Beer game order policy optimization under changing customer demand

Beer game order policy optimization under changing customer demand

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Article ID: iaor20081615
Country: Netherlands
Volume: 42
Issue: 4
Start Page Number: 2153
End Page Number: 2163
Publication Date: Jan 2007
Journal: Decision Support Systems
Authors: , ,
Keywords: heuristics: genetic algorithms
Abstract:

The present work analyses the optimal Beer Game order policy when customers demand increases. The optimal policy is found by means of a Genetic Algorithms (GAs) technique. GAs are specially suited for this problem because of the high dimension of the search space, and because the objective function, i.e. the global score of the chain, has many local minima. Our results show that the best performance of the chain is obtained when the sectors have different order policies. The advantage increases with the increasing change in the customer demand.

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