SECTION 2–SYSTEMS DYNAMICS- Amazon

This assignment is important, as it continues the development of the organizational model started last week. Models are representations of reality; for example, a map is not the territory, but a map is useful when traveling or exploring over time. Additionally, developing models is helpful in gaining a better understanding of whatever is being modeled. To the extent that a model can be digitized, simulation may be possible to gain additional understanding of how the dynamics play out, instead of having just a static model. Software packages such as NetLogo, iThink, Stella, and to some extent, Excel, are useful in exploring systems dynamics over time.
Stocks are accumulators in this context; they are not financial instruments. In systems terms, stocks are inventories of raw materials, finished goods, cash on hand, the number of employees, and so on. Flows illustrate the material, information, and energy that are input to and from stocks.
Feedback loops are either positive (amplifying) or negative (goal-seeking) structures that affect flows and stocks. More specifically, flows represent the rate of change in stocks and are measured over time. For example, a company might have $1,000,000 cash on hand in a bank account earning 2% interest. A positive feedback loop would be adding the 2% interest to the account each time period and not taking anything out. The interest rate remains the same, but as 2% is continually added, the principle becomes larger, and the 2% of this larger amount becomes larger as well, thus increasing the size of the bank account. An example of a negative feedback loop is a company of 500 people looking to hire 20 more employees. Thus, 20 employees is the target, and people are hired until reaching 20.
Please include the following
Evaluate at least three stocks and associated flows in your selected organization.
Evaluate at least one positive feedback loop in your selected organization.
Evaluate at least two examples of how understanding stocks, flows, and feedback loops might improve decision making within the organization.
Meadows, D. H. (2008). Thinking in systems: A primer. White River Junction, VT: Chelsea Green.
Chapter 1, “The Basics” (pp. 11–34)
Chapter 2, “A Brief Visit to the Systems Zoo” (pp. 35–72)
Chapter 3, “Why Systems Work So Well” (pp. 75–85)
Woodlock, D. (2009). Introduction to system dynamics Links to an external site. [Video file]. Retrieved from http://www.youtube.com/watch?v=iwrni8BvrbY
Note: The approximate length of this media piece is 10 minutes.
Woodlock, D. (2010). Introduction to stock and flow diagrams Links to an external site. [Video file]. Retrieved from https://www.youtube.com/watch?v=c27Rbmix6sE
Note: The approximate length of this media piece is 8 minutes.
Note: Stocks in this context are not stocks as in stocks and bonds! Stocks are something that can be accumulated, and, yes, stocks can be accumulated or aggregated in a stock portfolio. Thus, while perhaps weird, you could have stock of stocks! But stock is an accumulation, not a financial instrument in this class and in systems science.