System Dynamics

System Dynamics originates in various areas, including control theory, resource sustainability models, and cause-effect and feedback models. It is a clear step forward from deterministic, static types of modelling which do not consider time and potential non-linear effects. Moreover, it is a methodology that is particularly well suited to model complex systems, as models can be built by layers. .

In InPlanta we have carried out many projects using system dynamics by means of such tools as Vensim, iThink, Stella, and others, which make it possible to model complex relationships in a graphic, intuitive way. These tools have powerful graphic interfaces to include the various components of a system: stocks, flows, delays, information, etc. System Dynamics is a particularly powerful tool as a complement to traditional Excel-based planning which does not allow for time effects, delays, non-lineraity, couplings, etc.

We have successfully applied system dynamics in projects on competitive behaviour regarding entrance and pricing strategies, as well as in capacity management and regulatory modelling projects.