SimpleProductionChainIII

Further extending the first example to explain new product diffusion

Diagram

Information

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

In this final extension of the introductory model SimpleProductionChain we now replace the Ramp component for the first-time purchases with a model of new product diffusion.

We are assuming that there are 10 initial customers and a stock of 250'000 potential customers that will be turned into customers by "word-of-mouth" only—for now we will assume that there is no growth or decline with regard to this potential. There is a constant contactRate of 10 people per month and the adoptionFraction is assumed to be 2%.

Model Output
  • Potential customers and customers during the simulation.

  • The current inventory and the installed base.

  • The current rates of producing, shipping, and scrapping.

See also

Tutorial.StrategicBusinessSimulation, SimpleProductionChainSimpleProductionChainIIDiffusion

Connectors (1)

modelOutput

Type: ModelOutput

Components (13)

modelSettings

Type: ModelSettings

inventory

Type: MaterialStock

Description: Finished goods inventory

shipping

Type: Transition

Description: Shipments to the customers

producing

Type: Growth

Description: Production of a durable good

installedBase

Type: DelayN

Description: Products in use

scrapping

Type: OutflowDynamicStock

Description: Discarding of products (which will be replaced by new ones)

cloud1

Type: Cloud

totalOrders

Type: Add_2

potCustomers

Type: MaterialStock

Description: Potential customers

wordOfMouth

Type: Diffusion

Description: Bass diffusion model for a word-of-mouth process

customers

Type: MaterialStock

Description: Initial customers (early adopters)

productionPlanning

Type: FirstOrderStockAdjustment

desiredInventory

Type: ConstantConverter