Computational Perspectives IV

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Adding Informational Links

Note: in order to run the simulation referred to in this slide, go here, to the Java Applet version. You will be directed to download the latest version of the Java plug-in.

In the previous slides, we hinted at a solution to the problem, a solution which we finally present to you for scrutiny. By linking Producer and Wholesaler directly to Consumer, we allow them to supply the necessary goods in a more timely fashion. As a result, Retailer accumulates a back order only for the brief time period needed for extra goods to reach it from Producer.

You may wish to see what happens when we substitute in the original "step" function for consumer demand. To do that, copy and paste the following expression into the text field: (if (>= (time) 2) 6 4). Then press "Restart" and "Go" several times. In this case, there does seem to be a persistent back order acquired by Retailer. Intuitively, this happens because she still has no informational link with Producer. Thus, Producer never finds out about Retailer's predicament despite accurately matching consumer demand.

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