INDIAN INSTITUTE OF TECHNOLOGY

Date: FN/AN Time: Three Hours Sub No. 523005

Autumn Semester, 2000 Deptt: Industrial Engineering and Management

Third Year B. Tech in Industrial Engineering (Honours), Sub Name: SIMULATION

Instructions: Answer any four questions. AU questions carry equal marks.

Question 1

Using the numbers 27, II, and 128, as the values of Xo, a, and m, use multiplicative congruential
method to generate a sequence of twenty random numbers and hence a sequence of exponential
random variates.

Using a Q-Q plot, verify that the variates indeed approximate an exponential distribution,

Question 2

Generate random variates for the random variables having the following density functions:

(a) t{x) = I - 0.2 x, 0~ x Z5

2-0.2x, 5~x (10

"
(b) Second-order Erlang distribution with parameter ~= 2.

<C Geometric distribution where probability ofa success inany trial equals 0.4.

Question 3

(a) Travel time of an Operator has been time-studied (in minutes) as under:

0.04,0.54,2.4, 1.0,0.61,3.3,0.25,0.04,0.3, 1.1,

4.4, 0.2, 0.59, 1.7, 2.7, 3.6, 1.1, 0.64, 0.45, and 0.27.
'2.
Make a X -test to judge the adequacy of exponential distribution as a fit to the data. .The
following critical values of X'2-
for different degrees of freedom, I, 2, 3, 4, 5, 8, 9, 10. and for 5%
level of significance are given below:

3.84,5.99,7.81,9.49, ) 1.1, 22, 23.6, 25.2

(b) In five statistically independent replications of a queuing simulation model the following
values of mean queue length were obtained:

5, 10, 7, 15, and 4.

The mean queue length is observed in the real system as 8.

 Test the hypothesis that the simulation results are valid at the 5% level of significance. The
following critical values oft-statistic are available:

df
..
-'
10.025
3.18
'10.05
2.35
4 2.78 2.13
5 2.57 2.02

Question 4

Trucks carrying jute bales are to be ~nloaded at the godown. Two men unload a jute bale and
load one bale at a time on a trolley. The trolley operator carries the loaded trolley to the godown
ind unloads the bale at the foot of the bale stack. and returns to the truck with the empty trolley
lor loading. There are four trolleys nqw, with one operator for each trolley.

Ihe following mean values have been time-studied:

Time to unload a bale from the truck: 2 minutes.

Time to load a trolley: 0.75 minute.
Time to carry the loaded trolley: 5 minutes.
Time to unload the trolley: 0.5 minute
Time to carry the empty trolley: 3 minutes.
Waiting time of a trolley operator for loading: 0.5 minute

a) Visualizing the situation as a cyclic Poisson-exponential queuing problem, draw a sketch

highlighting the physical characteristics of the. problem.
;.: b) Give the flow of the simulation logic.
(c) How do-you validate this model?

Question S

(.1) Consider a classical predatory-prey model. Draw the reference mode of behaviour. Draw the
causal-loop and flow diagram for this problem. Justify why this model will be able to
generate the reference behaviour.

{) Draw flow diagrams to illustrate how you will model the following situations:

(i) Production rate decisions depend on past sales, order backlog, and inventory position.
(ii) Capacity order decision depends on demand forecast, present capacity, capacity
depreciation. and capacity on order. .

Cuestion 6

\ 'rite short notes on

(,) Simulators for skill training

(;;) Gaming simulation
(,) Verification and validation of simulation models
 Department Oflndustrial Engineering & Management
Indian Institute of Technology Kharagpur
End Term (Spring Semester) Examination, 2013
Subject: Simulation
Subject No: IM 31006
Total Marks: 50 Time: 3brs
Question 1 is compulsory and answer any four from the rest
Statistical Tables may be used

1. (a) Distinguish between model verification and validation in simulation. What is

calibration ofthe model in this context? Explain briefly.
(b) What is empirical distribution? Under what situation it is applicable?
(c) Use mixed congruential method to generate a sequence of three two digit random
'"'""--;<1'·-,'ili
number with Xo =37, a =..'7.,.f=2~and
. m =100. - .... ~

