Cracking the Bullwhip: Team Collaboration and Performance within a Simulated Supply Chain

Abstract

The current study explored the role of collaboration in team performance using a computer-based simulation of a supply chain called the Beer Game developed by the Massachusetts Institute of Technology (MIT). In SCM simulations, as in real life, a ‘bullwhip’ effect leads to a drop in profitability of the supply chain. The inclusion of Human Factors knowledge within the domain of SCM provides a rich source of understanding of bullwhip-related phenomena experienced by managers. In this paper we describe a technique called ‘Cognitive Network Tracing’ which is used to examine the processes by which supply chain members make decisions and engage in communication in such scenarios. We examined the influence of different levels of Situation Awareness (SA) information given to supply chain members, and the influence of individual- or team-focused instructions, on a variety of measures of performance, communication, and SA. Results showed that team-focused groups of participants achieved better supply chain management performance than individual-focused groups of participants, but only when they were given information about current demand level in the supply chain. It is concluded that “Management Flight Simulators”, such as the Beer Game, have validity as tools to examine team collaboration and performance in management scenarios.