Sankey charts are a type of diagram that can be used to visualize how different components are related to each other in a system. They have several applications, including understanding hierarchies and interdependencies within a system.
The first step in creating a sankey chart is choosing the appropriate categories or subjects of the hierarchy or interdependencies you want to visualize. These categories should be coherent and should represent the same units or elements in the system.
Once you have chosen the appropriate categories, you need to decide on the direction for the flow of flowlines. Sankey charts can have positive forward flow lines (flowing from left to right) or negative backward flow lines (flowing from right to left). The direction of the flowlines can help in identifying which components are the causative factors and which components are the beneficiaries.
The flowline connecting two categories should also be labeled with a value, which represents the amount of flow between the two categories. This is useful for understanding the levels of interdependency between the categories and for visualizing how resources flow or flow out of the system.
Sankey charts can be used to visualize hierarchical structures, to represent the flow of resources or funds from one source to another, to depict the relationships between two or more variables, and to show the trade-offs between different variables. They are particularly useful for visualizing complex systems.
Sankey chart applications can include understanding supply and demand in a market, analyzing the flow of investments in a portfolio, simulating the movement of people and goods in a model, and much more.
Sankey charts are a powerful tool for understanding complex systems, and they are a visual representation of hierarchical relationships and interdependencies, which can be difficult to visualize in other ways. They can help to identify areas for improvement and make decisions based on the relationships between different components of a system.
In summary, sankey charts can be a powerful tool for visualizing hierarchical structures and relationships between categories in complex systems. They are useful for identifying causality and interdependencies, and can be used for various applications such as understanding supply and demand, simulating the movement of people and goods, and much more.

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