Use of Transfer Functions for Company Planning

Gordon K. Johnson and Inez M. Turner
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Gordon K. Johnson: Minneapolis-Honeywell Regulator Company, Minneapolis, Minnesota
Inez M. Turner: Minneapolis-Honeywell Regulator Company, Minneapolis, Minnesota

Operations Research, 1956, vol. 4, issue 6, 705-710

Abstract: In the aeronautical industry as in other manufacturing industries, one of the problems associated with planning an engineering program is to determine the amount and timing of engineering effort needed to support the sales forecast. In an effort to understand this problem better, a study was made of the relation of engineering effort to sales. It was found that this problem was analogous to that of a servomechanism system for which mathematical techniques have been developed and applied successfully. The study resulted in the development of a “transfer-function” formula which has proved to be a useful tool for measuring the relation between engineering effort and sales. The method employed to obtain the transfer function and the results obtained by its use are presented herein.

Date: 1956
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