Sci-fi short story where war is a simulated game but loser pays real cost in lives and material

Read this in late 80s/early 90s but story could have been anytime 60s-90s. It was in an anthology I believe, but not sure if for one author or a “years best scifi” compilation.

From what I can remember, a big war was played in a simulation room with both sides playing the game. And when one side lost, all the soldiers, equipment, and such that had been destroyed in the game on the losing side was marched for real into a giant incinerator or something. I think the point was to have war with real but pointed consequence, and in a more efficient and humane way?

Thanks for the help!