Tanker chartering: A system dynamics case study

Abstract This paper describes a practical system dynamics case study. It attempts to show how this OR technique can be applied to a practical problem and the results which it can, and cannot, be expected to give. Although the paper is based on a real project, the details have been altered for commercial secrecy, and the emphasis in this paper is, for the same reason, rather different from that of the original work. The aim of the paper is, therefore, to give enough of a “real” background to contrast the industrial application of SD with some of its other applications. For the sake of reasonable brevity, the emphasis in this paper is on the managerial viewpoint, and the extent to which an SD model provides helpful answers to managerial questions. The model paper is described only briefly as full details, and a model listing are given by Coyle. Some other aspects of the system are treated by Winch.