A Stabilization Policy for the Cotton Textile Cycle

Manuel Zymelman
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Manuel Zymelman: Northeastern University, Boston, Massachusetts

Management Science, 1965, vol. 11, issue 5, 572-580

Abstract: This article describes the application of the analog computer to the solution of a stabilization problem in the cotton textile gray goods industry. The behavioristic assumptions of the model are based on data analysis of the industry and personal interviews. The simulation shows that it is possible to reduce the amplitude of the cotton textile gray goods cycle by introducing a simple policy in the production decision-making process whereby greater attention is paid to changes in inventories than to changes in unfilled orders.

Date: 1965
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:11:y:1965:i:5:p:572-580

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