(Now available from Productivity Press, Cambridge, Mass.) Useful as both a text and a working resource, this volume contains 36 chapters (and 4 appendixes) illustrating the application of system dynamics to overall strategic planning and managerial problem-solving in the corporate functional areas of manufacturing, marketing and distribution, research and development, and finance and control. In addition, a final section treats the systems ysis of societal problems that impinge on a manager's social responsibilities. Many of the chapters provide full descriptions of the modeling processes and implemented results, and in nine cases the computer models are completely documented with listings of the model equations. This book is the first attempt to compile real managerial uses of the system dynamics approach, and the first volume since Forrester's Industrial Dynamics (MIT Press, 1961) to focus upon corporate system dynamics models. In draft form the book has been used as the basis for teaching system dynamics in the Sloan School's regular graduate programs and its middle-management executive development programs. In his introductory chapter on the concepts, philosophy, and methodology of system dynamics, the editor clearly identifies the underlying premises: "The system dynamics philosophy rests on a belief that the behavior (or time history) of an organization is principally caused by the organization's structure. The structure includes not only the physical aspects of plant and production process but, more importantly, the policies and traditions, both tangible and intangible, that dominate decision-making in the organization. Such a structural framework contains sources of amplification, time lags, and information feedback similar to those found in complex engineering systems. Engineering and management systems containing these characteristics display complicated response patterns to relatively simple system or input changes....
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