Improving Insight and Understanding by Optimising System Dynamics Models

This paper will outline the concept of system dynamics optimisation using the DYSMOD software and present a case study of its use to analyse a defence problem. The insights into the problem, which were generated from a conventional system dynamics model and its policy design experiments, will be given. This will be followed by the presentation of results from a set of optimisation experiments, utilising a range of objective functions and structural design parameters. The paper will focus on the value added to the understanding of the problem which resulted from this process. The overall conclusion is that optimisation subsumes conventional sensitivity analysis as well as providing an holistic interpretation of the behaviour of a system dynamics model.