The basic concept behind supply chain management (SCM) is simple: customers order products from you; you keep track of what youre selling, and you order enough raw materials from your suppliers to meet your customers demand. So why is it that, the Economist claimed Managing a supply chain is becoming a bit like rocket science? The problem turns out to be one of coordination. Suppliers, manufacturers, sales people, and customers have their own, often incomplete, understanding of what real demand is. Each group has control over only a part of the supply chain, but each group can influence the entire chain by ordering too much or too little. Further, each group is influenced by decisions that others are making.

This lack of coordination coupled with the ability to influence while being influenced by others leads to what has been called the Bullwip Effect. Decisions made by groups along the supply actually worsen shortages and overstocks.

Go to the link below and play the Near Beer Simulation. Then in an MLA formatted document write a paragraph on how SCM can help companies create a competitive advantage. Following the paragraph answer the questions below based on your results from the game - you can number the questions. The paper could probably fit on one page.

forio.com/simulate/mbean/near-beer-game/run/

How many weeks did it take you to reach equilibrium?

What inventory shortages and lost orders did you experience?

Did you ever have more inventory than customer orders?

How did you adjust your production/raw orders to meet customer demand?

What challenges/problems did you experience?