business Economy . Technical University of Cartagena. Campus Muralla del Mar s/n, 30201.
Cartagena (Spain).
5. Managing Supply Chain Demand Variability with Scheduled Ordering Policies Ge ´rard P.
Cachon Duke University, Fuqua School of Business, Durham, North Carolina 27708,
www.duke.edu/ ˜gpc
6. CPFR Overview Handbook, Voluntary Inter industry Commerce Standards (VICS), FIVE
ESSENTIAL ELEMENTS OF INTEGRATED SUPPLY CHAIN MANAGEMENT, AQUA
MANAGEMENT CONSULTING GROUP
7. A Guide to CPFR Implementation, Accenture
8. A white paper by J D Edwards on CPFR — COLLABORATIVE PLANNING,
FORECASTING AND REPLENISHMENT
9. Collaborative Planning, Forecasting and Replenishment (CPFR®, VICS, 2004.