Time lag effects - operations function, Operation Management

Assignment Help:

Time Lag Effects - Operations Function

Feedback control in complex systems can bring its own problems, due to time lag between measuring the output deviation and realising the effects of the corrective adjustments. A well-known illustration of this phenomenon was presented by Jay W Forrester in his book, Industrial Dynamics. He had been consulted by a white goods manufacturing concern which had been experiencing wildly fluctuating production levels over a period of years; despite the best efforts of the company's management they had been unable to keep production output in reasonable balance with customer demand. Forrester and his team studied the operations of the company's distribution chain (shown in simplified form in the figure) and formulated a computer simulation model of the factory - warehouse - distributor - retailers.

1355_Time Lag Effects – Operations Function.png

The figure below (adapted from Forrester, 1965) shows the results obtained when a 10 per cent step-increase in demand at the retail outlets was introduced. This chart is necessarily 'cluttered', to show how the various order, inventory and production levels changed in response to the initial increase in sales.

1964_Time Lag Effects – Operations Function 1.png

For our purposes it will be sufficient if you locate the two lines labeled 'Retail sales' and 'Factory production output'. It was found that, because of a series of time-lags in the chain, the feedback signal was greatly amplified by the time it reached the factory, resulting in over-reaction. Note that the production level climbs by 45 per cent, creating an excessive build up of inventories. In response the production level falls to 3 per cent less than the original level, and so on. It takes about 18 months for the fluctuations to be damped out.


Related Discussions:- Time lag effects - operations function

Describe departments being located close together, A (n) ____ gives the rel...

A (n) ____ gives the relative importance of each pair of operations or departments being located close together.

Discuss the strategic importance of layout decisions, Discuss the strategic...

Discuss the strategic importance of layout decisions. How important as these decisions in terms of a company's long-term profitability goals? What are some examples?

How the expected time estimate is calculated in pert, How the expected time...

How the expected time estimate is calculated in PERT ? In PERT the expected time estimate is computed on the basis of Beta distribution of time estimates.

Explain ethical behaviour by corporations, Read and review the excerpts fro...

Read and review the excerpts from the Sarbanes-Oxley Act in the Appendix of the textbook. Identify three of the criminal penalties that can be charged under the Sarbanes-Oxley Act.

Explain how do hr managers cope with stress, Why hr managers, etc. Is a lon...

Why hr managers, etc. Is a lonely job? How do hr managers cope with stress? What does it take to become a hr manager? Reference and cited

Explain what is the assembly line efficiency, An assembly line with 30 acti...

An assembly line with 30 activities is to be balanced. The total amount of time to complete all 30 activities is 42 minutes. The longest activity takes 2.4 minutes and the shortest

Explain what is the minimum number of workstations output, An assembly line...

An assembly line with a number of tasks is to be balanced. The sum of the task times is 100 minutes. The line will operate for 7 hours per day. What is the minimum number of wor

Explain authorities under the industrial disputes act, Explain the authorit...

Explain the authorities under the Industrial Disputes Act, 1947. Ans: One of the authorities under the Industrial Disputes Act, 1947 for investigation and settlement of indu

Define conflict within a project team, What are the consequences of ignorin...

What are the consequences of ignoring a conflict within a project team?

Miss.., Explain what might happen if energy costs increase in future at Nor...

Explain what might happen if energy costs increase in future at NorSal Trondheim

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd