Abstract
One means of adapting to variation in demand is making capacity flexible so that work in progress (WIP) can be regulated; however, this can significantly influence the dynamic behavior of production networks in which there is high local autonomy. Control-theoretic models are a convenient means for investigating and designing the dynamics of such networks, but the fidelity of these models is not well understood. In this paper, results obtained using discrete-event simulations are used to assess the control-theoretic approach, providing evidence that fidelity varies depending upon factors such as WIP level and the magnitude of capacity adjustments.
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