Modeling Helps in Understanding Policy Alternatives: A Case

摘要

Understanding an industry and its internal dynamics, primarily through mod- eling, is essential prior to evaluating long-term consequences of industrwide policy options. This paper attempts to provide an understanding of the fabricate metal manufacturing in- Dustry in Australia and its internal operational mechanisms through system dynamics mod- Eling. The model helps to explore various policy options relating to production decisions, Capacity acquisition, demand fluctuation, and investment decisions. The major subsectors con- Sidered in the model are production, customer orders, sales, and capacity acquisition.