Design of a System Dynamics Model to Analyze the Styrene Demand in the Brazilian Market

The growth of the petrochemical industry is based on end-user applications such as the automotive and construction sectors, which are the main drivers of the styrene market. However, the use of substitutes for petrochemicals is a reality and creates a competition in the applications of petroleum pro...

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Published in:Systemic practice and action research Vol. 31; no. 1; pp. 87 - 104
Main Authors: Souza, Marcos Leandro Hoffmann, Rodrigues, Luis Henrique, Morandi, Maria Isabel Wolf Motta
Format: Journal Article
Language:English
Published: New York Springer US 01-02-2018
Springer Nature B.V
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Abstract The growth of the petrochemical industry is based on end-user applications such as the automotive and construction sectors, which are the main drivers of the styrene market. However, the use of substitutes for petrochemicals is a reality and creates a competition in the applications of petroleum products. In this sense, this research aimed to design a system dynamics model to evaluate different scenarios, observing the behavior of the styrene demand over time. In the first phase of the project, a greater understanding of the issue was created and a closed loops diagram was elaborated. It was used during the second phase to design an explanatory regression validation model for the styrene demand. In phase three, a visualizing model and scenarios were designed. The scenarios themselves and the results of each scenario were evaluated. The designed and simulated scenarios aimed to evaluate the impact that the use of substitute materials and the variations in gross domestic product cause to the styrene market. The use of system dynamics together with scenario planning was efficient as different strategies for the market could be evaluated based on the simulated scenarios. A critical analysis of the model’s contribution to the decision-making within organizations concludes the study.
AbstractList The growth of the petrochemical industry is based on end-user applications such as the automotive and construction sectors, which are the main drivers of the styrene market. However, the use of substitutes for petrochemicals is a reality and creates a competition in the applications of petroleum products. In this sense, this research aimed to design a system dynamics model to evaluate different scenarios, observing the behavior of the styrene demand over time. In the first phase of the project, a greater understanding of the issue was created and a closed loops diagram was elaborated. It was used during the second phase to design an explanatory regression validation model for the styrene demand. In phase three, a visualizing model and scenarios were designed. The scenarios themselves and the results of each scenario were evaluated. The designed and simulated scenarios aimed to evaluate the impact that the use of substitute materials and the variations in gross domestic product cause to the styrene market. The use of system dynamics together with scenario planning was efficient as different strategies for the market could be evaluated based on the simulated scenarios. A critical analysis of the model’s contribution to the decision-making within organizations concludes the study.
Author Souza, Marcos Leandro Hoffmann
Morandi, Maria Isabel Wolf Motta
Rodrigues, Luis Henrique
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  givenname: Marcos Leandro Hoffmann
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  fullname: Souza, Marcos Leandro Hoffmann
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  organization: Research Group on Modeling for Learning – GMAP|UNISINOS, Production and System Engineering Post-Graduation Program – PPGEPS/UNISINOS, Universidade do Vale do Rio dos Sinos – UNISINOS
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  givenname: Luis Henrique
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  fullname: Rodrigues, Luis Henrique
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  givenname: Maria Isabel Wolf Motta
  surname: Morandi
  fullname: Morandi, Maria Isabel Wolf Motta
  organization: Research Group on Modeling for Learning – GMAP|UNISINOS, Production and System Engineering Post-Graduation Program – PPGEPS/UNISINOS, Universidade do Vale do Rio dos Sinos – UNISINOS
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Copyright Springer Science+Business Media New York 2017
Systemic Practice and Action Research is a copyright of Springer, (2017). All Rights Reserved.
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Keywords Decision-making
System dynamics
Styrene demand
Scenario planning
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Snippet The growth of the petrochemical industry is based on end-user applications such as the automotive and construction sectors, which are the main drivers of the...
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SubjectTerms Business and Management
Design
Methodology of the Social Sciences
Organization
Petrochemicals industry
Review
Sociology
Systems design
Title Design of a System Dynamics Model to Analyze the Styrene Demand in the Brazilian Market
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