The automobile fuel market in Italy is appreciably different from that in other European countries and even more unlike the American context.As a matter of fact, the alternative and available automobile fuels in this country are the following: -gasoline (petrol),-gas oil (diesel oil),-liquefied gas (LPG), plus a very small amount of natural gas, each with its own price. In addition, price differences are considerably greater than in other countries.In view of the fact that gasoline is the most expensive fuel and gas oil the least expensive, the Italian Government has adopted a peculiar tax called “Superbollo” meant to penalize car owners with diesel powered engines and those with both gasoline and LPG powered engines, but to a different degree.The alternatives access by drivers (car-users) to different fuel resources has influenced and countries to influence the automobile industry’s approach to the Italian market.On the other hand, the different fuel prices, plus the varying annual amount of the ‘Superbollo” tax, influences the motorist’s decision in buying and using differently powered cars.The decision is obviously affected by the consumption rate for each type of fuel and the driver’s expected mileage per year.This paper aims to underline and analyze the hypothesis on the mix of the three main fuels used in Italy, trying to give results principally on the basis of: -price-changing of each fuel, -tax-value of “Supperbollo”, -different driver-mileage taking into account the pollution-cost of each of the three fuel solutions. The system, which is the subject of the study, will be analyzed using System Dynamics methodology, with a dynamic model.
The close similarity between the Indian census, Government of India and U.N. population estimates and those from the Constrained Coalition and Logistic Model (CCLM) has been demonstrated which enhances the usage of differential equation modeling for studies on population growth processes. The CCLM incorporates the legitimate requirement of an upper bound for the aggregate population thereby implying the rate of natural increase to reach the zero level. The numerical value assumed for the upper bound is based on food supply - arable land availability, and accounts for advances in agriculture productivity. However, other factors such as quality of life, environmental degradation, per capita income, etc. can also be used to arrive at an upper bound. The model holds good promise for usage for other developing countries.
This paper presents results of extended experimentation with selected models of social phenomena widely used by the system dynamicists in their studies on deterministic chaos. The models selected include various versions of a simple model of migratory dynamics and a model of resource allocation in a firm, and a simple model of long-term economic fluctuations. Chaotic modes seem to appear in each of the experimented model, either due to non-robust or unrealistic rate formulation, or from unrealistic parameter or input specifications or both. Minor changes on the models experimented with, which improve their correspondence to reality, eliminate chaotic modes. The paper raises the issue of the relevance of the chaotic models to real-world phenomena and policy design for system improvement.
The use of computer tools to aid in decision-making and problem-solving activities suggests a view of negotiation in which parties collaborate to improve the quality of the information and knowledge on which they base their joint decisions. In this view, negotiation is characterized as a process of discovery and design. The effectiveness of negotiation is defined in three dimensions: legitimacy, feasibility, and efficiency. Computer tools are discussed in the context of information strategies, or ways in which negotiators use information in their efforts to ‘discover and design’ solutions.
Japanese old age population is gradually increasing and this tendency weakens economic conditions of Japanese welfare annuity system. Therefore it is important for us to study future conditions of this system.This model contains 4 sectors: Demography, total premium income, total pension expenditure and reserve of the welfare annuity system.The demographic sector covers populations of 5 three-year age groups under 14 years of age and 13 five-year age groups above 15 years of age. This sector was first formulated for a simulation model of dental diseases and is now applied to this model. Total premium income for the welfare annuity system is the sum of premiums of workers, employer contribution and government contribution, for which populations of five-year age groups are used. Total pension expenditure is the sum of base pensions and earning related pensions. Here is used population of 60-64 age group. Total premiums plus interest income of the reserves of the welfare annuity system minus total pension expenditures flow into the reserves of the welfare annuity system.The length of the simulation is 63 years from 1963 to 2025.This study is a research project of the Japan Productivity Center.