(d) Generate exponential random variate with a mean 1.0 for a given sequence of
random numbers 0.1036, 0.0422, 0.6597, 0.7965, 0.7696 2.5x4=10
2. (a) A sequence of random numbers are given below
0.40 0.84 0.95 0.18 0.13 0.92 0.57 0.77 0.30 0.71
0.42 0.05 0. 78 0.74 0.68 0.03 0.18 0.51 0.10 0.37
Based on Run test for (i) length of run up and down and (ii) number of run up and
down, determine whether the above sequence is such that the hypothesis of
independence can be rejected with level of significance, a = 0:05 5
(b) Develop a random variate generation scheme of for a triangular distribution with
range (1, 10) and mode at x ==4. Generate three random variates by using R1 =0.83,
R2 =0.24 and R3 = 0.57 5
3. (a) State clearly with examples the four steps in the development of a model of Input
data for Simulation study. When data are not available, how do you' proceed for
input modeling? 2+2=4
(b) The number of job related injuries per month was studied for an underground
mining operation. The values for the past 100 months were as follows.
Injuries per Month 0 2 3 4 5 6
Frequency of occurrence 35 40 I3 6 4 1

(i) Apply the Chi square test to these data to test the hypothesis that the
underlying distribution is Poisson. Use a level of significance of a = .05 2

1
 (ii) Apply the Chi square test to these data to test the hypothesis that the
distribution is Poisson with mean 1.0 Again, a = .05 2
(iii) What are the differences in part (i) and (ii) and when might each case arise? 2
4. (a) Distinguish between terminating Simulation and Steady state simulation. Give
two examples of each type of simulation. What are the common methods you employ
to minimize the initialization bias in the output estimate. 3+2=5
(b) A simulation model of a job shop was developed to investigate different
scheduling rules. To validate the model, the currently used scheduling rule was
incorporated into the model and the resulting output compared to observed system
behavior. From the previous record it was estimated that the average no of jobs in the
shop was 22.5 per day. Seven independent replications of the model were run, each of
30 days duration, with the following results for average number of jobs in the shop
per day 18.9, 22.0, 19.4, 22.1, 19.8, 21.9, 20.2
~ -
Develop and conduct a statistical test to determine if the model output is consistent
with system behavior. Level of significance a = 0.05 5
5. (a) The results of four independent run of 2 hour duration of simulated queuing
problem are as follows
Runs Utilization Average system time (in
minutes)
0.808 3.74
2 0;875 4.53
3 0.708 3.84
4 0.842 3.98
Suppose that management desired 95% confidence in the estimate of mean system
time and error allowed was 0.4 minute. Using the same initial sample size of 4,
determine the required total sample size. 5
(b)What are types of errors you may come across in model validation? Explain them
clearly. Why is power oftest an important consideration for hypothesis testing? 3+2 =5
6. (a) What is future event list? Explain the event scheduling technique I time advance
algorithm technique. 4
(b) Explain with examples (i) Acceptance rejection technique (ii) Convolution
method 4
(c) State the advantages and disadvantages of Simulation. 2

********
2
Table of the_ Chi-square Distribution
~a
xt.t;"
a= 0.995 0.99 0.98 0.975 0.1>5 0.90 0.80 ll.~O 0.10 0.05 0.025 0.02 0.01 n:i~o:iiiiT-
..-=-.0.:•.
v"" I O,OO(J()lO) 0.000157 0.00062.! O.UOOOBl 0.00393 0.0158 O.ll64l 1.642 2.706 3.841 5.024 5.412 1>.6)5 7 .8~-10.827 V=l
2 0.0100 0.0201 0.0404 0.0506 0.103 0.211 0.446 3.~1\) 4.605 5.991 7.378 7.824 9.110 1o.s<n 13.815
3 0.0717 0.115 0.185 0.216 0.352 0.584 1.()()5 4.642 6 ..:!51 7.815 9.348 9.837 11.."145 12.838 16.268 ~
4 0.207 0.2!17 0.429 0.484 0.7"11 Ul64 1.649 5.989 7.779 9.488 11.143 11.668 1?>.277 14.1160 18.465 4
s 0.412 0.554 0.7!i2 0.831 1.145 1.610 2.343 7.289 9.2:t6 11.070 12.832 13.388 15.086 16.750 20.517

