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Exercise: You are running a company that produces and sells products (WIDGETS) You have a good idea of the following: - WIDGET COST (treat as
Exercise: You are running a company that produces and sells products (WIDGETS) You have a good idea of the following: - WIDGET COST (treat as a constant) - WIDGET PRICE (treat as a constant) - EXPECTED ORDERS (treat as a constant) - PROFIT (treat as a variable = REVENUE - COST) You also know that: - When you produce a new WIDGET, it goes into inventory and is then available for sale - Sales are based on EXISTING ORDERS Diagram the basic mechanisms, the feedback loops, of the system using a system dynamics stock and flow diagram tol study the effect of inventory on your PROFIT over time. In your submission, you must: - Provide a complete stock and flow diagram depicting the system described. - Describe the relationship of inventory to profit
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