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Unformatted text preview: sales from a source outside the model. This enables us to see how the other model variables respond to these random demands (as might be found in the "real world"). In this case we can see that as sales increase stock decreases, but more importantly the processes of the model are under some form of control. If the sporadic changes are removed (or smoothed out) we would see that the norms for both variables are almost level. This model remains far too simple to be of use in the real world. A considerable amount of further development is necessary. Furthermore, every organisation with an inventory control system will be different. Stock demand, manufacturing rate, delivery rate and desired stock are Figure 4.10 A typical output from the simple stock/inventory model < previous page page_77 next page >...
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- Spring '11