Paul, H. with Karen S. Eichman,"Capacity Adjustments in a Textile Division:Management Response to a System Dynamics Study", 1984
ua435
A division of a large textile company was chosen as the focus of a system dynamics study to determine how management would respond to any capacity adjustment problem. The company produces fabrics for household as well as industrial uses and the annual sales of the company are several billion dollars. The division under study produces yarn and piece dyed draperies, mattress tickings, and upholstery fabrics. The four major manufacturing processes in the division are spinning, yarn preparation, fabric formation and fabric dyeing and finishing. Although not aimed at any particular perceived problems, the study was undertaken with two purposes, firstly to develop a system dynamics model that would describe the performance of the division and secondly to use the mode to investigate the effects of demand changes on various capacity adjustment policies practiced in the division. The study includes interactions among a large number of factors in forecasting and inventory control, raw material supplies, employment, and production capacity. These factors related to some ten points and four processes of the division. Data and other information have been collected by questionnaires and interviews with management. The model has been tested for its validity in representing the actual operations. The model is now being used in testing some of the policies in response to change in customer order rate.
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