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 similarities and differences of medicare, Explain the similari...

Explain the similarities and differences of Medicare and Medicaid managed care plans by comparing and contrasting the following three issues: Strengths, weaknesses and incentives b

Define deming and crosbys views, Compare and contrast Deming and Crosbys vi...

Compare and contrast Deming and Crosbys views on the cost associated with a lost customer.

Describe the difference between consumer products, Explain the difference b...

Explain the difference between consumer products and business products. Why are some products difficult to categorize as one or the other? Give an example of a business product, a

#titleproductivity in service organization.., what are the strategies to bu...

what are the strategies to build productivity in service organizations

Explain terms labor, The Stone Company produces three sizes of window fans:...

The Stone Company produces three sizes of window fans: small, medium, and large. The manager has formulated an LP model for fan production: maximize 6 x1 + 8 x2 + 5 x3 (profit) sub

Describe project should be clearly explained, The "ends" of the project sho...

The "ends" of the project should be clearly explained, measured, and communicated, prior to the "means" being decided

Describe mpc can run independent of the operation plan, Which of the follow...

Which of the following is true? MPC can run independent of the operation plan. Business failure can result from poor MPC performance. In PAC, order release directly affect

Explain situational approaches to leadership integrate goals, How can situa...

How can situational approaches to leadership integrate goals to increase the effectiveness of your organization?

HIM Functions, You have been hired as the Director of HIM for Runnels-Popla...

You have been hired as the Director of HIM for Runnels-Poplar General Hospital, which is a new 250-bed facility that opens in six months. You are responsible for determining and de

Explain the factors affecting motivation, Explain the factors affecting mot...

Explain the factors affecting motivation . Factors influencing motivation: Achievement-Personal satisfaction in problem solving and job completion. Advancement-Promot

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