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 find the shortest route from node 1 to node 6, Find the shortest r...

Find the shortest route from Node 1 to Node 6. From Node To Node Distance 1 2 150 1 3 200 2 3 100 2 4 200 2 5 50 3 4 350 3 5 300 4 6 100 5 6 100 Which Answer is it? 300 450 550 650

Explain what percentage of time are the clerks idle, The parts department o...

The parts department of a large automobile dealership has a counter used exclusively for mechanics' requests for parts. The time between requests can be modelled by a negative expo

In a transportation problem only used in a maxmin problem, In a transportat...

In a transportation problem, shipments from a dummy origin A Should be given a small cost to maximize their use B Should be given a large cost to prevent their use C Ar

AP2, Play now? Play later? You can become a millionaire! That''s what the...

Play now? Play later? You can become a millionaire! That''s what the junk mail said. But then there was the fine print: If you act before midnight tonight, then here are you cha

Defend your choice and discuss the strategy, Pick a product that you believ...

Pick a product that you believe would be beneficial for line extension. Justify your choice and discuss the strategy you would adopt for the new product

Compute number of workers needed for each department, Calculate number of w...

Calculate number of workers needed for each department to produce 2000 units per day and complete the table below to assist you in answering questions e.)è?j.). (e) What is the tot

Multiple activity chart, how to do a multiple activity chart on making pota...

how to do a multiple activity chart on making potatoe chips

Explain a linear trend equation, Value: 15.00 points Problem 3-2 National S...

Value: 15.00 points Problem 3-2 National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows: Month Sales (000) Units Feb. 17 M

Explain forecast including trend for the month, A manufacturer of printed c...

A manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. At the end of December, the company wishes to forecast sal

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