Figures and Tables excerpted from Business Dynamics: Systems Thinking and Modeling for a Complex World Chapter 8 John D. Sterman Massachusetts Institute of Technology Sloan School of Management Figures and Tables excerpted from BUSINESS DYNAMICS: SYSTEMS THINKING AND MODELING FOR A COMPLEX WORLD John D. Sterman Published by Irwin/McGraw-Hill, an imprint of the McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020. Copyright  2001 by the McGraw-Hill Companies, Inc. All rights reserved. The contents, or parts thereof, may be reproduced in print form solely for classroom use with provided such reproductions bear copyright notice, but may not be reproduced in any other form or for any other purpose without the prior written consent the McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Business Dynamics

Figure 8-1 Growth and goal seeking: structure and behavior Business Dynamics

Figure 8-2 First order, linear positive feedback system: structure and examples Business Dynamics

Phase plot for the first-order, linear positive feedback system Figure 8-3 Phase plot for the first-order, linear positive feedback system Business Dynamics

Figure 8-4 Exponential growth: structure (phase plot) and behavior (time plot) The fractional growth rate g = 0.7%/time unit. Initial state of the system = 1 unit. Points on plot show every doubling (10 time periods). Business Dynamics

Figure 8-5 Exponential growth over different time horizons The state of the system is given by the same growth rate of 0.7%/time period in all cases (doubling time = 100 time periods). Business Dynamics

Figure 8-6 First-order linear negative feedback: structure and examples Business Dynamics

Figure 8-7 Phase plot for exponential decay via linear negative feedback Business Dynamics

Figure 8-8 Exponential decay: structure (phase plot) and behavior (time plot) The fractional decay rate d = 5%/time unit. Initial state of the system = 100 units. Business Dynamics

First-order linear negative feedback system with explicit goals Figure 8-9 First-order linear negative feedback system with explicit goals Business Dynamics

Figure 8-10 Phase plot for first-order linear negative feedback system with explicit goal Business Dynamics

Exponential approach to a goal Figure 8-11 The goal is 100 units. The upper curve begins with S(0) = 200; the lower curve begins with s(0) = 0. The adjustment time in both cases is 20 time units. Business Dynamics

Figure 8-12 Relationship between time constant and the fraction of the gap remaining Business Dynamics

Figure 8-13 Sketch the trajectory for the workforce and net hiring rate.. Business Dynamics

Figure 8-14 Sketch the trajectory for the workforce and net hiring rate when the desired workforce increases linearly. Business Dynamics

Figure 8-15 A linear first-order system can generate only growth, equilibrium, or decay. Business Dynamics

Figure 8-16 Causal diagram for population growth in a fixed environment Business Dynamics

Figure 8-17 What is the relationship between population density and the fractional growth rate? Business Dynamics

Figure 8-18 Nonlinear relationship between population density and the fractional growth rate. Business Dynamics

Figure 8-19 Phase plot for nonlinear population system Business Dynamics

Figure 8-20 Nonlinear population growth: time domain Business Dynamics