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 the correlation between realization factor, Can anyone please expl...

Can anyone please explain the correlation between Realization Factor, Capacity, Utilization, and Rolled Throughput Yield, please? Equations would also be nice.

Case -2 solve, after working for 30 years, ramjee somjee dutt opted for vrs...

after working for 30 years, ramjee somjee dutt opted for vrs and started a courier company and did very well in the first four years................plz solve

Explain correct name for the flower the michaelmass daisy, What is the corr...

What is the correct name for the flower the Michaelmass Daisy?

Soucing, advantages and disadvantages of parallel sourcing

advantages and disadvantages of parallel sourcing

Discuss what responsibility businesses towards environment, Environment Ple...

Environment Please respond to the following: •From the video, take a position on the ethical aspects of the logging industry on the local economies and the environment in the North

Explain generalized or specialized approach to work, To be a true strategi...

To be a true strategic partner, does HR need to take on a more generalized or specialized approach to work? Why?

Define elasticity of demand, In considering the price part of the 4Ps, and ...

In considering the price part of the 4Ps, and the customer demand aspect of that, I'd like you to leave this course knowing about "elasticity of demand". Can you explain how that c

Explain effectively manage supply risks, To effectively manage supply risks...

To effectively manage supply risks, the supply manager must: inform the corporate risk officer of a potential risk, await instructions, and implement the directive. Seek input from

Calculate the expected value, C and S Metal company produces stainless stee...

C and S Metal company produces stainless steel pots and pans. C and S can pursue either of two distribution plans for the coming year. The firm can either produce pots and pans for

Kanban scheduling system for lean and just in time, Kanban Scheduling Syste...

Kanban Scheduling System for Lean and Just in Time The ideal lot size is one - how many can we work on at one time? - usually one. Even in batch production, only one item in t

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