Illustrative inventory model: deliveries take two weeks, but a shop repeatedly orders more each day because its shelf stock is still low. What risk does the delay create?
Answer & explanation
Excess inventory when multiple earlier orders finally arrive.
The manager responds to today's visible shortage before earlier actions have taken effect. Outstanding orders accumulate and can later produce overshoot. The model shows why state information and pipeline delays both matter.
Thinking in systems
Chapter 2 · A Brief Visit to the Systems Zoo
AI reviewed · sources pending · version 9
Generally accurate according to an AI review. Sources and this book association have not been verified.
