Forecast Sharing Game - FSG
This game can be used to illustrate and help students to understand issues such as the role of information sharing in supply chains; the role of incentives, contracts, and behaviors in synchronizing supply chain decisions; the role of trust and trustworthiness in business settings; the implications of lopsided risk sharing; the implications of supply chain environment (such as cost of production, the level of market uncertainty) on decisions and, so on.
To do so, the game simulates the interaction between a supplier and a retailer. The game is set up such that the supplier and retailer face different risks due to uncertain demand.
In this game, prior to the actual sales season, the supplier player has to decide on how many units of inventory to produce for the retailer player while facing an uncertain demand. Being closer to the market, the retailer player has some advanced information regarding the potential demand for the product. The retailer communicates this forecast information to the supplier. The supplier then produces and stocks inventory for the retailer to be distributed during the actual season.