Encyclopedia of Complexity and Systems Science

Living Edition
| Editors: Robert A. Meyers

System Dynamics Models, Optimization of

  • Brian Dangerfield
Living reference work entry
DOI: https://doi.org/10.1007/978-3-642-27737-5_542-4

Definition of the Subject

The term “optimization” when related to system dynamics (SD) models has a special significance. It relates to the mechanism used to improve the model vis-à-vis a criterion. This collapses into two fundamentally different intentions. Firstly one may wish to improve the model in terms of its performance. For instance, it may be desired to minimize overall costs of inventory while still offering a satisfactory level of service to the downstream customer. So the criterion here is cost, and this would be minimized after searching the parameter space related to service level. The direction of need may be reversed, and maximization may be desired as, for instance, if one had a model of a firm and wished to maximize profit subject to an acceptable level of payroll and advertising costs. Here the parameter space being explored would involve both payroll and advertising parameters. This type of optimization might be described generically as policy optimization.



Payoff Function System Dynamic Model Service Personnel Infected Population Cumulate Data 
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Copyright information

© Springer Science+Business Media New York 2013

Authors and Affiliations

  1. 1.Centre for OR & Applied Statistics, Salford Business School, Faculty of Business, Law & The Built EnvironmentUniversity of SalfordSalford, Greater ManchesterUK