MODELING WITH VENSIM 101:
BASICS
First: System dynamics…

 How is my inventory
  policy affecting my
       cash flow?           Is an ERP the
                           ‘answer’ to our
                              problems?


                 How can people
                respond to a tax
                   increment?



      It’s all about understanding the
  structural causes that affects the system
Stocks
     People
     Goods
     Rabbits
     Meters
    Gallons
    Pollution

                                RABBITS      Whatever
                                             you       see
                                             when
                                             picturing
                                             it… those
                                             are stocks!
Let’s take a mental photo of…
    let’s say a bunny colony
Stocks are like a glass… they fill up… or drain out…
FLOWS
                                           People/year
                                           Goods/Shift
                                           Rabbits/Month
                                           Meters/Second
                                           Pollution/year

                                           Unit/Time




How do you fill up/drain out that glass?
Fills it

              Rabbits
Births                  Deaths
                         Drains
                           it


                                Warning!
                              Rabbits in the
                                 area
If it’s not a stock… if it’s not a flow
It‘s either an auxiliary variable or a
constant.
Population Dynamics


                         Conceptual
                         Model



                   Or…

Stock
and
flows
model
Our first model

       Can you picture it? What’s the main stock here??

         What’s feeding that stock? What are the flows?




Let’s go to a warehouse… a quite simple one
Our first model: The bones
It should look something like this:
Let’s build that up!!!


    Flow
Let’s build that up!!!
Now some ecuations
Performance Indicators
Simulation!!!
Results
Mario Andrés López

 mlopez0301@gmail.com

Modelling with Vensim 101: Basics