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 might superior benefit from using e-catalogues, Bill and Farrah...

Bill and Farrah have been recently hired by Superior Stereo Systems, a cutting-edge manufacturer of stereo speakers. Both Bill and Farrah have been assigned to work on two product

Define the benefits to corporate america of having a global, Discuss the be...

Discuss the benefits to Corporate America of having a globally diverse workforce.

Explain ddi communications model, What`s the use of DDI communications mode...

What`s the use of DDI communications model most typically used by and for 1st level supervisors?

Explain tables of data that firedup will need, FiredUp, Inc is a small busi...

FiredUp, Inc is a small business owned by Curt and Julie Robards.Based in Brisbane, Australia, FiredUp manufactures and sellsFiredUp, a light-weight camping stove. Recall that Curt

Explain research process to start searching for participants, When is the b...

When is the best time in the research process to start searching for participants?

Supply chain management, explain the extend to which SCM is applicable to a...

explain the extend to which SCM is applicable to a service operation like Cruise int.

Describe ethical to reduce the number of employees, 1. Based on GM's ...

1. Based on GM's current condition, do you think it is ethical to reduce the number of employees? Why or why not?

Explain security professionals as technology advances, Identify potential e...

Identify potential ethical challenges that may be faced by security professionals as technology advances, applications become more mobile, and computer criminals become more innova

Alternative control chart constructions, Alternative Control Chart Construc...

Alternative Control Chart Constructions In this treatment of the subject, description has been of charts with both warning and action limits, and these limits calculated with

Explain the risk evaluation process, Discuss and describe the risk evaluati...

Discuss and describe the risk evaluation process in a simplified approach.

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