methodatlas
Method guideSystems Thinking

System Dynamics Simulation

A practical method guide: clarify prerequisites and materials, understand the complete process, and look up outputs, pitfalls, and stop criteria.

ComplexityHigh
TimeMehrere Tage bis Wochen
Participants1-5 Modellierende, Stakeholder asynchron
FormatAsync
MaturityCanonical
Plan System Dynamics Simulation
01

Prerequisite

What needs to be finished first

Complete firstBounded subject

The scope and purpose of System Dynamics Simulation are stated as a concrete question.

Without scope, validated stock-flow model becomes arbitrary.
Complete firstAccess to relevant perspectives

Reference mode and time series, causal hypothesis, parameter sources and units and domain decision makers are available.

Without these perspectives, central claims in validated stock-flow model remain unsupported.
02

Preparation

What needs to be ready before start

Materials

Reference mode and time series, causal hypothesis, parameter sources and units, shared workspace, source links, and decision log.

People / roles

Modeler · domain experts · data analyst · decision owner

Pre-read

Collect Reference mode and time series, causal hypothesis, parameter sources and units in advance and mark open assumptions.

Time needed

Multiple sessions over 2–6 weeks

Setup

Prepare stock-flow model with dimensionally consistent equations, calibration, and sensitivity visibly and calibrate assessment terms before starting.

03

Core question

The one question this method answers

What feedback and accumulation structure generates the behaviour, and how do scenarios respond?

04

Flow

Phases with goal, actions, output and pitfall

A system dynamics simulation defines stocks, flows, auxiliaries, units, and initial values. Calibration, dimensional checks, and sensitivity analysis limit false precision.

validated stock-flow model

Fictional worked example

stock-flow model with dimensionally consistent equations, calibration, and sensitivity as a precise working structure with a fictional example.

Reference mode

Variable · unit · time series

Open tickets, daily, 26 weeks.

Stock and flows

Stock · inflow · outflow

Backlog; new/resolved tickets per day.

Equations

Formula · unit · source

Δt=1 day; Out=min(Stock/Δt, Agents×Productivity) [tickets/day]; State next=State+(In−Out)×Δt.

Validation and scenario

Tests · range · intervention

±20% sensitivity; reduce recurrence from W6.

The example demonstrates the domain logic of System Dynamics Simulation; worksheets remain blank.

MIT System Dynamics in Education Project: Road Maps

  1. 1

    Reference mode

    Reference mode

    Goal

    Produce reference mode so the core question “What feedback and accumulation structure generates the behaviour, and how do scenarios respond?” can be answered with stronger support.

    Inputs for this step

    • Reference mode and time series
    • causal hypothesis
    • parameter sources and units

    Actions

    • Define problem behaviour and horizon as data curves.
    • Record source, rationale, and open uncertainty directly in reference mode.

    Output

    reference mode

    reference mode · source · uncertainty · next decision

    Quality check

    Are measure, unit, and horizon clear?

    Pitfall

    A stock-flow model is calibrated without unit checks and creates false precision. Expose reference mode, equations, units, and independent validation; show uncertainty as a band.

    Timing: 10–20 minutes

  2. 2

    Build stock-flow

    Build stock-flow

    Goal

    Produce simulation model so the core question “What feedback and accumulation structure generates the behaviour, and how do scenarios respond?” can be answered with stronger support.

    Inputs for this step

    • reference mode
    • causal hypothesis
    • parameter sources and units

    Actions

    • Model stocks, flows, feedback, and delays with equations.
    • Record source, rationale, and open uncertainty directly in simulation model.

    Output

    simulation model

    simulation model · source · uncertainty · next decision

    Quality check

    Does every equation pass dimensional analysis?

    Pitfall

    A stock-flow model is calibrated without unit checks and creates false precision. Expose reference mode, equations, units, and independent validation; show uncertainty as a band.

    Timing: 10–20 minutes

  3. 3

    Validate model

    Validate model

    Goal

    Produce validation record so the core question “What feedback and accumulation structure generates the behaviour, and how do scenarios respond?” can be answered with stronger support.

    Inputs for this step

    • simulation model
    • causal hypothesis
    • parameter sources and units

    Actions

    • Test structure, extreme conditions, and historical fit.
    • Record source, rationale, and open uncertainty directly in validation record.

    Output

    validation record

    validation record · source · uncertainty · next decision

    Quality check

    Was the model tested against uncalibrated data?

    Pitfall

    A stock-flow model is calibrated without unit checks and creates false precision. Expose reference mode, equations, units, and independent validation; show uncertainty as a band.

    Timing: 10–20 minutes

  4. 4

    Run scenarios

    Run scenarios

    Goal

    Produce scenario comparison so the core question “What feedback and accumulation structure generates the behaviour, and how do scenarios respond?” can be answered with stronger support.

    Inputs for this step

    • validation record
    • causal hypothesis
    • parameter sources and units

    Actions

    • Compare interventions and parameter sensitivity over time.
    • Record source, rationale, and open uncertainty directly in scenario comparison.

    Output

    scenario comparison

    scenario comparison · source · uncertainty · next decision

    Quality check

    Do assumptions and ranges remain visible?