6 0.676 0.872 1.134 1.237 1.635 2.204 3.070 8.558 10.645 1:!.592 14.449 15.033 16.812 18.548 22.4!i7 6
7 0.989 1.239 1.564 1.690 2.167 2.833 3.822 9.803 lZ.017 14.067 16.013 16.622 18.475 20.278 24.322 7
8 1.344 1.646 2.032 J.l80 2.733 3.41>0 4.51>4 11.030 13.362 15.507 17.535 18.168 20.0\lO :tJ.Q5S 26.125 8
9 1.735 2.088 2.532 2.700 3.325 4.168 5.380 12.242 14.684 16.919 1<l.02J 19.679 21.666 23.581> 27.877 9
10 2.156 2.558 3.059 3.247 3.940 4.865 6.179 13.442 15.1187 18.307 20.483 21.161 2.1.209 25.188 29.588 ttl

II 2.603 3.053 3.61)9 ·3.816 4.575 5.578 6.989 14.6~1 ' 17.275 19.675 21.920 22.618 24.725 26.757 :<1.264 II
12 3.074 3.571 4.178 4.404 5.226 6.304 7.807 15.812 18.549 21.026 23.3:17 24.054 26.217 28.300 32.909 IZ
13 3.565 4.107 4.765 5.009 5.892 7.042 8.634 16.985 19.812 22.362 24.736 25.472 27.688 29.819 >4.528 1:1
14 4.075 4.660 5.368 5.629 (;.571 7.790 9.467 18.151 21.064 23.685 26.119 26.873 29.141 31.J19 36.123 14
15 4.601 5.221> 5.985 6.262 7.261 8.547 11U07 111.311 .::2.307 24.9\16 27.488 28.25'1 30.578 .12.110 I "!>7.697 15

16 5.142 S.8t2 6.614 6.908 7.<162 \U12 11.152 20.465 23.542 26.296 28.845 2'1.6.\3 32.000 .\4.267 ~9.252 16
17 5.697 6.408 7.255 7.564 8.672 10.085 12.002 21.615 24.76Q 27.587 30.191 ~0.995 .13.409 35.718 4tl.7QO 17
18 6.265 7.015 7.906 8.231 9.300 10.865 12.857 22.760 25.989 28.869 )1.526 32.346 34.805 37.156 4Z ..lll 18
19 6.844 7.633 8.567 8.907 10.117 11.651 13.716 23.900 27.204 30.144 32.852 33.687 .16.191 38.582 43.820 19
20 7.434 8.260 9.237 9.591 10.851 12.443 14.5711 25.038 J8.412 ', 31.410 .\4.170 35.020 37.~66 39.'Xl7 4~.315 2{)
I
46.797
~·
21 8.034 8.8!17 9.915 10.283 11.591 13.240 15.445 26.171 29.615 32.671 35.479 :.16,343 38.932 41A01
22 8.643 9.542 10.600 10.982 12.338 ,14.041 16.314 27.301 30.813 ."43.924 36.781 37.659 40.28!) 42.796 48.268 2:
23 9.260 10.196 11.293 1'\.688 't:l.091 14.848 17.1117 28.429 32.007 35.172 38.076 3!1.91>8 41.6~8 44.181 49.728 2:'1
24 9.886 10.856 11.992 12~01 13.848 15.6~9 18.06: 29.553 33.196 .\6.41~ 39.364 40.270 42.980 45.558 51.179 24
2S 10.520 11.524 12.697 u . .fo 14.611 16.473 18.940 30.675 34.:<82 37.652 40.646 41.566 44.314 46.928 S2.6JO 25

26 11.160 12.198 D.409 '

13.844 15.371> 17.2<l2 19.820 31.7<,15 35.563 :'18.81!5 41.923 42.856 4!i.642 48.290 54.052 26
27 11.808 12.879 14.125 14.573\ 16.151 18.114 20.7(1:1 32.912 36.741 40.113 43.11>4 44.140 46.963 49.645 55.476 27
28 12.461 13.565 14.847 15.308 16.1>21! 18.939 21.581! 34.027 37.916 41.337 44.461 45.41<1 48.~78 50.993 56.893 28
29 l.l.l21 14.256 15.574 16.047 17.708 19.768 22.475 35.139 39.087 42.557 45.722 46.693 49.588 52.336 58.302 29
30 13.787 14.953 16.306 16.791 18.4.93 20.599 23.364 36.250 40.256 43.773 46.979 47.962 50.892 53.672 59.70.1 30

