SYSTEM DYNAMICS

Prepared By :
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 Contents
• Evolution
• Implementation
• Conclusion
• Bibliography
 What is System Dynamics??
• System dynamics is a method for studying the
world around us.
• It deals with understanding how complex
systems change over time.
• Example : 1. Forces responsible for the growth
or decline of life insurance companies.
2. Factors leading to decline of a
production unit.
 Evolution of system dynamics
•Created during the mid-1950s by
Professor Jay W. Forrester of
the Massachusetts Institute of Technology.
•WORLD WAR II
• WHIRLWIND I and SAGE projects
•Biggest impediment to progress comes, not from the
engineering side of industrial problem
• Problems General Electric during the mid-1950s.
• Use of hand simulations (or calculations) of the stock-
flow-feedback structure of the GE plants by Forrester.
Beginning of the field of system dynamics.
• Late 1950s move towards emerging field of system
dynamics
• Computer modeling stage : Richard Bennett created the
first system dynamics computer modeling language
called SIMPLE (Simulation of Industrial Management
Problems with Lots of Equations) in the spring of 1958.
• In 1959, Phyllis Fox and Alexander Pugh wrote the first
version of DYNAMO (DYNAmic MOdels), an improved
version of SIMPLE, system dynamics language that
became the industry standard for over thirty years.
• Urban dynamics : Collins thus became Forrester's
work-day neighbor, and the two began to engage in
regular conversations about the problems of cities
and how system dynamics might be used to address
the problems.  First major non-corporate application
of system dynamic.
• World Dynamics : 1970 , global crisis that may
appear sometime in the future.
• WORLD1 : First draft of a system dynamics model of
the world's socioeconomic system.
• WORLD2 : Forrester called the refined version of the
model WORLD2. Forrester published WORLD2 in a
book titled World Dynamics.