page_75 - Page 75 and may...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
< previous page page_75 next page > Page 75 and may inform us about stability in the model and therefore the "real world" situation. The idea is to set all variables at their steady-state value so that the model should run indefinitely at those values over time. Equation 4.1 shows how this can be achieved with the stock level equations. We begin to learn a lot more, however, when experimenting with the model through perturbations. Model response to disturbances allows us to consider the effects of a range of policy options, either options concerning planning new ways forward or dealing with unexpected changes. We could consider new ways forward by (and depending on the type of model) increasing production, diversifying products, reducing/expanding the size of the workforce, increasing quality standards, introducing new marketing and sales strategies, introduction of automated machinery, changing pricing policy, etc. Alternatively, some examples
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/21/2011 for the course MGT 03 taught by Professor Kasra during the Spring '11 term at Tanta University.

Page1 / 3

page_75 - Page 75 and may...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online