The Craft Beer Game and the Value of Information Sharing

Joshua Grassel, Alfred Craig Keller, Alessandro Hill*, Frederik Schulte

*Corresponding author for this work

Research output: Chapter in Book/Conference proceedings/Edited volumeChapterScientificpeer-review

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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.

Original languageEnglish
Title of host publicationComputational Logistics
Subtitle of host publicationProceedings of the 12th International Conference, ICCL 2021
EditorsMartijn Mes, Eduardo Lalla-Ruiz, Stefan Voß
PublisherSpringer
Pages222-236
ISBN (Electronic)978-3-030-87672-2
ISBN (Print)978-3-030-87671-5
DOIs
Publication statusPublished - 2021
Event12th International Conference on Computational Logistics, ICCL 2021 - Virtual, Online
Duration: 27 Sept 202129 Sept 2021

Publication series

NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume13004 LNCS
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349

Conference

Conference12th International Conference on Computational Logistics, ICCL 2021
CityVirtual, Online
Period27/09/2129/09/21

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.

Keywords

  • Craft beer industry
  • Information sharing
  • Production planning
  • Simulation
  • Supply chain management

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