S-shaped (logistic) growth of a company

Model : cogrowth1
Simile version : 3.1+
Date added : 2003-06-25
Keywords : Business model ; Lumped model ;

Description

This models the changing size of the sales force of a company, using feedbacks between the size of the sales force, the success of this sales force in selling goods, and further recruitment.

Source: Andrew Ford (1999): Modelling the Environment, p.64

Files

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p064.sml

Diagram

Equations

Compartments:
	size of sales force
	Initial value = 50
	Rate of change =  + new_hires - departures
 
Flows:
	new hires = hiring_fraction*(budgeted_size_of_sales_force-size_of_sales_force)
	departures = size_of_sales_force*exit_rate
 
Variables:
	annual revenue in millions = widget_sales*widget_price/1000000
	budgeted size of sales force = sales_dept_budget*1000000/average_salary
	effectiveness in widgets per day = graph(size_of_sales_force)
	sales dept budget = fraction_to_sales*annual_revenue_in_millions
	widget sales = size_of_sales_force*effectiveness_in_widgets_per_day*365

Parameters:
	average salary = 25000
	exit rate = 0.2
	fraction to sales = 0.5
	hiring fraction = 1
	widget price = 100

Results

References

Ford, A (1999) Modeling the Environment.
Island Press. p.62

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