Dejana Zlatanovic

Faculty of Economics University of Kragujevac


The Models represent the key methodological tool for management problems solving in System Dynamics (SD) as a functionalist systems methodology. Above all, it is about mathematical models, built according to appropriate feedback structures, i.e. specifi c elements and fl ows that form feedback loops. Since SD is based on the assumption that a system structure represents the behavioral key determinant, SD models provide an eff ective prediction of the future system behavior. The paper focuses on the modeling process in SD, as a complex, iterative process, consisting of the following phases: model conceptualization, formulation, testing and implementation. Although being extremely useful in solving numerous organizational managing problems, SD models have certain disadvantages as a consequence of their quantitative nature. Qualitative modeling and group model-building, as possible directions for further SD development, are appropriately important in SD models` defi ciencies elimination.


Keywords: System Dynamics, modeling process, System Dynamics models, management problems solving

JEL Classification: M10

Economic Horizons, 2012, Vol. 14, No. 1, pp. 25-38. doi: 10.5937/ekonhor1201023Z

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