Motorcycle Manufacturer Projects Parts and Accessories Sales
For planning and strategy purposes, the company needs to be able to project parts and accessories revenues several years into the future. These revenues are generated by shipments from the factory to dealers. In the mid-1990s, these shipments became harder to project, as dealer incentives were phased out. An SD model helped the client understand and anticipate better what was going on with consumer demand at the retail level. Demand for parts is a function of several factors, one of which is the average number of miles driven by consumers, associated with wear and tear, breakdowns, and collisions.
The company was concerned, based on one imperfect type of data, that miles driven was declining rapidly and would lead to a significant contraction in parts demand. Through a careful triangulation of other data and stock-flow logic, the model led to the conclusion that miles driven may be declining but not rapidly. This analysis allowed the company to better project parts and accessories sales.
| Client | a large US manufacturer of motorcycles |
|---|---|
| Author/Consultant | Homer J |
Publication
|
Homer J. Structure, Data, and Compelling Conclusions: Notes from the Field. System Dynamics Review, 13(4): 293-309, 1997. |
OTHER SUCCESSFUL APPLICATIONS
A Design Value Calculator: A System Dynamics Boardgame
A Design Value Calculator: A System Dynamics Boardgame EXECUTIVE Summary Product design is a specific form of complex innovation that touches all areas of an organization’s management. While entrepreneurs recognise the value of design, they often tend to focus...
The World Bank Uses System Dynamics to Identify Root Causes of Poverty
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...
Fast-Track Cities Uses System Dynamics to Enhance HIV Care
Fast-Track Cities Uses System Dynamics to Enhance HIV Care EXECUTIVE Summary Low levels of viral suppression at 69% for people with HIV make it hard to believe the 95% target level will be achieved by 2030 in St. Louis, USA. As a solution, Fast-Track Cities-STL opted...
Upcoming Events
MIT System Dynamics Seminar | Work Faster? Put in Longer Hours? An Assessment of Reactive Resilience Policies in Supply Chains
Please visit the MIT System Dynamics Seminars page for more information. You are invited to attend a supplemental System Dynamics seminar being held on Tuesday, April 23rd from 12:00-1:00pm EST in the Jay W. Forrester conference room, E62-450, or via...
Recent Posts
Society Governance Updates
Society Governance Updates Welcome, Allyson! New President Allyson Beall King joined the Policy Council as our 2024 President. Her primary role is as director of the Washington State University School of the Environment, which focuses on regional ecologies and our...
Call for Presenters: Seminar Series
Call for Presenters: Seminar Series We at the System Dynamics Society are continually seeking vibrant and knowledgeable presenters for our ongoing Seminar Series. As we unfold the calendar, there’s always a place for more insights, experiences, and expertise to enrich...
Honoring Excellence: A Glimpse into the Awards of the International System Dynamics Conference
Honoring Excellence: A Glimpse into the Awards of the International System Dynamics Conference The International System Dynamics Conference brings together experts, practitioners, and students to exchange ideas, showcase real-world applications, and celebrate...
Join us
OTHER SUCCESSFUL APPLICATIONS
A Design Value Calculator: A System Dynamics Boardgame
A Design Value Calculator: A System Dynamics Boardgame EXECUTIVE Summary Product design is a specific form of complex innovation that touches all areas of an organization’s management. While entrepreneurs recognise the value of design, they often tend to focus...
The World Bank Uses System Dynamics to Identify Root Causes of Poverty
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...
Fast-Track Cities Uses System Dynamics to Enhance HIV Care
Fast-Track Cities Uses System Dynamics to Enhance HIV Care EXECUTIVE Summary Low levels of viral suppression at 69% for people with HIV make it hard to believe the 95% target level will be achieved by 2030 in St. Louis, USA. As a solution, Fast-Track Cities-STL opted...
Recent Posts
Society Governance Updates
Society Governance Updates Welcome, Allyson! New President Allyson Beall King joined the Policy Council as our 2024 President. Her primary role is as director of the Washington State University School of the Environment, which focuses on regional ecologies and our...
Call for Presenters: Seminar Series
Call for Presenters: Seminar Series We at the System Dynamics Society are continually seeking vibrant and knowledgeable presenters for our ongoing Seminar Series. As we unfold the calendar, there’s always a place for more insights, experiences, and expertise to enrich...
Honoring Excellence: A Glimpse into the Awards of the International System Dynamics Conference
Honoring Excellence: A Glimpse into the Awards of the International System Dynamics Conference The International System Dynamics Conference brings together experts, practitioners, and students to exchange ideas, showcase real-world applications, and celebrate...
Upcoming Events
MIT System Dynamics Seminar | Work Faster? Put in Longer Hours? An Assessment of Reactive Resilience Policies in Supply Chains
Please visit the MIT System Dynamics Seminars page for more information. You are invited to attend a supplemental System Dynamics seminar being held on Tuesday, April 23rd from 12:00-1:00pm EST in the Jay W. Forrester conference room, E62-450, or via...