System dynamics method Assignment

The system dynamics method was created in 1950s by MIT Professor Jay Forrester.Drawing on his science and engineering background, Forrester sought to use thelaws of physics, in particular the laws of electrical circuits, to investigate economicand social systems.
Today, system dynamics is typically used in long-term, strategic models, and itassumes high levels of object aggregation: SD models represent people, products,events, and other discrete items by their quantities.System dynamics is a methodology to study dynamic systems. It suggests you:
Model the system as a causally closed structure that defines its ownbehavior.
Discover the system's feedback loops (circular causality) balancing orreinforcing. Feedback loops are the heart of system dynamics.
Identify stocks (accumulations) and flows that affect them.
Stocks are accumulations and characterize the system state. They are the memoryof the system and sources of disequilibrium. The model works only with aggregates- the stocks items are indistinguishable. Flows are the rates at which these systemstates change.
If youre having difficulty distinguishing between stocks and flows, consider howwe measure them. Stocks are usually expressed in quantities such as people,inventory levels, money, or knowledge, while flows are typically measurements ofquantities in a given time period such as clients per month or dollars per year.