The field of system dynamics was created in 1956 under the leadership of MIT Professor Jay W. Forrester to evaluate how alternative policies affect growth, stability, fluctuation, and changing behavior in corporations, cities, and countries. Forrester founded the System Dynamics Program in the Alfred P. Sloan School of Management at MIT. John Sterman is currently Director of the System Dynamics Group at MIT. This text is a summary of the wisdom and knowledge gathered over more than twenty years of research dedicated to the study of practical methods for systems thinking and the dynamic modeling of complex systems. It is well written, easy to understand, and worthy of serious consideration.

Preface Part I. Perspective and Process 1. Learning in and about Complex Systems 2. System Dynamics in Action 3. The Modeling Process 4. Structure and Behavior of Dynamic Systems Part II. Tools for Systems Thinking 5. Causal Loop Diagrams 6. Stocks and Flows 7. Dynamics of Stocks and Flows 8. Closing the Loop: Dynamics of Simple Structures Part III. The Dynamics of Growth 9. S-Shaped Growth: Epidemics, Innovation Diffusion, and the Growth of New Products 10. Path Dependence and Positive Feedback Part IV. Tools for Modeling Dynamic Systems 11. Delays 12. Coflows and Aging Chains 13. Modeling Decision Making 14. Formulating Nonlinear Relationships 15. Modeling Human Behavior: Bounded Rationality or Rational Expectations? 16. Forecasts and Fudge Factors: Modeling Expectation Formation Part V. Instability and Oscillation 17. Supply Chains and th Origin of Oscillations 18. The Maunfacturing Supply Chain 19. The Labor Supply Chain and the Origin of Business Cycles 20. The Invisible Hand Sometimes Shakes: Commodity Cycles Part VI. Model Testing 21. Truth and Beauty: Validation and Model Testing Part VII. Commencement 22. Challenges for th Future Appendix A. Numerical Integration Appendix B. Noise References Index