Consider the following Stock-flow diagram. It depicts a situation where a car dealer tries to ensure adequate supply of cars on her car lot to meet demand.
i. In 2-3 paragraphs describe the “story” that this diagram is depicting. State any assumptions that you make clearly.
ii. Modify the diagram to incorporate the following delays (these will appear as converters or parameters in the diagram). A delay because the dealer averages sales over 5 days before she decides that there is a real trend in sales for her to react to. Call this the “perception delay”. A second delay has to do with the fact that she does not order the required number of cars in one go. She makes up only one-third of the shortfall in each order. Call this the “response delay”. The final delay is due to the fact that from the receipt of the order, the manufacturer takes 5 days to deliver the order. Call this the “delivery delay”. Incorporate these delays in the diagram (you may mark up the diagram by hand).
This part seeks to help you explore the notion of systems thinking and its application in “real world” problems. Through this exploration it seeks to help you form an informed opinion of the benefits or otherwise of systems thinking.
I will expect a high degree of engagement and scholarship in your response to this topic.
Consider the current/recent debate on carbon pricing in Australia. The debate continues even though the law for carbon pricing has been passed by the parliament. Research the literature regarding this debate. As well as using scholarly sources, you may use media reports and other sources for your information, but they need to be reliable, and need to be acknowledged.
Assume that the motivation behind pricing carbon is to enable the economy to move towards becoming a low-carbon economy, with greater use of renewable energy sources.
i. Construct a Causal Loop Diagram (CLD) that depicts the argument FOR carbon pricing. You will need to identify appropriate variables from your research to do this.
ii. Construct a second CLD that depicts the arguments AGAINST carbon pricing. You will need to identify appropriate variables from your research to do this.
iii. Consolidate these two CLDs to provide a (relatively) complete picture of the debate. In your consolidated CLD include and highlight any key variables influencing carbon reduction that you believe have not been considered by either side of the argument. Show how these variables affect the situation.
Comment on the extent of systems thinking evident in the arguments captured by your CLDs.
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