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 the logistics manager of the future, Thinking back upon this course...

Thinking back upon this course's content, please discuss the authors' assertion: "The logistics manager of the future will be much more of a change leader and much less of a techni

Do you think taylor''s position is similler applicable today, 1. Do you thi...

1. Do you think Taylor's position is equally applicable today? 2. Looking at Taylor's and Grayson's remarks, whick were made approximately 73 years apart, one has to wonder what

Define construct the linear programming model, A farmer has 10 acres to pla...

A farmer has 10 acres to plant in wheat and barley. He has to plant at least 7 acres. However, he has only $1200 to spend and each acre of wheat costs $200 to plant and each acre o

Explain how does the pursuit of outsourcing align, Should Galanz continue t...

Should Galanz continue to expand its capacity through outsourcing arrangements? How does the Pursuit of outsourcing align with its operations strategy?

Desicion making chapter 1, analyze the decision tree in figure A.8 what is ...

analyze the decision tree in figure A.8 what is the expected payoff for the best alternative? first be sure to infer the missing probabilities

Explain units of output per dollar of input, A hamburger factory produces 4...

A hamburger factory produces 40,000 hamburgers each week. The equipment used costs $5,000 and will remain productive for 4 years. The labor cost per year is $9,500. a. What is the

Developing an layout, What is the difference in strategy in developing an i...

What is the difference in strategy in developing an initial layout for a new facility as comparedn to the strategy in improving the layout of an existing facility?

Explain a university web server has five main components, A University Web ...

A University Web server has five main components each with the same reliability. All five components must work for the server to function as intended. If the University wants to ha

Explain organizational strategy is analyze organizations, Organizational St...

Organizational Strategy is Critically evaluate information from core business functions to enhance organizational knowledge, how would you assess your mastery of this competency?

Explain differentiate between validity and reliability, Differentiate betwe...

Differentiate between validity and reliability of a selection test. In other words, provide definitions of (1) validity and (2) reliability of a test.

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