Simplicity, totality and change: a logistic viewpoint in inventory management
Abstract This paper demonstrates that even a simplified model works well when the model is revised from time to time. A new type of management problem results: easy-to-create models which cannot be validated.
A Case Study in System Dynamics Optimization
This paper presents the use of optimization as a tool for policy analysis and design in system dynamics models, and presents a demonstration of its use on the ‘project model’ developed by G. P. Richardson and A. L. Pugh III in their book Introduction to System Dynamics Modelling with DYNAMO. The use of optimization to design parameters, table functions and new model structure is shown to produce a very significantly improved performance for this model compared to conventional approaches.
The use of optimization methods for policy design in a system dynamics model
Optimization methods have the potential to improve the processes of policy analysis and design in system dynamics models. To demonstrate the use of optimization approaches, this article applies routines developed by Keloharju to a simple model of unstable inventory dynamics. Policies derived from the optimization approach are compared with policies obtained in earlier, more intuitive analyses. The results suggest that optimization methods could significantly improve both the speed and power of policy analysis in formal models.