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

Explain identifying and developing global leaders, Identifying and developi...

Identifying and developing global leaders is a key concern for international companies. Compare and contrast the skills and context of the traditional / national manager with that

Explain importing australian wine to the united states, Food is an integral...

Food is an integral part of understanding different countries, cultures, and lifestyles. In fact, your company is interested in importing Australian wine to the United States. Howe

Explain major reasons why companies adopt total quality, Discuss the three ...

Discuss the three major reasons why companies adopt total quality. Also, discuss the initial key steps are involved in the adoption process.

What is myers-briggs type indicator, Many of us have taken assessments in t...

Many of us have taken assessments in the past, such as the ASVAB (Armed Services Vocational Aptitude Battery) or MBTI (Myers-Briggs Type Indicator); the latter is described in your

Explain what are the functions of a manager, What are the functions of a ma...

What are the functions of a manager? If you had to pick one as being the most important function, which would it be and why?

Discuss-incorporation is no longer the special privilege, "...incorporation...

"...incorporation is no longer the special privilege it once was". Discuss this statement. Does it have any impact on businesses (those not incorporated?)

Trans europlastic, #questiApplying the EBQ1 model, what batch size would yo...

#questiApplying the EBQ1 model, what batch size would you recommend for the babybath (143BB)? How long will each batch take to produce, and how many batches per year will be made?

Explain operations management for improving a process, Recently some Operat...

Recently some Operations Management experts have begun insisting that simple minimizing process velocity, which actually means minimizing the time that it takes to process somethin

Explain research on leader-member exchange, Write a 750-1,000-word paper th...

Write a 750-1,000-word paper that analyzes the two leadership case studies, "Coach Knight: A Will to Win" and "Coach K: A Matter of the Heart." Address the following questions a

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