Lecture_Notes

 PLANNING  

 


BALANCING THE PLAN

 

 

 Initial state 

We start from a well balanced plan:

 

 Step 1 

In the first step we increase the quantity of good bg used
for investment from 67 to 100. As a result some numbers
(underlined red) in the set of balance sheets change. 

 This first step affected just the production of bg - the balance sheet of bg is now
out of balance: 1042.52 is needed but the plan is to produce only 1009.52 .

 

 Step 2 

In the second step we increase the planned output of bg
in an attempt to restore the balance. 

Our action pushed all four sheets-- including bg --out of balance.

 

 Step 3 

In the third step we try to restore the balance of cg.

The imbalance in three out of four sheets was increased.

 

 Step 4 

Now we try to restore the balance of dg.

The result is similar as before the needed quantity of all four goods increased.

We shall continue in the same way for several additional steps.

 

 Step 5

 

 

 Step 6

 

 Step 7

 

 Step 8

We can see that even after 8 steps imbalance of 2 to 5 units still remains.
However, the system does converge, even though very slowly, to the overall
balance. Many additional steps would be needed to reasonably close to
the well balanced plan.

 

 

 

 

 

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