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

Why raw material dell has on hand at the end of the year, Using the data fr...

Using the data from the Dell Computer annual report determine how Dell calculated the four days supply of raw materials. Do you think four days supply is a valid representation of

Assignment on erp jit, how to write a good assignment report on erp jit

how to write a good assignment report on erp jit

Criteria for a good layout, Criteria for a Good Layout Maximum Fl...

Criteria for a Good Layout Maximum Flexibility: A good layout will be one which can be rapidly modified to meet changing circumstances. In this context particular attent

Explain if the waitress sues the employer, 1. A company hires a file clerk ...

1. A company hires a file clerk but does not inquire into his criminal history. In fact, he has had several convictions for driving while intoxicated. On a lunch break, he gets dru

Identify the most vital factors in each perspective, Summarize the classica...

Summarize the classical, behavioural and quantitative perspectives on management Identify the most important factors in each perspective

OPERATION REASERCH.., #question.six operators are to be assinged with 5 job...

#question.six operators are to be assinged with 5 jobs with cost of assingment in rs given in the matrix below 1 2 3 4 5 62526 25877 78698 62345 93897 47468

Explain how else might national origin discrimination occur, National origi...

National origin discrimination is prohibited against a job applicant or employee. Besides discriminating against the job applicant or employee directly, how else might national ori

Describe different roles people play in work groups, Please discuss differe...

Please discuss different roles people play in work groups? Please share the role you predominantly played in project or work groups. Make this a very short answer

Compute the upper and lower control limits, Mike is preparting the x-bar ch...

Mike is preparting the x-bar chart and the R chart for Uncle Ben's 2lb. box rice packaging line. Using the standard sample size of 9 items. Mike found the average range is .02 l

Define job evaluation, Define job evaluation. Definition: Job evaluatio...

Define job evaluation. Definition: Job evaluation is a systematic process of evaluating various jobs of an organization. Depending on the characteristics and needs of a job, jo

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