Title
The Craft Beer Game and the Value of Information Sharing
Author
Grassel, Joshua (California Polytechnic State University)
Keller, Alfred Craig (California Polytechnic State University)
Hill, Alessandro (California Polytechnic State University)
Schulte, F. (TU Delft Transport Engineering and Logistics)
Contributor
Mes, Martijn (editor)
Lalla-Ruiz, Eduardo (editor)
Voß, Stefan (editor)
Date
2021
Abstract
The craft beer supply chain in the USA differs from the supply chain of macro breweries in its structure, handled volumes and product shelf-life. In this work, we study how these smaller craft breweries can benefit from transparency in their supply chain. We consider additional information sharing of orders and inventories at downstream nodes. The levels that we investigate grant the brewery incremental access to distributor, wholesaler, and retailer data. We show how this knowledge can be incorporated effectively into the brewery’s production planning strategy. Extending the well-known beer game, we conduct a simulation study using real-world craft beer supply chain parameters and demand. We quantify the impact of information sharing on the craft brewery’s sales, spoilage, and beer quality. Our model is designed to directly support the brewery when evaluating the value of downstream information and negotiating data purchases with brokers. Through a computational analysis, we show that the brewery’s benefits increase almost linearly with every downstream node that it gets data from. Full transparency allows to halve the missed beer sales, and beer spoilage can even be reduced by 70% on average.
Subject
Craft beer industry
Information sharing
Production planning
Simulation
Supply chain management
To reference this document use:
http://resolver.tudelft.nl/uuid:ca94f877-6c80-4bfd-a1a0-f9c90ef26f7c
DOI
https://doi.org/10.1007/978-3-030-87672-2_15
Publisher
Springer
Embargo date
2022-03-22
ISBN
978-3-030-87671-5
Source
Computational Logistics: Proceedings of the 12th International Conference, ICCL 2021
Event
12th International Conference on Computational Logistics, ICCL 2021, 2021-09-27 → 2021-09-29, Virtual, Online
Series
Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics), 0302-9743, 13004 LNCS
Bibliographical note
Green Open Access added to TU Delft Institutional Repository 'You share, we take care!' - Taverne project https://www.openaccess.nl/en/you-share-we-take-care Otherwise as indicated in the copyright section: the publisher is the copyright holder of this work and the author uses the Dutch legislation to make this work public.
Part of collection
Institutional Repository
Document type
book chapter
Rights
© 2021 Joshua Grassel, Alfred Craig Keller, Alessandro Hill, F. Schulte