Systems dynamics modeling was created by Jay Forrester in the 1950s at MIT to model social systems, which are more complex than physical systems. It uses causal loop and stock and flow diagrams to map out relationships and feedback within a system. Systems dynamics modeling helps decision making by examining the effects of different policies on system behavior and performance over time.

1. SYSTEMS DYNAMICS
MODELING
Decision Making
Support Tool

2. SESSION CONTENTS
Origins
Open Loop Thinking
Closed Loop Thinking
Systems Dynamics Modelling Tools
Simulation Lab
Conclusion

3. ORIGINS
Created by Dr. Jay Forrester in the mid-1950’s while at MIT
Dr. Forrester had background in EE and pioneer in early
digital computers. Inventor of Random Access Memory
Came to understand that social systems are much harder to
control than physical systems, and often source of difficulties
faced in projects
Evolved beyond methodology to thinking framework with
applications in numerous fields

4. OPEN LOOP THINKING

5. Problems with Open Loop Thinking
Assumes problem is an isolated
event to be solved in isolation
Linear thinking - does not consider
feedback from others
OPEN LOOP THINKING

6. CLOSED LOOP THINKING

7. CLOSED LOOP THINKING

8. SYSTEMS DYNAMICS
MODELLING TOOLS
Causal Links

9. SYSTEMS DYNAMICS
MODELLING TOOLS
Causal Loops

10. SYSTEMS DYNAMICS
MODELLING TOOLS
Causal Loops

11. SYSTEMS DYNAMICS
MODELLING TOOLS
Causal Loops

12. SYSTEMS DYNAMICS
MODELLING TOOLS
Causal Loops

13. SYSTEMS DYNAMICS
MODELLING TOOLS
Causal Loops (delay)

14. SYSTEMS DYNAMICS
MODELLING TOOLS
Stock & Flow Diagram

15. SYSTEMS DYNAMICS
MODELLING TOOLS
Stock & Flow Diagram

16. SYSTEMS DYNAMICS
MODELLING TOOLS
Stock & Flow Diagram

17. SIMULATION
LAB
Model by Stella ® Online

18. CONCLUSION
Systems Dynamics Models help us in decision making
by examining the effect of different policies on the
behaviour and performance of the systems under
consideration and their interaction with each other
Systems boundaries help us narrow down the scope of
complexity of the model investigated
“Essentially, all models are wrong, but some are useful”
George E.P. Box (Statistician)

19. REFERENCES
•Paine, J. (2020, January). System Dynamics:Systems Thinking And
Modeling For A Complex World. IAP 2020 SESSION.
•MIT Center for Transportation & Logistics. (n.d.). Supply Chains as
Complex Systems. SC3x Supply Chain Dynamics.
•MIT Center for Transportation & Logistics. (n.d.). System Dynamics:
Modeling the System. SC3x Supply Chain Dynamics.