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System Dynamics

  • System Dynamics is a computer-aided approach for strategy and policy design.
  • To make better decisions when confronted with complex, dynamic systems.

FROM SYSTEMS THINKING TO SYSTEM DYNAMICS

  • Systems thinking is a way to describe and understand the causality and interrelations between variables within a system.

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  • System Dynamics quantifies the impact of those interactions.

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System Dynamics Modelling

  • An approach to explicit representation of the structure and information feedback.

Structural concepts

  • Feedback
  • Accumulation
  • Delays

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Operational Management

The activity of managing the resources which produce and deliver products and services.

Reconciling of external demands with internal capabilities

System dynamics in Operational Management:-

  • Rationalist and pure deductive way

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  • Driven by empirical evidence, not by abstract concepts

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System dynamics to understand time- dependent aspects

Feedback- Central notion of System Dynamics, feedback loops are the structural binding blocks of all social system.

Accumulation – Stocks, preserve path/flow of the system.

Delays - delays between cause and effect.

Non linearity – The combination of feedback loops, accumulation process and delays frequently results in non- linearity behaviour of systems.

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Computer Simulation

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Applications in Operational Management

Production and supply chain flows.

Improvement programs in operations.

Project Management

New product development, innovation and diffusion.

Effects of specific operations decisions and technologies.

Specific supply chain conditions like disruption, closed loop supply chain, forecasting failures.

Modelling Process

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  • Management of the flow of goods, data, and finances related to a product or service, from the procurement of raw materials to the delivery of the product at its final destination.
  • Make-to-order system build around four echelons.

Supply Chain model development

  • Logic influence diagram
  • Logic rate and development diagram

Supply Chain Management

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Experimented operating scenarios and analysis

High demand

Low demand

High demand uncertainty

Low demand uncertainty

Increased in production rate.

Unreliable manufacturer

Working with unreliable suppliers

Information enriched supply chain

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References

  • Systems dynamics modelling of a manufacturing supply chain system Mustafa O¨ zbayrak, Theopisti C. Papadopoulou, Melek Akgun
  • System Dynamics perspectives and modeling opportunities for research in Operations Management John Sterman, MIT Sloan School of Management Rogelio Oliva, Texas A&M University, Mays Business School, Kevin Linderman, University of Minnesota, Carlson School of Management Elliot Bendoly, The Ohio State University, Fisher College of Business
  • System Dynamics and Operations Management Andreas Größler Department of Operations Management, University of Stuttgart, Stuttgart, Germany
  • System dynamics perspectives and modeling opportunities for research in operations management, Kevin Linderman, Elliot Bendoly, Rogelio Oliva, John Sterman
  • System dynamics modeling for sustainable supply chain management: Tobias Rebs , Marcus Brandenburg , Stefan Seuring
  • Assessment of Supply Chain Flexibility Using System Dynamics Modeling Rohit Kumar Singh, Sachin Modgil, Padmanav Acharya
  • A System Dynamics Model for Operations Management Improvement in Multi-plant Enterprise By: Yonis Mustefa Mussa
  • A Brief Introduction to System Dynamic Modelling, Dr Mike Yearworth

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