SUPPLY CHAIN MANAGEMENT

Assign the correct loop polarity to each one of the loops scarcity, quality erosion and capacity expansion based on the right way for determining loop polarity. Assign the correct loop polarity to each one of the loops scarcity, quality erosion and capacity expansion based on the fast way for determining loop polarity. Compare the results of the two alternative techniques for assigning loop polarity and comment on their similarities.

Scarcity Quality Quality Erosion Price Product Attractiveness Demand Production Production Pressure Capacity Capacity Expansion Delay The figure above is a causal loop diagram (CLD) that describes the pressure exerted on a manufacturer (production pressure) in relation to its production capacity, the customer demand for its products and the product quality/price. In the CLD, there are three feedback loops named scarcity", "quality erosion and "capacity expansion" but these feedback loops are not characterized, i.e. it is not stated if they are positive or negative