Information

This information is part of the Business Simulation Library (BSL).

In this model we extend the introductory example →SimpleProductionChain by including the rate of scrapping in determining the rate of shipping. We simply assume, that whatever is scrapped will immediately be replaced by a new product.

Since this introduces some variation in the rate of shipping, we need to have an adequate policy to determine the production rate. In this case we make use of a policy component called →FirstOrderStockAdjustment that can be found in the package. It simply determines the rate of inflow needed to keep a stock at a desired level, given the current amount in the stock and the (perceived) rate of outflow from the stock.

Here we would like to keep the inventory at a desired level of 100 units.

Model Output

The current inventory and the installed base.

The current rates of producing, shipping, and scrapping.

	modelOutput	Type: ModelOutput Description: Main output for the model

Components (12)

	modelSettings	Type: ModelSettings
	inventory	Type: MaterialStock Description: Finished goods inventory
	shipping	Type: Transition Description: Shippment to the customer at an exogenous rate
	producing	Type: Growth Description: Production at a constant rate
	installedBase	Type: DelayN Description: Product stays in use for around 5 years
	scrapping	Type: OutflowDynamicStock Description: After its useful life has expired, products will be discarded
	firstTimePurchases	Type: RampInput Description: Ramping up from 10 to 100 units per month starting at 6 mo for 18 mo
	usefulLife	Type: ConstantConverterTime Description: Average time a product remains in use
	shippingRate	Type: Add_2 Description: The total rate of material that is being shipped to customers
	productionRate	Type: FirstOrderStockAdjustment Description: Policy to determine rate of production
	desiredInventory	Type: ConstantConverter Description: The constant level of inventory we wich to maintain
	cloud1	Type: Cloud

SimpleProductionChainII

Diagram

Information

Model Output

See also

Connectors (1)

Components (12)

Revisions