Figure 4.
This illustration presents a system dynamics model depicting the feedback loop related to product demand. It includes components such as Product Final Demand, Total Product Demand, Actual Market Share, Sales Forecast, and various stocking policies like Product Min and Max Stocking Policy and Product stock Green Band (Min and Max Level). Arrows indicate the flow of interactions and influences among these components. The loop showcases a relationship where changes in one element, like Sales, feedback into Product Inventory and subsequently affect Product Final Demand. Additionally, there are terms like Ideal Production Rate of Product and Final Production Rate of Product, presenting their connections within the system. The layout reveals a cyclical structure with arrows directing the flow of information, emphasizing a continuous feedback mechanism.Sales forecasting, production and final sales causal loop
Source: Authors’ own work