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A reference mode is a graphical statement about a problem.  Verbally, the problem was stated as "production is less stable than sales."  Graphically we might draw:

This reference mode is a sketch of behavior we might expect a model to produce.  It might be real data from your records, or your expectation of what might happen in a new situation.  The reference mode is used to focus activity.  Having mapped out one or more reference modes the goal is to define the simplest structure that is sensibleF_5 and capable of generating patterns of behavior that qualitatively resemble the reference modes.  If appropriate, such a structure can also be refined in order to develop a model that can be validated quantitatively against the available data.