It is interesting to experiment with the model by changing different parameters. One possible policy to improve the company's performance would be to correct deviations in inventory more aggressively. We can simulate this by using a decreased value for time to correct inventory. Reducing time to correct inventory from 2 months to 1 month, we get the simulation output for production:
Here we find that reducing the delay in correcting inventory actually increases the amplitude (and decreases the period) of the oscillations, not necessarily a desirable thing for a firm to experience!
Having worked through the modeling exercises the explanation for this response is quite intuitive. The system needs to overshoot in order to build inventory. Trying to rebuild inventory more quickly will increase the size of that overshoot. Because of the delays involved that overshoot will also lead to an overbuilding of inventory which will require a decrease in production. Because the overshoot is bigger, the decrease will also be bigger.
