Question: You are needed to develop the model based on the given case study.: 1) Vensim model 2) Ms Word The following is an extract from

You are needed to develop the model based on the given case study.: 1) Vensim model 2) Ms Word The following is an extract from an interview with a pineapple jam producer. He wants to better understand how possible changes in the country's tax regime may affect his business: "The pineapple jam making process involves the planting of young pineapples, then nurturing the young pineapples until they have matured (after 4 months) and produce matured pineapples. The pineapples are then harvested (takes 1 month) and the harvested pineapples used to produce pineapple jam (this process takes 1 month). It is expected that a one-month stock of pineapple jam should be held at any point in time. If the stock of pineapple jam is in excess of this amount, then the retail price of pineapple jam will fall, whereas a shortage of pineapple jam will create an increase in the retail price of pineapple jam. A change in the retail price of pineapple jam will cause a change in the amount of pineapple jam consumption by each person each month. The amount of new young pineapple planted is dependent upon the amount of harvested pineapple. However, this is also affected by the cash flow of the pineapple jam makers. This position is determined from the profit per litter of jam sold. The level of taxation on pineapple jam makers will also reduce the profit per litter." The importing and exporting of pineapple jam obviously affect many of the variables discussed above: However, this is only intended to be preliminary study and so will exclude the effects of importing and exporting at this stage. Additional information on case study problem Based on data given, currently there are: 5000 litters of pineapple jam in stock 50 hectares of matured pineapples 2500 consumers in the country You can obtain, on average, 100 litter of pineapple jam per hectare of harvested pineapples Retail price of pineapple jam is RM6 per litter Pineapple jam makers make profit 50% of retail price Pineapple jam makers are taxed at RMI per litter QUESTIONS a) Develop a causal loop diagram to represent the basic idea (mental model) of the problem how the polarity sign of each variable. (Note: use the variables names as highlighted in the case description). (12 Marks) b) Based on the answer in (a), sketch any TWO (2) close loops derived from the causal loop diagram. State the type of each whether REINFORCING or BALANCAING loop. (6 Marks) c) Based on the given description and your answer in (a), determine the type of the following variables. (Hint: e.g. STOCK, INFLOW, OUTFLOW, AUXILLIARY). (4 Marks) d) Convert the causal loop diagram in answer (a) into a stock flow diagram. (Hint: use all variables that are stated in case description) (10 Marks

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