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 how can fit be assessed, Should the applicants be selected primaril...

Should the applicants be selected primarily on the basis of their ability or personality or fit? • How can fit be assessed?

Explain the three steps in completing a job analysis, As an entrepreneur, h...

As an entrepreneur, how would you go about doing a job analysis for the first employee you are going to hire in your new business? What are the three steps in completing a job anal

Explain forecasting methodologies, Question : What are the common chara...

Question : What are the common characteristics amongst the several forecasting methodologies / techniques? The different techniques make a common assumption that what happen

Scheduling - aggregate planning, Scheduling - Aggregate Planning Mean...

Scheduling - Aggregate Planning Meaning and Definition Scheduling may be defined as the assignment of work to the facility with the specification of times ,and the sequence

Find what will the productivity of the bakery, If charles lackey's utility ...

If charles lackey's utility costs remain constant at $500 per month, labor at $8 per hour, and cost of ingredients at $0.35 per loaf, but Charles does not purchase the blender sugg

Explain what are average weekly total costs, Given the following data for a...

Given the following data for a particular inventory item: Usage 500 units/week Ordering $40 per order Carrying Cost $.01 per unit per week Lead Time 3 weeks Price $.50 per unit a.

Explain decision alternative and state of nature, A payoff a. is always mea...

A payoff a. is always measured in profit. b. is always measured in cost. c. exists for each pair of decision alternative and state of nature. d. exists for each state of nature.

Explain who was the first non royal to appear on a uk stamp, In 1964 who wa...

In 1964 who was the first non royal to appear on a UK stamp

Compensation and benefits employer can offer their employees, Compensation ...

Compensation and benefits; what are all that an employer can offer their employees? What kind of compensation? What kind of benefits?

Method describe how much one person is on a given dimension, Which statemen...

Which statement about comparative of performance appraisal is false/1. it is a method that seek to identify one relative standing among those being rated/2.this method indicate tha

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