Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
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.
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.
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.
why do we need capacity cushion
Imagine yourself in a situation of being encouraged by colleagues to inflate your expense account. What factors do you think would influence your choice? Explain
Ultimate Objective 1. Manufacturing costs: The unit cost of the product should be estimated carefully and every effort should be made to stick to the cost standards. For
Definition of a Project" •According to the Project Management Body of Knowledge (PMBOK), explain one of the major knowledge areas and why it is important to project management. Eva
In the table given below the Distribution Manager is expected to service these DCs as per the demands placed. If the actual sales after completing week one is as follows, what woul
Chris Lane, the head professional at Royal Oak Country club, must develop a schedule of matches for the couples' golf league that begins its season at 4PM tomorrow. Eighteen couple
What is the role of the Board of directors for a corporation
Please give a detailed explanation on the following scenario: You are a swap dealer and know that XYZ County finance director is clueless about how to conduct interest rate risk ma
A _____ is a group of products that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the s
Question : Show origin of Collaborative Planning, Replenishment, and Forecasting (CPFR) Origin from CFAR How CFAR standard was renamed CPFR Continuing improvements
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd