Question

Course Title: BUSINESS DYNAMICS: SYSTEM THINKING AND MODELLING FOR A COMPLEX WORLD  

Required

Explain in details the modeling process and how to apply it in a problem situation. Give a clear example to apply the process on

Draw a simple diagram to show the case

Answer 1

Answer: Business Dynamics: It is an automation that guides business scientifically and calculates future prospects. It analyses the policy, strategy with an emphasis on business and public policy.

Modeling process: In order to calculate, analyze, improved, and automate current business processes so as to increase process speed, reduce cycle time, increase quality, reduce cost.

How to apply the modeling process in a problem situation:

• Analyze the problem: study the situation carefully and identify problems associated with it. determine problem's objective, after that translate it into mathematical symbols and develop and solve the model.
• Formulate a model: Gather data: collect all relevant information about the system.
• Take an assumption and translate it: Simplify factors and make a priority action for that problem which needs immediate attention for that to make an assumption and simplify the process.
• Calculate variables and units: In this divide variable into an independent and dependent variable. inde[endent variables are those on which other are dependent so need to give priority to the dependent variable. and make some variables constant in order to simplify the process.
• Draw a relationship among variables: in this try to draw or translates the relationship between the variables.
• solve the model: provide the exact answer to the problem by using techniques such as algebra, calculus, computer graphs, and computer programs.
• Verify the model solution: process of verification determines if the solution works correctly, validation also needs to complete if the system satisfies the problem's requirement.
• Maintain the model: make a desirable correction, implications, conclusion., etc. Example: we can take the example of furniture company. How to process modeling in furniture business we will improve the process of sales :
• Suppose client is arriving at the store, he requests his choice of furniture and payment. in the whole process, a manager needs to study the process of business, identify improvement points, and bottlenecks.
• A manager needs to identify the process and produce what is required so that client feels smooth transaction.
• A manager will use knowledge, people involvement, and simulation to review, update the model.
• Design the model as to how the process should work.
• test and implement.
• continuously updation is also required and is never standing process.

Simple diagram: