Supply Chain Lab System Dynamics Studio Lab Home
Digital, Dynamics & Games

System Dynamics Studio

A live stock-and-flow model of one ordering loop: a demand step hits at week 10, orders enter a delivery pipeline, and a policy tries to refill inventory. One slider decides whether the policy counts what it already ordered - and that single choice is the difference between a smooth response and months of oscillation.

How to use it

Stock & flow model

Ordering policy

Orders = expected demand + inventory gap ÷ adjustment time + supply-line gap × the dial above.

Physics & shock

The lesson

Sterman’s beer-game result: people ignore goods already on order. Ordering into a pipeline you can’t see is how a 30% demand step becomes an order spike of almost 90%.

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Amplification ×
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Weeks to settle
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Lowest inventory
LIVE · WEEK 0
Steady-state replenishment network armed.

Swipe the diagram sideways to see the whole loop.

Week 0.0

A live supply-chain twin: supplier releases enter the inbound pipeline, arrive at the factory/DC stock, and leave as customer shipments. Vehicle speed, stock levels, queues and the reverse order signal all respond to the same feedback equations.

Inventory vs its target - oscillation means the loop is fighting itself.

Orders vs demand - the gap between the red peak and the grey step is amplification.

Try these experiments

  1. Set supply-line weight to 0%, delay 4 weeks: a +30% step produces a big overshoot and rings for months.
  2. Slide it to 100%: same shock, orders rise once and settle. Nothing else changed.
  3. Now stretch the delivery delay to 8 weeks at 0%: longer pipelines make ignorance costlier - the oscillation grows.

About this tool

The concept

System dynamics models a chain as stocks (accumulations) and flows (rates) tied together by feedback loops and delays - behaviour emerges from structure, not from bad luck.

How it works

Euler integration, dt = 0.25 week. Orders enter a pipeline stock and arrive after the delivery delay; the policy closes the inventory gap and, optionally, the supply-line gap.

Winning strategy

Count what you’ve already ordered. Full supply-line adjustment makes the loop critically damped - the entire bullwhip cure in one parameter.

Background: System dynamics · Stock and flow · Sterman (1989), “Modeling managerial behavior”