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System Dynamics is a general framework for looking at complex dynamics systems. It is, therefore, not surprising that it has been applied to a wide range of problems. Some of the more common areas of application of system dynamics method are:
The primary benefit of System Dynamics is to help design a better policy. A policy is a set of rules that govern the decision making. We influence the world around us by our decisions. Normally these decisions are made using very simple heuristic rules that are rooted in our past experiences. In most cases, these rules are hidden from observation but they have a major impact on the quality of our decisions. The System Dynamics modeling process forces us to bring these rules to the front and critically examine them. The simulation will enable us to see the long term impact of these rules. We can then use the simulation model to design a more practical policy that will achieve its intended goals.
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