Tyssefaldene (A): Before the Impact of Deregulation
Subject
Management Science and Operations
Publication Year
1998
Abstract
This case study focuses on production decisions in a reservoir-based hydro-energy plant. While developed for a system dynamics course, similar learning points can be achieved in any modelling course by adapting the questions. The focus is on model conceptualisation and structuring, not detailed stock and flow modelling or equation writing. Key issues: A single all-encompassing model versus several smaller models - Faced with decisions at different levels, it may be better to build separate models for the different decision makers, even if these decisions are inter-related. Modelling in a changing environment - In a changing environment, the modeller should be aware that using past data to calibrate policy functions can be misleading and that there may be a significant lag between a change in the environment and the ensuing change in behaviour. Differing mental models - Different parties may have different views on 'optimality' and may all be right in their own way.
Topic List
Modelling, Changing Environment, Conflict, Problem Structuring
Industry
Hydro Energy
Publication Event Date
1991-1998
LBS Case Number
CS-99-016
Location
Norway
Project Funder
ESRC
Publication Research Centre
Centre for Corporate Governance, Institute of Finance and Accounting
Available on ECCH
No
