Bev Alc Game: Interactive Explainer & Simulator
A hands-on exploration of the US three-tier system for beverage alcohol & the classic “bullwhip” dynamics.
In this model, Manufacturers sell into Distributors, who sell to Retailers that serve consumers.
The tiers are legally separated, so demand & inventory signals often travel with delay, creating amplification upstream. This page is MIT-licensed & free to adapt.
Author: Alvin J Lin
License: MIT
Key takeaways
- Bullwhip amplification: Small demand shifts at Retailer can balloon into large order swings at Distributor & Manufacturer.
- Lead times & info delays bite: Separated tiers & batching practices slow signals, prompting over-correction.
- Policies drive outcomes: Order-up-to targets, safety stock, batching & capacity caps can stabilise or destabilise flows.
- Local vs system goals: Optimising one tier alone often increases total volatility & cost across the chain.
- Transparency helps: Sharing POS, inventory positions & constraints reduces uncertainty & dampens swings.
- Right buffers, right place: Strategic inventory, capacity & time buffers beat blanket “more everywhere”.
Roles in this three-tier model
Retailer
Faces consumer demand. Orders from Distributor to hit target stock given lead time & uncertainty.
Distributor
Aggregates retailer orders. Manages inbound from Manufacturer & outbound to Retailers; batching is common.
Manufacturer
Produces against Distributor orders subject to production lead time & capacity; can ration during spikes.
How to use
- Pick a Scenario &/or tweak Controls below.
- Scroll to Charts. Tap/click any point to see exact values & causal notes.
- Compare tiers to spot amplification, lags & policy effects.
Scenarios & controls
Loops lines & point fades until paused.
Policy knobs by tier
Retailer
Distributor
Manufacturer
Charts by tier
Lines: Orders placed & Shipments received. Filled area: Inventory (below zero shows backlog). Tap/click a point for details.