    Pitfall

    A stock-flow model is calibrated without unit checks and creates false precision. Expose reference mode, equations, units, and independent validation; show uncertainty as a band.

    Timing: 10–20 minutes

05

Artifact

What comes out at the end

Sketch: what the artifact looks like

System Dynamics Simulation · Verhalten über Zeit testenStocks, Flows, Feedback und Annahmen quantifizieren, um Szenarien über einen Zeithorizont zu simulieren
System Dynamics SimulationDas Visual zeigt eine Simulationsfrage, ein Stock-and-Flow-Modell mit Raten und Delay sowie Szenariokurven über Zeit.Systemverhalten über Zeit simulierenAus Stocks, Flows und Raten entsteht ein Modell, das Policy- und Stressszenarien rechnerisch vergleichbar macht.Frage & HorizontWas soll über Zeit getestetwerden?Stock-and-Flow ModellAkquiseChurnStockKundenbasisRateConversionDelayWirkverzugSzenarienZeitBasisPolicy AStressAnnahmenquantifizierenFeedback und RatentestenVerhalten über Zeit
Form

Versioned validated stock-flow model with date, sources, owners, and next review.

Versioning / ownership

Retain date, source, assumption state, and decision for every version of validated stock-flow model.

Tool alternatives
  • validated stock-flow model as board or document
  • Source and evidence register
  • Decision and action log

system-dynamics-simulation-working-template.md

Plan System Dynamics Simulation around its domain steps and the concrete decision question.

System Dynamics Simulation: Worksheet

Question

To be confirmed

Desired outcome

To be confirmed

Scope

Full initiative Time: Multiple sessions over 2–6 weeks

Complete this worksheet on paper or in your own document during the work.

Preparation for this scope

Method setup

  • Materials: Reference mode and time series, causal hypothesis, parameter sources and units, shared workspace, source links, and decision log.
  • Roles: Modeler · domain experts · data analyst · decision owner
  • Advance information: Collect Reference mode and time series, causal hypothesis, parameter sources and units in advance and mark open assumptions.
  • Overall time needed: Multiple sessions over 2–6 weeks
  • Setup: Prepare stock-flow model with dimensionally consistent equations, calibration, and sensitivity visibly and calibrate assessment terms before starting.

Prepare for the work steps

Reference mode: Reference mode

  • Reference mode and time series
  • causal hypothesis
  • parameter sources and units

Build stock-flow: Build stock-flow

  • reference mode
  • causal hypothesis
  • parameter sources and units

Validate model: Validate model

  • simulation model
  • causal hypothesis
  • parameter sources and units

Run scenarios: Run scenarios

  • validation record
  • causal hypothesis
  • parameter sources and units

validated stock-flow model

Reference mode

Variable · unit · time series

...

Stock and flows

Stock · inflow · outflow

...

Equations

Formula · unit · source

...

Validation and scenario

Tests · range · intervention

...

Enter only real input, sources, and decisions.

MIT System Dynamics in Education Project: Road Maps

Reference mode: Reference mode

Expected artifact: reference mode

reference mode · source · uncertainty · next decision

Entry:

...

  • Are measure, unit, and horizon clear?

Build stock-flow: Build stock-flow

Expected artifact: simulation model

simulation model · source · uncertainty · next decision

Entry:

...

  • Does every equation pass dimensional analysis?

Validate model: Validate model

Expected artifact: validation record

validation record · source · uncertainty · next decision

Entry:

...

  • Was the model tested against uncalibrated data?

Run scenarios: Run scenarios

Expected artifact: scenario comparison

scenario comparison · source · uncertainty · next decision

Entry:

...

  • Do assumptions and ranges remain visible?

Open questions and next steps

...

Method guide: https://methodatlas.meierhoff-systems.de/en/methods/system-dynamics-simulation/run-sheet

06

Example output

Concrete filled scenario, fictional example

Fictional example for orientation. Counts and timings describe this case and are not universal requirements.

system-dynamics-simulation-beispiel.md

Concrete filled scenario, fictional example

Stock: open tickets [tickets]. Inflow = new tickets/day. With Δt = 1 day, outflow = min(open tickets/Δt, agents × productivity) [tickets/day], and State(t+Δt) = State(t) + (inflow−outflow) × Δt. Recurrence affects inflow with a two-week delay. Baseline calibrated over 26 weeks; sensitivity ±20% for productivity and recurrence. Scenario: causal fixes reduce recurrence from week six.

07

Pitfalls

Recognize symptoms and steer against them

Quick overview, the full text is in the matching phase in the flow

  1. Reference modeA stock-flow model is calibrated without unit checks and creates false precision.View in phase
  2. Build stock-flowA stock-flow model is calibrated without unit checks and creates false precision.View in phase
  3. Validate modelA stock-flow model is calibrated without unit checks and creates false precision.View in phase
  4. Run scenariosA stock-flow model is calibrated without unit checks and creates false precision.View in phase
08

Stop criteria

When to pause, resolve prerequisites, or choose another approach

validated stock-flow model answers the core question with traceable evidence or explicitly marked uncertainty.
Owners, next actions, and review dates are named for open points.

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