System Dynamics: Main Concepts



This chapter describes the process to construct a causal loop diagram and a flow diagram, which are the main systems dynamics tools. It also describes the steps to follow to construct a systems dynamics-based simulation model and the most significant tests to validate a dynamic simulation model. Finally, it characterizes the elements to construct a dynamic model for a traditional, reduced, e-shopping, EPOS and VMI supply chain.


Supply Chain Auxiliary Variable Inventory Cost Forecast Demand Production Order 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. W.R. Ashby, Design for a Brain (Wiley, New York, 1952)Google Scholar
  2. L. Von Bertalanffy, General System Theory: Foundations, Development Applications (George Braziller, New York, 1968)Google Scholar
  3. D. Berry, The Analysis, Modelling and Simulation of a Re-engineered PC Supply Chain. PhD Thesis. University of Wales, Cardiff, (1994)Google Scholar
  4. F. Campuzano (2006) Model of the Demand Variability Management in the Supply Chain. Analysis of the Bullwhip Effect (in Spanish). PhD Thesis. Universitat Politècnica de València, Departament of Business Management, CEL Price in 2006 to the Best Doctoral DissertationGoogle Scholar
  5. L. Couffignal, La cibernetique (PUF, Paris, 1966)Google Scholar
  6. S.M. Disney, The production and inventory control problem in vendor managed inventory supply chains. Ph.D. Thesis, Cardiff Business School, Cardiff University, UK, (2001)Google Scholar
  7. S.M. Disney, M.M. Naim, D.R. Towill, Dynamic simulation modelling for lean logistics. Int. J. Phys. Distrib. 27, 174–196 (1997)CrossRefGoogle Scholar
  8. S.M. Disney, D.R. Towill, The Impact of Vendor Managed Inventory on the Bullwhip Effect in Supply Chains. Proceedings of the 16th International Conference on Production Research, Prague, (2001)Google Scholar
  9. J. Edhill, The Application of Aggregate industrial dynamics techniques to manufacturing systems. PhD Thesis. University of Wales, Cardiff, (1990)Google Scholar
  10. J.W. Forrester, Industrial Dynamics (MIT Press and Wiley, New York, 1961)Google Scholar
  11. S. John, M.M. Naim, D.R. Towill, Dynamic analysis of a WIP compensated decision support system. Int. J. Manuf. Syst. Des. 1, 283–297 (1994)Google Scholar
  12. J. Lewis, An integrated approach to re-engineering material flow within a seamless supply chain. PhD Thesis. Cardiff University, Wales, (1997)Google Scholar
  13. J. Martín, Theory and Practical Exercises of System Dynamics. ed. by J.M. García, Barcelona, (2006)Google Scholar
  14. E.A. Silver, D.F. Pyke, R. Peterson, Inventory Management and Production Planning and Scheduling (Wiley, New York, 1998)Google Scholar
  15. J.D. Sterman, Business Dynamics: Systems Thinking and Modeling for a Complex World (McGraw-Hill Higher Education, New York, 2000)Google Scholar
  16. D.R. Towill, Dynamic analysis of an inventory and order based production control system. Int. J. Prod. Res. 20, 369–383 (1982)CrossRefGoogle Scholar
  17. N. Weiner, Cybernetics or Control and Communication in the Animal and the Machine (MIT Press, Cambridge, MA, 1948)Google Scholar

Copyright information

© Springer-Verlag London Limited  2011

Authors and Affiliations

  1. 1.Department of Business ManagementEscuela Técnica Superior de Ingeniería Industrial Technical University of CartagenaCartagena (Murcia)Spain
  2. 2.Research Centre on Production Management and Engineering (CIGIP) Department of Business ManagementUniversitat Politècnica de ValènciaAlcoySpain

Personalised recommendations