In this book it is first shown that system dynamics is a management science methodology which deals with the ability to control managed systems as time passes and external shocks occur. Systems dynamics deals with the broad behavior of the system and how it influences its own evolution into the future. It is shown that these can be seen as the strategic issues which concern top management in the organization. System dynamics models come in two equivalent forms: the influence diagram and, where appropriate, a simulation model. These two forms make it possible to communicate easily and effectively with the client or sponsor of the work. Many case studies are presented in the book proving that system dynamics is particularly applicable to strategic problems in business and government. The method is based on the building of diagrams of the influences at work in the system. The book brings readers to a level of technical competence at which they can build, analyze and optimize system dynamics models of serious problems. The treatment covers the type of management problem which system dynamics addresses and how it relates to top management concerns in business and government. The technical treatment covers: influence diagrams, principles and techniques of simulation, the formulation and analysis of models, the theory and practice of dynamic optimization. The text closes with a survey of the applications of system dynamics with a large number of models and influence diagrams used in the book being attached on a disk. Engineers, management consultants and management scientists in industry, government and defense will find this book of value, as will undergraduates and postgraduates following courses in management science and business administration.
Reviewer: G.S.Stavrakakis (Chania)