How the ‘Beer Game’ Helps Retailers Solve Toilet Paper Crisis
- 1950s supply-chain simulation proves humans are wired to hoard
- Rewards will be huge for companies that figure this market out
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With nervous shoppers hoarding everything from toilet paper to tequila, retailers are coping by playing a game -- a game about beer.
Jay Forrester, a professor at MIT, invented the “beer game” in the late 1950s to illustrate system dynamics, a method of analyzing and managing complex organizations. The activity simulates supply-chain volatility, helping players navigate boom-or-bust conditions for products spanning diapers to refrigerators.