Business Dynamics: Systems Thinking and Modeling for a Complex World (Int'l Ed)

1st Edition
0071179895 · 9780071179898
Today’s leading authority on the subject of this text is the author, MIT Standish Professor of Management and Director of the System Dynamics Group, John D. Sterman. Sterman’s objective is to explain, in a true textbook format, what system dynami… Read More
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Introduction

Part I. Perspective and Process

1. Learning In and About Complex Systems

2. System Dynamics In Action

3. The Modeling Process

4. Structure and Behavior of Dynamic Systems

Part II. Tools for Systems Thinking

5. Causal Loop Diagrams

6. Stocks and Flows

7. Dynamics of Stocks and Flows

8. Closing the Loop: Dynamics of Simple Structures

Part III. The Dynamics of Growth

9. S-Shaped Growth: Epidemics, Innovation Diffusion, and the Growth of New Products

10. Path Dependence and Positive Feedback

Part IV. Tools for Modeling Dynamic Systems

11. Delays

12. Coflows and Aging Chains

13. Modeling Decision Making

14. Forming Non-linear Relationships

Part V. Instability and Oscillation

15. Modeling Human Behavior: Bounded Rationality or Rational Expectations?

16. Forecasts and Fudge Factors: Modeling Expectation Formation

17. Supply Chains and the Origin of Oscillations

18. Managing Supply Chains in Manufacturing

19. The Labor Supply Chain and the Origin of Business Cycles

20. The Invisible Hand Sometimes Shakes: Commodity Cycles

Part VI. Validation and Model Testing

21. Truth and Beauty

Part VII. Commencement

22. Challenges for the Future

Appendix A: Numerical Integration

Appendix B: Noise

References

Index

Today’s leading authority on the subject of this text is the author, MIT Standish Professor of Management and Director of the System Dynamics Group, John D. Sterman. Sterman’s objective is to explain, in a true textbook format, what system dynamics is, and how it can be successfully applied to solve business and organizational problems. System dynamics is both a currently utilized approach to organizational problem solving at the professional level, and a field of study in business, engineering, and social and physical sciences.
Incorporates a modeling approach: Modeling and models help students learn to visualize a business organization through structures and policies that create dynamics and regulate performance. Students gain a better understanding of how an organizations performance is related to its internal structure and operating policiesas well as to the operating policies of its customers, competitors, and suppliers.
Offers role-playing experiential exercises: The book offers diverse modes of learning, including role-playing exercises. This active learning approach engages students, vitalizes the subject matter, and helps develop students abilities to think on their feet.
Utilizes case studies depicting real companies throughout: Case studies of successful design and implementation strategies are used to illustrate systems dynamics principles. This approach offers both realism and proof of the effectiveness of system dynamics principles when applied, in a practical fashion, to real business problems and situations.
Emphasizes the use and construction of simulation models and flight simulation exercises: Simulation models and flight simulators are used to develop principles of policy design. This permits both the exploration and the understanding of such complex issues as fluctuating sales, production and earnings, market growth and stagnation, the diffusion of new technologies, the use and reliability of forecasts, and the rationality of business decision-making.
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