Process / pipelineSimulation / optimization

Stochastic System Dynamics — Probabilistic Stock-Flow Simulation

Stochastic System Dynamics (SSD) extends conventional system dynamics by replacing fixed parameter values and deterministic flow equations with probability distributions and random draws. Running many replications of the stock-flow model yields probabilistic trajectories — confidence bands rather than single lines — enabling rigorous uncertainty quantification and risk analysis in complex feedback systems such as epidemic models, supply chains, and energy policy scenarios.

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Sources

  1. Sterman, J.D. (2000). Business Dynamics: Systems Thinking and Modeling for a Complex World. Irwin McGraw-Hill. ISBN: 978-0072389159
  2. Rahmandad, H., Sterman, J.D. (2008). Heterogeneity and network structure in the dynamics of diffusion: Comparing agent-based and differential equation models. Management Science, 54(5), 998-1014. DOI: 10.1287/mnsc.1070.0787

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Referenced by

ScholarGateStochastic System Dynamics (Stochastic System Dynamics (SSD)). Retrieved 2026-06-04 from https://scholargate.app/en/simulation/stochastic-system-dynamics