Advances in computer software allow modelers to design, with relative ease, sophisticated, realistic educational tools. With these advances, new issues arise about how to make this educational software productive and stimulating, without limiting the freedom of the user or creating simply a computerized workbook.Such simulation games have great educational potential for people who play video and home computer games, and sometimes for students in classrooms. The games must address three information levels: (1) real-world details, (2) simulation of model, and (3) conceptual understanding of structure and dynamics. The systems viewpoint on the particular model must be clearly explained; otherwise users will have much fun but learn little. Feedback during the game teaches this system understanding without requiring textbook readings. Such feedback requires new modes of “expert” computer analysis which need to be developed. Other tools need to be developed to help in creation of simulation games and to give the games abilities that they do not yet have, such as access to database of models, pictures, and text, and connections between simulation games.
The paper suggests a novel approach to policy design in system dynamics models. The approach is based on optimal control theory to evolve synthetic policy structures and then design realistic policies for the famous production - distribution model of Forrester. New policy sets have been presented for purchase decision rate at retail and distributor sectors and manufacturing decision rate at factory. It is shown that the suggested policy sets show a marked improvement of model behavior over that obtained by Forrester. The approach suggested here will enhance the art of policy design.
Eroding competitiveness, declining productivity growth, explosive technological, political and environmental change, and dissolution of market and national boundaries form the familiar litany of problems which threaten traditional organizational structures and management practices. In the turbulence at the close of the century it is widely argued that organizations must change more rapidly than ever before.
The last decade has been the accelerated development of what Yadav and Chand term “Organization Support Systems”- large scale, complex and extremely expensive computer based information systems (Yadav, 1989). The cost associated with such systems has increased the requirement for a sound methodology to evaluate the expected operational benefits and drawbacks resulting from their implementation, at as early a stage in the system life cycle as possible.An extensive survey of the literature in the field of information system evaluation, with a particular focus in the methodologies, tools and performance measures being used in practice, preceded the development of the methodology reported in this paper, and is presented in full elsewhere(Watts 1990).This paper comments on the findings from the review and reports on the development of a system dynamics based methodology for the assessment of proposed computer-based information systems (CIS), in terms of their potential to support organizational objectives.The methodology has been evaluated by application to two military CIS, at different stages in the system life cycle. These cases are reported separately(Watts and Wolstenholme, 1990; Henderson and Wolstenholme, 1990), but the indications are that the methodology can contribute throughout the system life cycle y providing a continuing reminder of the relevance of the CIS to the real-world system which is intended to support.
Inflation is one of the most troublesome problems China is recently faced with in the course of the economy reform. The inflation takes place in the form of general price rising. It becomes more serious and is greatly obstructing the healthy development of China’s economy. This situation results from many factors including the biased trend of the reform strategy, the deviations in implementation policies, the defects of the economic system, etc. The conventional theory about money amount has been used to analyze inflation before. This analytic method specially indicates the view point that inflation with no exception is a kind of money phenomenon by stressing the causal relationships between money amount and general price level, but it considers money supply as an exogenous variable controlled by the government’s policies and ignores the effect and restrictions from other economic factors. Therefore there are some limitations of this method in real uses. For this reason a new approach of system dynamic is put forward in the present paper. A dynamic model composed of a monetary market section, a commodity market section and a regulation section is developed. On the model a series of policy tests mainly concerning the two economy levers of price and interest rate are simulated with the consideration of china’s special situation. The cause and mechanism of suggestions are also made for elimination or controlling the inflation. The results of the paper may provide worthful references for China’s further economy reform.
In recent years, increased public awareness of the health and productivity costs associated with the use of cocaine and its potent derivative “crack” has served to heighten concern and renew debate over the most effective strategies for managing the drug problem. This paper presents a preliminary system dynamics model of the international cocaine trade. The initial model incorporates the various stages of the cocaine system from source country production to final consumption including: primary resource allocation and production; cocaine production; cocaine production and export; and U.S. demand, import, pricing, and consumption. The model is used to examine an ensemble of policies proposed by the National Strategy for Drug Control (White House 1989). Simulation results show the capacity of the system to exhibit a wide array of behavior modes depending on the type of intervention being applied and the aspect of the problem being targeted. Of particular interest from a policy standpoint is the implication of delays in physical and information flows for generating divergent short and long term policy results. Findings suggest a comprehensive approach combining demand and supply side policy leverage represents the most effective management strategy.
