21 research outputs found

    Dynamic simulation for strategic insurance management

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    Model simplification and validation: Illustration with indirect structure validity tests

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    Simplification of a large system dynamics model and validation of the simplified version is illustrated. The original model represents agricultural and environmental problems of irrigation development in Southeast Turkey and consists of 62 stock variables. Its simplified version with a narrow model boundary and higher level of aggregation is a general representation of its selected dynamics and consists of 11 stock variables only. Analysis of reference behaviours, indirect structure validity tests and scenario runs reveal simplified model as a valid and useful version of the original. Simplification helps distilling essential model structures that cause selected problems and increases the quality and understanding of models. It can also be a step towards building theory-like structures and general representation of case specific problems in various application domains

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    Sensitivity analysis for models with multiple behavior modes: a method based on behavior pattern measures

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    Sensitivity analysis of system dynamics models is essentially about sensitivity of patterns of output behaviors to inputs, since system dynamics modeling is behavior pattern oriented. In this study, a regression-based procedure for pattern sensitivity analysis is developed, by defining behavior pattern measures such as equilibrium level, trend, inflection point, or oscillation amplitude. A unique feature of the procedure is that it takes into account the possibility of a model generating multiple behavior modes. This pattern-oriented procedure is next applied to the tipping point project management model and a generic supply line model. These test applications yield sensitivity results that are meaningful, and also consistent with previously available sensitivity information about the parameters of these models. Finally, our pattern sensitivity analysis is shown to be a useful and effective method also for oscillatory system dynamics models, an unsolved sensitivity problem previously in the literature.Publisher's Versio
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