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Dynamic Modeling for Business Management
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Table of Contents

Preface Chapter 1. Introduction to ITHINK 1.1 Introduction 1.2 Static, comparative static, and dynamic models 1.3 Model components 1.4 Modeling in ITHINK 1.5 The detailed modeling process Chapter 2. Modeling of Dynamic Business Systems 2.1 Introduction 2.2 Making the organization more manageable-systems and processes 2.3 Creating and using a model 2.4 Structural complexity-a market share model 2.5 Complexity due to random variation-an order control process 2.6 Further benefits of dynamic modeling 2.7 Organization principle of this book Chapter 3. Measuring Process Performance 3.1 Introduction 3.2 Financial measures of performance 3.3 The basic profit model 3.4 The role of time, borrowing, and lending 3.5 Choosing among alternatives 3.6 Optimizing at the level of the firm 3.7 Issues with financial measures 3.8 Beyond process output measures 3.9 The process model approach Chapter 4. Single-Step Processes 4.1 Introduction 4.2 The basic process model and Little's Law 4.3 Queuing systems 4.4 Transient queuing behavior 4.5 Further modeling with queuing systems Chapter 5. Multistep Serial Workflow Processes 5.1 Introduction 5.2 Modeling multistep processes in ITHINK 5.3 Specifying models/modeling objectives 5.4 An uncoupled process-an order handling process 5.5 A tightly coupled process-a fast food restaurant process 5.6 Other configurations Chapter 6. Multistep parallel workflow processes 6.1 Introduction 6.2 Parallel queuing models-designing a checkout system 6.3 Resource implications-the fast food restaurant revisited 6.4 Telephone call center model-balking 6.5 Machine repair model 6.6 Batching-a laboratory analysis model Chapter 7. The Supplier Interface: Managing Risk 7.1 Introduction 7.2 First-moment managers 7.3 Second-moment managers 7.4 Third-moment managers7.5 Fourth-moment managers Chapter 8. Customer Interface 8.1 Introduction 8.2 The basic Make-to-Stock model-controlling the inventory level 8.3 The Make-to-Order process- customer interface Chapter 9. The Tradeoffs between Quality, Speed, and Cost 9.1 Introduction 9.2 Model development 9.3 The tradeoffs 9.4 Coping with uncertainty Chapter 10. Modeling Supply Chains 10.1 Introduction 10.2 Introduction to the Beer Game 10.3 The Beer Game model 10.4 Further analysis of the Beer Game model 10.5 Modifications to the basic model 10.6 Using the Beer Game model in game mode Chapter 11. The Dynamics of Management Strategy: an Ecological Metaphor 11.1 Introduction 11.2 Hierarchy in nature 11.3 A model demonstrating the hierarchical nature of an expanding business Chapter 12. Modeling Improvement Processes 12.1 Introduction 12.2 Learning curves 12.3 Modeling an improvement process 12.4 Model results 12.5 Other types of learning curves Appendix A. Modeling Random Variation in Business Systems A.1 Introduction A.2 The uniform distribution A.3 The triangular distribution A.4 The normal distribution-common cause process variation A.5 The exponential distribution-equipment failure times A.6 The Poisson distribution-modeling defects in products A.7 The pass/fail and binomial distribution-product failures A.8 Bimodal distributions-parallel process flows A.9 Custom distributions A.10 The relative comparison of random variation Appendix 2. Discussion of the Actual Profiles for the Examples of Chapter 2 Appendix B. Economic Value Added Appendix C. Derivation of Equations 6.2, 6.3, and 6.4 Appendix 8A Optimization Techniques for the Customer Interface Model Index

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