Drug shortages pose critical risks to patient care and healthcare systems worldwide, yet the effectiveness of regulatory interventions remains poorly understood due to information asymmetries in pharmaceutical supply chains. We propose ShortageSim, which addresses this challenge by providing the first simulation framework that evaluates the impact of regulatory interventions on competition dynamics under information asymmetry. Using Large Language Model (LLM)-based agents, the framework models the strategic decisions of drug manufacturers and institutional buyers, in response to shortage alerts given by the regulatory agency. Unlike traditional game theory models that assume perfect rationality and complete information, ShortageSim simulates heterogeneous interpretations on regulatory announcements and the resulting decisions. Experiments on self-processed dataset of historical shortage events show that ShortageSim reduces the resolution lag for production disruption cases by up to 84%, achieving closer alignment to real-world trajectories than the zero-shot baseline. Our framework confirms the effect of regulatory alert in addressing shortages and introduces a new method for understanding competition in multi-stage environments under uncertainty. We open-source ShortageSim and a dataset of 2,925 FDA shortage events, providing a novel framework for future research on policy design and testing in supply chains under information asymmetry.

Modern engineering, spanning electrical, mechanical, aerospace, civil, and computer disciplines, stands as a cornerstone of human civilization and the foundation of our society. However, engineering design poses a fundamentally different challenge for large language models (LLMs) compared with traditional textbook-style problem solving or factual question answering. Although existing benchmarks have driven progress in areas such as language understanding, code synthesis, and scientific problem solving, real-world engineering design demands the synthesis of domain knowledge, navigation of complex trade-offs, and management of the tedious processes that consume much of practicing engineers' time. Despite these shared challenges across engineering disciplines, no benchmark currently captures the unique demands of engineering design work. In this work, we introduce EngDesign, an Engineering Design benchmark that evaluates LLMs' abilities to perform practical design tasks across nine engineering domains. Unlike existing benchmarks that focus on factual recall or question answering, EngDesign uniquely emphasizes LLMs' ability to synthesize domain knowledge, reason under constraints, and generate functional, objective-oriented engineering designs. Each task in EngDesign represents a real-world engineering design problem, accompanied by a detailed task description specifying design goals, constraints, and performance requirements. EngDesign pioneers a simulation-based evaluation paradigm that moves beyond textbook knowledge to assess genuine engineering design capabilities and shifts evaluation from static answer checking to dynamic, simulation-driven functional verification, marking a crucial step toward realizing the vision of engineering Artificial General Intelligence (AGI).