40 20.706 2J.164 23.838 :!4.433 2(;.509 29.051 32.345 47.269 51.805 55.759 59.342 (;Q.436 63.691 66.766 73.40~ 40
so :!7.91>1 211.707 31.664 >2.357 :\4.764 ~7.6119 41.449 58.164 63.167 67.505 71.4c20 72.613 76.154 71>.490 H6.661 50
60 3!1.535 37.485 39.61>9 40.482 43.188 46.4"~ 50.641 68.972 74.397 79.082 83.298 84.580 88.379 91.952 99.607 60
70 4:3.275 45.442 47.893 48.758 s 1.739 SS.329 S9.898 79.715 85.527 90.531 1>5.023 96.388 100.42S I0-1.21S 112.317 70
80 s 1.171 5J.539 56.213 57.153 60.391 64.278 69.207 90.405 96.578 101.880 106.629 108.069 112.329 ll(o.J21 124.839 80

90 59.196 61.754 64.634 65.646 69.126 7.1.291 78.55.8 101.054 107.565 113.145 118.1.1() 119.(>48 124.116 128.299 137.208 90
100 67.327 70.065 73.142 74.222 77.929 82.358 87.945 III.Co67 118.498 124.342 129.561 131.142 135.807 140.170 149.449 100

TABLEA·2
Critical values of t

tl luJn ,......, 1.= (tnu f.t'IIJI v

:z 3.07R 6.314 12.706 31.821 63.657 1

3 1.886 2.920 4.303 6.~)65 9.925 2
4 1.638 2.353 3.182 4.541 5.R41 3
5 1.533 2.132 2.776 3.747 4.604 4

6 1.476 2.015 2.571 3.365 4.032 5

7 1.440 1.943 2.447 3.143 3.707 6
g 1.415 1.895 2.365 2.998 3.499 7
9 1.397 1.860 2.306 2.896 3.355 8
10 1.383 1.833 2.262 2.821 3.250 9
11 1.372 1.8U 2.221! 2.764 3.169 10
12 1.363 1.796 2.201 2.718 3.1116 II
13 1.356 1.782 2.179 2.681 3.055 12
14 1.350 1.771, 2.160 2.6.'i0 3.012 13
1.345 1.761 2.145
..· 2.624 vm 14
15
16 1.341 1.753 2.131 2.602 2.947 15
17 L:l37 1.746 2.120 2.58:\ 2.921 16
18 1.:\33 1.740 2.110 2.567 2.898 17
19 1.330 1.734 2.10l 2.552 2.878 18
20 1.328 1.729 2.093 2.539 2.861 19

21 1.325 1.725 2.086 2.528 2.845 20

22 1.323 1.721 2.080 2.518 2.831 21
23 1.321 I. 717 2.074 2.508 2.lH9 22
24 1.319 1.714 2.069 2.500 2.807 23
25 1.318 1.711 2.064 2.492 2.797 24

26, 1.316 "1.708 2;060 2.485 2.787 25

v 1.315 1.706 2.056 2..479 2.TI9 26
28 1.314 1.703 2.052 2.473 2.m 27
29 1.313 1.701 2..{148 2.467 2.76.1 28
30 1.311 1.699 2:045 2.462 2.756 29
1.282 1.645 1.960 2.326 2.576 inf.
inf.
 Areas Vnde, the St.andard Nonnat Curve
z 6J)(l 0.01 0.02 0.03 0.04 o.os o.oo 0.07 0.08 0.09
o.o 0.0000 0.0040 0.0080 0.0120 O.Ot60 (}.0199 0.0239 0.0119 0.0319 0.0359
O.l .0398 .0438 .0478 .OS17 .OSS1 .0596 .0636 .0615 .0714 .0153
0.2 .0793 .0832 .0871 .0910 .0948 .0981 .1026 .Ul64 .1103 .l141
0.3 .1179 .1217 .12S.5 . 1:293 .1331 .1368 .1406 .1443 .1480 .lSI?
0:.4 .1SS4 .lS9l .1628 .1664 .1700 . l136 .1172 .1808 J844 J879
o.s .l9U .t9SO .l9S,S .2019 .2054 .2088 .2l23 .:2lS7 .ll90 .2224
0.6 .l2S1 .229! .2324 .2351 .2339 .2422 .24S4 .2486 .2517 .2549'
0.1 .2580 .260 .2642 .2673 .2704 .2734 .2764 .2194 .2823 .2152
0.8 .2831 .2910 .2939 .2961 .1995 .3023 .30.51 .3078 .3106 .3133'
0.9 .3159 .3186 .3212 .3238 .3164 .3289 .3315 .3340 .3365 .3389
1.0 .3413 .3438 .3461 .348S .JS08 .353\ .3SS4 .3S7'7 .3S99 .362]
1.1 .3643 .l66S .3686 .3708 .3129 .3749 .3770 .3190 .l8JO .3830
1....."'l .3849 .3869 .3888 .3907 .3925 .39'44 .3962 .3980 .3997 .401S
1.3 .4032 .4049 .4066 .4082 .4099 .411S .:4131 .4147 .4162 .4lT7
1.4 ~419:2 .4207 .~ ,·4236 .4251 .4ltS .4279 .4292 .4306 .4319

