System Dynamics and Feedback Loop

In: Other Topics

Submitted By SissiChen
Words 1255
Pages 6
Topic: System dynamics and feedback loop
System dynamics is an approach to understanding the behavior of complex systems over time. It deals with internal feedback loops and time delays that affect the behavior of the entire system. System dynamics use feedback loops and stocks and flows to study complex and non-linear systems. Dynamics of the system contain quantities that vary over time.
There are several laws of Fifth Discipline showing how system dynamic works. 1) For every action, there is a reaction. It is self-proofed in the beer game. Every order has to be fulfilled, either in the current week (if enough stock is available) or in one of the next weeks (items go on backorder). 2) Short-term improvements often lead to long term difficulties. In the beer game, it’s always a tradeoff between fulfilling demand and minimizing cost. Timely delivery calls for enough inventory, while cumulative inventory results in climbing inventory cost, due to more people to handle the beer and more storage space, and there is also a possibility that the beer will be left in your inventory when the total period is over or the redundant beer might go bad since it cannot be kept long. 3) Cause and effect are not necessary closely related, either in time or in space. Sometimes solutions implemented here and now will have impacts far away at a much later time. In the beer game, it is not possible for any one component of the system to be immediately aware of the actions and needs of all other organizational components. A change of strategy for ordering can lead to a better condition, though may not be real-time. 4) The entirety of an issue is often more than the simple aggregation of the components of the issue. This is fundamental to understand how single parts in a system influence each other and how individual thinking differs from systemic thinking. The lesson…...

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