page_76 - Rate, acting positively on the Stock Level (i.e....

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< previous page page_76 next page > Page 76 (see Figure 4.9). Note that the following example has been annotated according to STELLA conventions. Stock Level In Figure 4.5 we put Demand as an influence on Manufacturing Rate and back to Stock Level, but in practice this is too simple and provides us, the managers, with little information from which to make any judgement. It is necessary to introduce an auxiliary equation that compares Desired Stock and the actual Stock Level, which we will call Change in Stock. This can then be used to control the Manufacturing
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Unformatted text preview: Rate, acting positively on the Stock Level (i.e. it will tend to increase its level). In turn the Delivery Rate will be determined by the Stock Level which acts negatively on it (i.e. it will tend to reduce its level). Sale s The Sales and Sales Rate are external influences (demand) on the Stock Level. The Sales Rate will, in some way, be determined by the Delivery Figure 4.9 A simple stock/inventory model < previous page page_76 next page >...
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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.

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page_76 - Rate, acting positively on the Stock Level (i.e....

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