About five years ago a semi-governmental firm, the VAM (Vuil Afovoer Maatschappij) formulated plans to extend their efforts to convert domestic waste to compost to a real recycling industry. The idea was to install equipment to extract secondary paper pulp from domestic waste and sell it to paper and board industry. The Union of Old Paper Merchants opposed strongly: abundancy of low grade secondary paper pulp could ruin the old paper market and times were bad just after the oil crisis. A study was started to investigate possible consequences of the VAM plans. In the four following years a System Dynamics model was built to show the most important mechanisms of the problem.
This paper describes a System Dynamics approach to the problem of linking national and regional transportation to other components of national development plans. A framework of interactions among social, economic, and transportation variables is constructed based on the proposed approach. Such a framework facilitates the analysis of the reciprocal impacts of transportation infrastructure and the socio-economic environment, thus providing an important input to the process of transportation policy making for development. Specific references are made to Venezuela, where a serious effort is being made to explicitly incorporate a transportation strategy into the national development plan.
The model system is an approach to solve the dynamic multilocation warehouse (or plant) sizing problem by integrating different models and methods: (1) A simulation model of System Dynamics type for analyzing effects of different locations and capacities on demand, cost, and operating results; (2) An Integer Programming model for determining warehouse configurations, i.e. effective locations, and capacities. The model system has been applied to an important German wholesale distributor of pharmaceuticals. It has been used for analyzing the firm’s distribution system, and working out proposals in order to improve it.
A study of the multiple-use task produces a method for integrating quantitative and subjective information to enhance decision-making about the multiple use of renewable resources. Methods of resolving conflicts and applying system dynamics methods are given.
Input-output analysis for an “open” system relates production rates for various sectors of an economy to stipulated final demands. However, it is well known that the conventional dynamic analysis usually does not yield results which approach smoothly to those of the static analysis. In this work, the dynamic analysis is cast into the form of a system dynamics model. A modification of the rule which governs sector production rates is introduced so that stable results are obtained which do approach those of the usual static input-output analysis. The system equations are further modified to incorporate time-lagged stock indices and damping in the production rate rule. Prices are handled throughout as in conventional input-output analysis.
In the simulation model the development of the drinking water supply system of South Holland is simulated for the next thirty years given a policy strategy, a certain demand of drinking and subpotable water and some scenario assumptions like discount rate, water quality standards, increase of energy prices. An alternative policy strategy generates an alternative development over time of the supply system.
To introduce system dynamics approach into interprofessional organization to built a model about agricultural market is not so original. That’s more interesting is the use of system dynamic to define what information system must be not only designed but scheduled to regulate the market. Since July 1979, MEDOC gives some useful informations to people who have the difficult challenge to follow the Bordeaux wines market.
This paper contributes to the discussion of academic training requirements for System Dynamics modelers. In particular, it suggest that training in Strategic Management can provide the System Dynamics modeler with some essential complementary tools and a “top management perspective” (or systems viewpoint), which is needed to define problems of real managerial interest. To illustrate these points, the author describes his experiences in defining a problem for system dynamics modeling. The future prospects for the New Zealand Forestry Sector, and the New Zealand Forest Service, are described and the problem for modeling is presented.
In this paper, a pilot system dynamics simulation model, EDFIN1, is used to forecast the impacts of a cost-of-education index (COEI) on patterns of per pupil expenditures across various types of local school districts. Originally designed to compensate more fully those districts that incurred greater costs in the purchasing of educational inputs (i.e., higher teacher salaries or greater need for transportation), COEI adjustments are seen also to have direct impacts on the relative equity of per pupil expenditures across the states as a whole.
The world oil market is undergoing substantial changes, in terms of overall structure, number of key participants, and market adjustment mechanisms. These changes will influence both price determination as well as critical decisions pertaining to the production capacity utilization.