A System Dynamics model of an ecological system consisting of two patchily distributed populations is constructed to study the effects of inter-patch colonization on the persistence of the species. The model structure is primarily composed of the negative feedback loops dominant in local (within-patch) population regulation and a regional positive feedback loop coupled with two negative loops which regulate the inter-patch species colonization.The simulation results show that with colonization the population system always persists if at least one of the populations is larger that a minimum viable population size (MVP). If the species has sufficiently large colonizing ability, the populations are always able to reach the carrying capacity. Otherwise, the population with below MVP, there are two possibilities depending on the magnitude of species colonization ability: (1) both stabilize at the carrying capacity level and (2) both go extinct. The simulations also demonstrate that delays in colonization and population regulation may have distinctive impacts on species persistence and dynamics of the population system. The study may provide useful information for species conservation and design of nature reserves.
Innovation management is a special task in several respects. Its success is essential for the survival of the firm. It deals with highly dynamic processes, and it requires a viable strategy from the very outset. Analyses of innovation dynamics have shown that market forces usually do not allow the search for a gradual approach towards a successful strategy. Frequently technology advances rapidly and the market changes so fast that no second try is possible.In such a situation, the artificial reality of a management simulator provides a powerful environment to learn about the system under investigation. It allows deeper insights into the problem situation. In its virtual world, it alleviates the development of an improved understanding of the intrinsic aspects, and leads to a better feeling for possible reactions of the market.The paper presents the coarse structure of an Innovation Management Simulator (IMS). The players represent four competing companies. At the beginning of the simulation, all offer a comparable product, no firm holds a competitive advantage. Among other policies, they can -through resource allocation for research and development - create additional, non substituting products. The product life cycles with their time patterns of profits and sales, market shares, etc. are endogenous variables, influenced by the players’ actions.The decision to develop and launch a new product and the choice of the time for market entry are strategic variables of the players. Further decisions are required to budget product and process development, pricing and advertising, capacity allocation, personnel recruitment and financing. The game is played on a quarterly basis. The decisions are fed into a System Dynamics model, and the results provide the input for a new round of decision making.
The paper reports on a new approach for the building of Decision Support Systems based on System Dynamics and Expert Systems. The power of this approach is illustrated by using it to identify problems that exist within the production processes of a manufacturing company. System Dynamics was used to simulate the production processes and build the expert system. The simulation identifies the process where the problem exists, and the Expert System suggests possible causes to the problem and the solutions required to bring production back to normal.Stella was the System Dynamics tool used to gain a detailed understanding of the production processes and their interactions in order to build a simulation model. The influences from this simulation were used to structure the knowledge base of an expert system. While the expert system was an essential ingredient of the Decision Support System, the actual system that was used and its features were of secondary importance.This paper will benefit System Dynamic practitioners who are interested in: 1) simulating a process within an organisation., 2) the application of System Dynamics to solve a manufacturing problem.,3) the relationship between System Dynamics and building of Experts Systems., 4) the use of System Dynamics as a decision making/support tool in the manufacturing industry.
Energy dissipative systems are considered through a general approach. The one direction non-steady state equation for mass, heat and momentum transport shows that the energy used by system could be considered through “energy dissipation function”, comparable to the “wave function” used in Quantum Mechanics. A complex time scale is proposed. This permits to consider the fluctuations as being in a time scale which is different from our classical one. The non commutation of operators of the basic equation introduces quantification which supports the use of finite different equations instead of a differential equation. A discretized Chaotic Process is proposed as a model for actual systems. The example of a fluidized bed shows that quantum considerations through a ground dynamic state and an excited state could support the above proposal which is in agreement with the actual qualitative behaviour. The Chaotic Process can be put in agreement with the thermodynamics based principle when comparing the minimum energy dissipation of the actual system.
