Supply-chain simulation: coordination across silos

The group is divided into supply chains of four stages: retailer, wholesaler, distributor and factory. Each week, every stage sees only its own orders and stock and decides how much to order from the next stage, with delays in delivery. Communication between stages is limited, just as it often is between departments.

A small change in customer demand leads to large swings further up the chain, a well-known pattern in supply chains often called the bullwhip effect. Stock piles up in one place while another runs short, and costs climb. Teams usually blame each other until the facilitator shows the whole picture.

In a second round, teams may share information and agree simple rules. The debrief compares the two rounds and turns the lessons into concrete agreements for real handovers between your teams.