Abstract for: Individual Versus Group Rationality: A Coevolutionary Approach to the Beer Game

In this paper, we examine the evolution of strategies in the Beer Distribution Game (BDG). This is a well known game which has many parallels with supply chain optimisation problems. This paper explores the strategies used by individuals participating in this game. The issue of bounded rationality is addressed in detail throughout our simulations. This paper presents a new and alternative approach to evolving strategies for the BDG. This includes a co-evolutionary architecture which provides a means of evolving strategies across the various sectors of the BDG. Our results identify the best performing or fittest strategies for the BDG when two alternative fitness approaches are used. We show the significant implications for individual strategies in the BDG when agents are influenced by greater levels of bounded rationality. Our conclusions indicate the implications of individual and group rationality on the BDG.