Dow Chemical Powers Forecasting and Scenario Analysis with System Dynamics
An SD model was developed to explain strong repeated price cycles in the chlor-alkali chemical market. A first version of the model was developed focusing on Europe alone. A second, expanded, version considered the entire global market. The model led to an improved understanding of what caused the problematic price cycle, whether it could be accurately forecasted, and whether anything could be done by Dow to dampen the cycle or to manage more effectively around it.
Client | a large global chemical company (Dow Chemical) |
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Author/Consultant | Homer J |
Publication
Homer J.  Why We Iterate: Scientific Modeling in Theory and Practice. System Dynamics Review, 12(1): 1-19, 1996. |
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Solving Bottlenecks in Dairy Production Facilities with System Dynamics EXECUTIVE Summary FrieslandCampina faced potential bottlenecks in production due to the merging of two factories. They hired SD&Co which employed system dynamics simulation models to predict...
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The World Bank Uses System Dynamics to Identify Root Causes of Poverty EXECUTIVE Summary Madagascar has one of the highest poverty rates in the world. In 2022, an astonishingly three out of every four people in Madagascar lived below the poverty line. Poverty has...
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