This is an archived course. A more recent version may be available at ocw.mit.edu.

 

Readings

Course Textbook

[Sterman]= Buy at Amazon Sterman, John. Business Dynamics: Systems Thinking and Modeling for a Complex World. New York, NY: McGraw-Hill, 2000. ISBN: 9780072389159.

SES # TOPICS READINGS
1 System dynamics in action: Re-engineering the supply chain in a high-velocity industry Chapter 11 in [Sterman].
2 Formulating simulation models of simple systems  
3 Managing instability part 1: Formulating and testing robust models of business processes Chapter 13 in [Sterman], sections 13.1, 13.2.1-13.2.9, 13.3, and 13.4.
4 Managing instability part 2: The Beer Game (Bullwhip) effect Chapter 17 in [Sterman], sections 17.1-17.3.
5 Managing instability part 3: Forecasting and feedback, how (not) to forecast Chapter 16 in [Sterman].
6 Cutting corners and working overtime: Service quality management

Oliva, Rogelio, and John Sterman. "Death Spirals and Virtuous Cycles: Human Resource Dynamics in Knowledge-Based Services." In The Handbook of Service Science. Edited by Paul P. Maglio, Cheryl A. Kieliszewski, and James C. Spohrer. Springer, 2010.

Chapter 14 in [Sterman], sections 14.1-14.4.

7 Managing instability part 4: Business cycles, real estate crises and speculative bubbles Chapter 17 in [Sterman], sections 17.4-17.5.
8 Guest lecture: Jay W. Forrester Buy at Amazon Forrester, Jay W. "From the Ranch to System Dynamics: An Autobiography." In Management Laureates: A Collection of Autobiographical Essays. Vol. 1, edited by Arthur G. Bedeian. Greenwich, CT: JAI Press, 1992. ISBN: 9781559384698.
9 System dynamics in action: Applications of system dynamics to environmental and public policy issues Buy at Amazon Meadows, Donella H. "Living Lightly and Inconsistently on the Land." In The Global Citizen. Washington, DC: Island Press, 1991. ISBN: 9781559630580.
10 Process improvement and the dynamics of organizational change  
11 Overcoming the service quality death spiral Oliva, Rogelio. "Tradeoffs in Responses to Work Pressure in the Service Industry." California Management Review 43, no. 4 (2001): 26-43.
12 Late, expensive, and wrong: The dynamics of project management

Chapter 2 in [Sterman], section 2.3.

Chapter 6 in [Sterman], section 6.3.4.

13 Project management (cont.): Firefighting in new product development Repenning, Nelson, and John Sterman. "Nobody Ever Gets Credit for Fixing Problems that Never Happened." California Management Review 43, no. 4 (2001): 64-88.
14

System dynamics in action: The implementation challenge

Conclusion: How to keep learning, follow-up resources, career opportunities, and course evaluations

Chapter 22 in [Sterman].