A cost structure is presented for the development projects based on two kinds of cost: base cost and progress cost. The base cost is necessary to keep a project alive and ready for real progress. The progress cost is to make physical progress in the project. A dynamic model is made and simulated to show the behavior of this cost structure. The model shows that when development budget is not sufficient to pay for all the required expenses of an ongoing development projects, total cost of development projects would increase and completion time of the projects would rise. Insufficiency of development budget occurs either by decline of government revenues or by start of too many new projects. In the face of insufficient budget, it becomes very crucial to decrease the starting rates of new projects. By decreasing the number of starting projects, the behavior of the model in terms of completion time and unit cost of the projects improves considerably when budget insufficiency appears.
To construct more public houses so that the low income population in the urban areas can have their own houses is one of the major efforts of the government of the Republic of China on the island of Taiwan . This good-will policy did solve some of the housing problems, yet remained some undesirable ones, such as, the large amount of unsold public houses. Those unsold public houses were primarily due to (1) delayed supply, (2) smaller sizes, and (3) unsuitable locations. This research attempts to study the “unsuitable location problem” and “too small size problem” in the city of Kaohsiung . The System Dynamics methodology is employed to study these problems through model building and policy testing. The model is composed of three sectors: (1) population and the zonal migration attractiveness, (2) housing supply, and (3) housing demand. All the three sectors are interacted with each other. The selection of the variables and the weight of variables are partly determined by field survey. By focusing on the structure of intra-urban migration, it is found that the intra-urban system has a very dynamic feature. The simulation results show that the behavior of the population flow is dominated by several feedbacks loops, some reinforce the growth of population, while others limit it. Through analyzing the simulation results of the model, some design principles of the public housing policy are suggested. From the demonstration of some policy tests, it shoes is the potential of the model to aid the formulation of a “dynamic” public housing policy design, that is, when to supply how much of a certain level public houses to which area of the city under a specific scenario. This preliminary study shows that system dynamics is not only a useful tool to have insights into this kind of complex socioeconomic problems, but also potential to deal with the spatial dimension of urban issues in addition to its mostly temporal applications.
The 21st century is already here (Drucker,1989). Many people predict the 21st century will be fundamentally different from the 20th century (Drucker, 1989; Niasbitt & Aburdene,1990). Looking back upon the past, Korea entered the 20thcentury lacking preparations in the midst of the nation’s internal and external conflicts and confusion. As a consequence, Korea went through several periods of stagnation and difficulty during the first half of the century. However, Korea began to demonstrate its remarkable potential for modernization and development since the early 1960’s. Within a quarter of a century, Korea has emerged as a developing nation rapidly approaching advanced status. Now, Korea is facing another turning point dividing the centuries. Her future depends on her determination and preparation today. The 1990’s is the time for her to make choices and decisions that will promote the prosperity of the nation and the unification of two Koreas. It’s the time to establish a more mature society. It’s the time we should consider the public's demand for quality of life. It’s the time to consider her natural environment deteriorating due to urbanization and industrialization. All this will be realized only through her devotion to the establishment of a society based on a vision of optimism.
Markov models and System Dynamics models are apparently applicable to two completely different kinds of problems. However, structurally, they can be proved to be equivalent to each other. This paper establishes this equivalence. Critical observation have been made with regard to similarity and aparent differences between the two methodologies. The paper has also proposed a procedure for converting Markov models into system dynamics models. Examples have been drawn for the Birth-Death process, M/M/1 Queue, Poisson Process and Yule Process to illustrate the method. It has been shown that such a framework makes the model for stochastic processes much more transparent and enables the system analyst to understand the behaviour better.
This paper presents a rural energy system dynamics (RESD) model in Beijing . The system covers a wide range of aspects, such as economy, energy, pollution, water, population, labour and farmland. RESD model contains 8 sectors: electric industry, coal industry, building material industry, other industry, the third occupation, capital, agricultural production and people’s life, from which 788 variables were attained with 48 levels equations. The present study puts forward 4 suggestions and how to realize the 4 suggestions to the development of this system.