1.5 .4332 .434$ A3S7 .4370 .4382 .4394 .4406 .4418 .4429 .4441
1.6 .44S:2 .4463 A474 .4484 .449S .4SOS .4SIS .4Sl5 .4535 .454$
1.1 .4SS4 .4564 .4S73 .4Si2 .4591. .4599 .4608 .46l6 .~2S .463:3
1.8 .4641 .4649 .4656 .4664 .4611 .467& A6i6 .4693 .4699 .4106
1.9 .4713 .4719 .4726 .4732 .4733 .4744 .4750 .47S6 .4761 .4767

2.0 .4772. .4778 .4783 .4738 .4793 .4798 .4803 .4808 .41!2 .4817
2.1 .4821 .4816 .4SJ() .4834 .4838 .4842 .4846 .4850 .48S4 .457
2.2 .4861 .4864 .4868 .4871 A81S .4878 .4881 .4884 .4887 .48'90
2.3 .4393 .4896 .48'98 .4901 .4904 .4906 .4909 .4911 .4913 .4916
2.4 .4918 .4920 .492l .4925 .4927 .4929 .4931 .4932 .4934 .4936
2.5 .49l8 .4940 .4941 .4943 .4945 .4946 .4948 .4949 .4951 .4952
2.6 .49SJ .49SS .4956 .4957 .4959 .4960 .4961 .4962 .4963 .4964
2.7 .496S .4%6 .4967 .4968 .4969 .4970 .4971 .4912 .4973 .4914
2.-8 .4974 .4975 .4976 .4971 .4977 .4978 .4979 .4919 .4980 .4981
2.9 .4981 .4982 .4982 .4983 .4984 .4984 .498$ .:4915 .4986 .4986
3.0 .4987 .4987 .4987 .4988 .4988 .4989 .4989 .4989 .4990 .4990
3.I .4990 .499l .4991 .499'1 .499l .4992 .4992 .4992 .4991 ~4993
3.2 .4993 .4993 .4~ .4994 .4994 .4994 .4994 .4995 .4995 .4995
3.3 .4995 .499S .4995 .4996 .4996 .4996 .4996 .4996 .4996 .4997
3.4 .4997 .4997 .4997 .4997 .4997 .4997 .4991 .4997 .4991 .49tl
3.6 .4998 .4998 .4999 .4999 .4999 .4999 .4999 .4999 .4999 .'4999
3.9 •.sooo
SCJLlf'C.e': A~ by pennission from $talisrl<td Merlwtb by Gtatge W. Sn~or •and WRiilm 0. C~ ib:tb editioll
(\!) 1967 by The Iowa Swc Univcrs'ty Pn::ss~ A.~nct. low.. p. :548.

4
 A
m INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR
End-Spring Semester 2017-18
----------------------------------------------------------------------------------------------------------------
Date of Examination: Session (FN/ AN) Duration 3 hrs Full Marks 50
Subject No.: IM31006 Subject Name: SIMULATION
Department/Center/School: Industrial and Systems Engineering
Specific charts, graph paper, log book etc., required: None
Special Instructions (if any): Answer Any Five questions

Question 1.
A newsboy buys papers at Rs. 3.30 each and sells them at Rs. 5 each. Newspapers not sold at
the end of the day are sold at scrap for 50 p. each. There are three types of newsdays - good,
fair, and poor - with probabilities of 0.35, 0.45, and 0.20 respectively. The distribution of
papers demanded each day is given below.
Demand Probability Distribution
Demand Good Fair Poor Use the following random
40 0.03 0.10 0.44 digits:
50 0.05 0.l8 0.22 For type of newsdays: 94, 77,
60 0.15 0.40 0.16 49,45,43,32,49,00,16,24
70 0.20 0.20 0.12
For demand: 80, 20, 15, 88,
80 0.35 0.08 0.06
98,65,86,73,24,60
90 0.15 0.04 0.00
100 0.07 0.00 . 0.00

