page_77 - sales from a source outside the model. This...

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< previous page page_77 next page > Page 77 Rate (stock cannot be sold if it is not available). Likewise, as Sales increase and the Delivery Rate remains the same, the Sales Rate will decrease. As Sales increase the Manufacturing Rate will also increase (with some delay), but this is influenced by the managers. As mentioned previously, we will determine the quantity of Stock Level needed (Desired Stock) and compare this to Sales Level which determines what the Change in Stock is. This in turn will offer the greatest "leverage" (influence) on the Manufacturing Rate. This completes the loop which determines the level of stock. The graph in Figure 4.10 is a typical output from a simple model like ours. The two variables Sales and Stock Level are almost reflective over time (i.e. as one variable increases the other decreases). The model includes a random number generator to simulate the influence of
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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 &quot;real world&quot;). 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 &lt; previous page page_77 next page &gt;...
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page_77 - sales from a source outside the model. This...

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