Time lag effects - operations function, Operation Management

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.

Posted Date: 3/16/2013 6:05:29 AM | Location : United States







Related Discussions:- Time lag effects - operations function, Assignment Help, Ask Question on Time lag effects - operations function, Get Answer, Expert's Help, Time lag effects - operations function Discussions

Write discussion on Time lag effects - operations function
Your posts are moderated
Related Questions
How the web site helps UPS to achieve its business objective?

Tha Americans with disabilies act that employees make reasonable accommodations for individuals with disabilts. How might this requirement affect law enforcement offices fire fight

Look into the future. Consider trends in society, technology, economics, environmentalism, and politics that can influence the future of W. L. Gore & Associates (Case 24) and Googl

Defining Operation Management Operations performance Function of operations Evolution of operations management E-business Integrated value c

discuss the advisability using modular assemblies in manufacturing or what are the advantages and disadvantages?

#question.six operators are to be assinged with 5 jobs with cost of assingment in rs given in the matrix below 1 2 3 4 5 62526 25877 78698 62345 93897 47468

Memo Motion and Micro Motion Recording Originally based on cine-photography, nowadays video-recording technology is used to record patterns of movement in process activities.

Think of a class you've taken in the past. What standards of performance did your professor establish? How was your actual performance measured? How was your performance compared t

There are a wide variety of exciting and interactive professions in the field of human services. As demonstrated in the video below and through your reading, do you think that musi

A company specialising in the manufacture and sale of baths. Each bath consists of a main unit plus a set of bath fittings. The company is split into two divisions, A and B. Divisi