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This paper aims to analyse the main variables and causal relationships in the system structure of the diversification of non-agricultural activities on agricultural holdings using system dynamics (SD) modelling. The SD model aims to simulate depictions of the behaviour of the real system while testing the effects of alternative decisions over time.

An SD methodology was chosen to model diversification in farm tourism.

A system approach increases the authors’ understanding of the transition of agricultural holdings to farm tourism. The results indicate that the transition to farm tourism depends on the level of tourism development in a certain area. The system is influenced by subsidies allocated by authorities to expand primary agricultural activities. The model describes a situation in which the tourism and agricultural industries have been affected by the COVID-19 pandemic.

The research is limited by the small set of available data due to the limited number of farms in Slovenia. One major problem is the difference in statistical data on the same activity collected from different institutions in Slovenia.

The paper includes implications for understanding the transition process to farm tourism, allowing policymakers to experiment with subsidies and promotion to explore the efficacy and efficiency of proposed policies.

This study provides a structured, systemic view of the diversification of non-agricultural activities on agricultural holdings, where the simulation results are a reliable reflection of the behaviour of the actual system being modelled.

This paper aims to describe the development and application of a manpower planning system for the Slovenian armed forces using a system approach, system dynamics (SD) and numerical optimization.

The model of the hierarchical manpower system was developed by SD methodology and formulated in discrete time space. The problem of tracking the goal trajectories in the eight topmost ranks at the prescribed boundaries was solved by application of the quadratic performance index and finite automata (FA) which was used for classification of acceptable strategies. Genetic algorithms (GA) as well as pattern search were compared at the numeric optimization.

Employing SD and a system approach increases the understanding of the system control. The definition of an optimum strategy, which would consider only target values for ranks within prescribed parameter boundaries, could provide an undesired oscillatory solution. Inclusion of rules by FA to determine acceptable strategies based on the time response of a strategy provided acceptable, nonoscillatory solutions. GA and pattern search were considered where pattern search was shown to be significantly more suitable for the task of control strategy determination.

The developed system and methodology was applied by the Slovenian Armed Forces in the process of restructuring.

The developed approach permits a moderate transition to the new desired structure. Restructuring without a clear understanding of the system structure and dynamics might result in undesired social impacts such as strikes and riots.

Provision of the systemic view of the hierarchical manpower system and application of FA to determine the proper control of a complex system.