If the newsboy purchases 70 newspapers a day, Make a siiuulatiou experimeut for 10 days
to find out the following:
i) The number of occasions for which the newsboy will have excess demand, lower
demand, and demand of exactly 70 newspapers.
ii) His total profits for the period of 10 days.
iii) His lost profits during the period due to excess demand.
(10)
Question 2.
a) A repairman is to be hired to repair machines that break down following a Poisson
process, with an average rate of 4 per hour. The cost of non-productive machine is Rs. 9
per hour. The company has the option of choosing either a fast or a slow repairman. The
fast repairman charges Rs. 6 per hour and will repair machines at an average rate of 7 per
hour. The slow repairman charges Rs. 3 per hour and will repair machines at an average
rate of 5 per hour. Which repairman should be hired and why?

b) Customers arrive obeying Poisson distribution at the rate of 10 per hour to a railway
counter for enquiry purposes. Other customers arrive (again Poisson distributed) at a
ticket-booking counter at the rate of 20 per hour. The exponentially distributed service
time in each counter is 2 minutes per customer. Show, in terms of the average time spent
by a customer in the system, the improvements that can be achieved by pooling of the
resources (That is both counters doing both query answering and ticket booking).
(5+5)
Question 3.
Find expressions for Number in the System (L), Number in Queue (Lq) and Number in non-
empty queue (Lq.) dor a single server MIMII-FCFS/oo/oo queuing system from the first
principles, e.g. starting with differential equations. Also draw relevant rate diagram.
(10)
Question 4.
a) Find Random Variates for:
i) Exponential Distribution
-(x/a)p
ii) Weibull Distribution with cdf: F(x) = 1 - e , x >= 0; Shape parameter a = 2
and Scale parameter ~ = 5.
b) A machine shop handles tool repairs in a large company. As each job arrives in the shop,
it is assigned a priority based on urgency of the need for that tool. Requests for repair can
be described by a Poisson distribution. Arrival rates are: r al = 2 per hour (first priority
jobs), ra = 2 per hour (2nd priority jobs), and ra3 = 1 per hour (last priority jobs). The
service rate is one tool per hour for each server, and there are six servers in the shop.
Develop a simulation scheme to determine the following:
i) System utilization
ii) The average time a tool in each of the priority classes will wait for service
Hi) The average time spends in the system for each priority class
iv) The average number of tools waiting for repair in each class
(4+6)
Question 5.
a) Suppose we would like to determine the mean waiting time of customers in from of a
railway counter. We have collected data for arrival time as well as service time of
individual customers over a period of time. We would like to carry out simulation for
obtaining WT - the mean waiting time.
Discuss, how you will improve the efficiency of the simulation by variance reduction
with the help of:
i) Control variate method
ii) Using antithetic sampling
b) In a small production shop, production of gear blanks per shift has random fluctuations.
The management wishes to estimate the average shift production within ±1O gear blanks
of its actual average. The shift production has a standard deviation of 72. Find out the
length of the simulation run for which one needs to generate shift-wise production of the
gear blanks with a confidence level of i) 96%; ii) 98%
Use the following z-score percentile table.
1Percentile 1 1 2 3 4 5 6 7 8 9 10
1 z-Score 1-2.326 -2.054 -1.881 -1.751 -1.645 -1.555 -1.476 -1.405 -1.341 -1.282
(6+4)
Question 6.
The production process of a plant uses a certain raw material. Exogenous influences
determine the usage rate of this material. To ensure continuous production, the company
keeps an inventory of the raw material. A supply delay of 5 months occurs between the
ordering of additional raw material and its arrival in the inventory. In an attempt to guard
against inventory shortages, the management has decided to employ the formal policy of
ordering exactly the amount of material consumed, i.e. order rate = usage rate. Assume the
exogenously determined usage rate increases linearly with time.
a) Draw a Flow Diagram and a Causal Loop Diagram.
b) Identify the Feedback Loop along with its Polarity.
c) Develop System Dynamics Equations.
d) Starting with a non-zero inventory, how will the formal policy work out when faced
with growth in usage? Include a sketch of inventory over time in your answer.
(4-12+2+2)