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 what is the role of safety stock in an mrp system, 1) Discuss the m...

1) Discuss the meaning of MRP such as planned order release and scheduled order receipts? 2) Many practitioners currently update MRP weekly or biweekly. Would it be more valuabl

Access - customer satisfaction and service quality, Access - Customer Satis...

Access - Customer Satisfaction and Service Quality Involves approachability and ease of contact. It means: the service is easily accessible by telephone (lines are not busy an

Explain emotional intelligence a key factor to success, Emotional intellige...

Emotional intelligence; a key factor to success I want a 20 question survey for this topic, based on these 5 factors self-awareness, self-regulation, motivation, empathy, and socia

Explain simple regression analysis is a tool, Simple regression analysis is...

Simple regression analysis is a tool that characterize relationships between a _______________ and _____________________. regression partner, simple partner dependant variab

Production control, Production Control After planning the next manageri...

Production Control After planning the next managerial production function is to control the production according to the production plans because production plans cannot be acti

Which charts is used to monitor the total number of defects, Which of the f...

Which of the following charts is used to monitor the total number of defects per unit when a constant subgroup size is employed? s-chart c-chart p-chart u-chart

Explain interested in obtaining a measure of overall perform, Cunningham Pe...

Cunningham Performance Auto, Inc. modifies 375 autos per year. The manager, Peter Cunningham, is interested in obtaining a measure of overall performance. He has asked you to provi

Attitudes as well bargaining behaviours of the participants, Do you think t...

Do you think the attitudes and bargaining behaviours of the participants in collective bargaining negotiations are more or less important in the final outcome than economic conditi

Describe what are the different types of strategies, What are the different...

What are the different types of strategies? What are the differences among these strategies? How do you determine which type of strategy is most appropriate for your organization?

Basic queuing theory, 1. Consider a hot dog cart on a busy New York street....

1. Consider a hot dog cart on a busy New York street. Customers arrive about every 3 minutes. a. Discuss: without any additional information, what is a plausible queuing model to u

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