A strategic evaluation of capacity retirements in the steel industry

Over the past twenty-five years there has been a significant reduction in U K iron and steel making capacity. This has happened primarily as a result o f a deliberate strategy which places emphasis on maintaining or improving f inancial performance. An unanticipated but possible scenario of the consequ ences of this strategy is offered by means of a system dynamics model. It c onsiders both short and long term effects and represents an aid to learning in the face of the complexity which characterises manufacturing operations .