Figure 8.
A diagram illustrating the causal relationships and rates affecting raw material inventory, production, and sales.This diagram represents a system dynamics model displaying the flow of variables related to raw material inventory, production rates, and sales. Key elements include raw-material inventory, goods in transit delivery rate, raw-material unit price, and final production rate of product. Arrows with plus signs indicate positive relationships, whereas arrows with minus signs represent negative influences. Additional elements such as overhead costs rate, financial credit backlog payment rate, and available financial credit further connect the components. The layout is circular with multiple paths showing how each variable interacts within the system, emphasising the interconnectedness of inventory, costs, and income. Annotations label each component clearly, facilitating understanding of the flow and dependencies in the production process.

Realisation of income causal loop

Source: Authors’ own work

or Create an Account

Close subscription notice
Close access options