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IE 604: System Dynamics Modelling and Analysis

Prerequisite:  Exposure to relevant concepts at undergraduate level and instructor consent


This course will cover basics of modeling and simulation using system dynamics methodology, and control theoretic concepts for analysis of such models.

Topics include:

  • Introduction to systems thinking, modeling and dynamic simulation, Causal loops and feedbacks, building blocks of system dynamics: stocks and levels,

  • Equations underlying the modelling, Positive and negative feedback loops, Dynamics of growth, modelling delays, co-flows & decision making, Capturing nonlinear relationships, instability and oscillation, business and supply chain models, Model validation and testing,

  • Control theory concepts of transfer functions, time domain analysis, state space formulation, solution of the state equation and determination of the system's response. Characteristic equation and roots; Frequency-domain techniques; Stability analysis, and design of feedback regulators, controllability and observability.

  • Applications will be presented to emphasis cross-functional management issues, new product development, management of fluctuating workloads, market growth and stagnation, and project management.


  • John Sterman, Business Dynamics: Systems Thinking and Modeling for a Complex World, Irwin/McGraw-Hill (2000)
  • J. W. Forrester, Industrial Dynamics, Cambridge MA: Productivity Press (1961)
  • Michael R. Goodman, Study Notes in System Dynamics, Pegasus Communications (1989)
  • Sushil, System Dynamics: A Practical Approach for Managerial Problems, Wiley Eastern (1993)
  • R.G. Coyle, System Dynamics Modelling: A Practical Approach, Chapman & Hall/CRC (1996)
  • Craig W. Kirkwood, System Dynamics: A Quick Introduction, Arizona State University (1998)
  • Peter Senge, The Fifth Discipline, Currency (2006)
  • Norman Nise, Control Systems Engineering, 4th ed., John Wiley and Sons (2004)
  • K. Ogata, System Dynamics, 4th ed., Prentice Hall (2003)
  • K. Mougdalya, Digital Control, John Wiley & Sons (2007)