Abstract: In 1960 an excellent game named The Beer Game was developed to provide a useful learning experience about the supply chains. This research work was made to explain certain behavior of supply chain systems with the help of beer game that was basic necessity of most of supply chains systems. This research is a real life example of how organizations are working on basis of simulation playing method of beer game. The major aim of this research was to reduce the total cost, for every member in the supply chain, by maintaining low stocks with proper delivery of orders. Research explained how the value of sharing information across the various components of supply chain helps to increase the efficiency of system.