Day 3 | System Dynamics vs Agent-Based Models
Think of a river system:
Good for understanding aggregate behavior and bottlenecks.
Think of individual water molecules:
Good for understanding heterogeneity and emergence.
| Aspect | System Dynamics | Agent-Based |
|---|---|---|
| Unit of analysis | Aggregate | Individual |
| Data requirements | Lower | Higher |
| Computational cost | Lower | Higher |
| Heterogeneity | Limited | Full |
| Emergence | Not captured | Captured |
[Manufacturer] → Flow → [Warehouse] → Flow → [Facility]
↑ ↑
Orders ←←←←←←←←←←←←←← Demand
Tracks aggregate quantities flowing through the system.
How do we connect ML predictions to ABM?
Bridge: Use predictions to parameterize agent decision rules.
┌─────────────────┐ ┌─────────────────┐
│ ML Model │────►│ Predictions │
│ (Demand Forecast)│ │ (By region/time)│
└─────────────────┘ └────────┬────────┘
│
▼
┌─────────────────┐ ┌─────────────────┐
│ ABM Simulation│◄────│ Agent Params │
│ (Supply Chain) │ │ (Order rules) │
└─────────────────┘ └─────────────────┘
In the next session, we’ll:
Let’s discuss before moving to the hands-on session.