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EXPERIMENTING WITH INDUSTRIAL DYNAMICS IN THE FOREST SECTOR – A BEER GAME APPLICATION

Two games, called “Wood Supply Games”, are developed based on the structure and dynamics of the Beer Game. The games are intended as student exercises in forestry logistics courses. By introducing divergent and convergent flows in the supply chain, the relevance to the forest sector is increased. Results from pilot experiments of the games are presented and discussed in terms of how different degrees of complexity in supply chain structures may affect their efficiency. Measures of efficiency are accumulated costs, amplification of demand and the sample variance of order rates. Results indicate that supply chain performance is negatively affected by increasing rigidity of constraints at points of divergence. Furthermore, lower degrees of efficiency and predictability are observed as complexity of supply chain structure increases. Testing of results and proposed hypotheses can be accomplished by running numerous replications of the games, or alternatively, by development of appropriate simulation models.