System Dynamics as a Structural Theory in Operations Management

Abstract

T he purpose of the paper is to demonstrate the usefulness of (1) system dynamics as a structural theory for operations management and (2) system dynamics models as content theories in operations management. The key findings are that, although feedback loops, accumulation processes, and delays exist and are widespread in operations management, often these phenomena are ignored completely or not considered appropriately. Hence, it is reasoned why system dynamics is well suited as an approach for many operations management studies, and it is shown how system dynamics theory can be used to explain, analyze, and understand such phenomena in operations management. The discussion is based on a literature review and on conceptual considerations, with examples of operations management studies based on system dynamics. Implications of using this theory include the necessary re-framing of some operations management issues and the extension of empirical studies by dynamic modeling and simulation. The value of the paper lies in the conceptualization of the link between system dynamics and operations management, which is discussed on the level of theory.

Crowdsourcing Last Mile Delivery: Strategic Implications and Future Research Directions

“…Discrete event simulations have a rich history of use in supply chain management research, as this method provides a controlled environment in which to analyze phenomena from a systems perspective (Bowersox and Closs 1989;Gr€ oßler et al 2008;Evers and Wan 2012). This perspective provides the analyst with the ability to create models that can lead to a greater understanding of complex systems, such as supply chains (Bowersox and Closs 1989;Schwaninger and Gr€ osser 2008;Manuj et al 2009).…”

Hockey Stick Phenomenon: Supply Chain Management Challenge in Brazil

“…Taylor & Taylor, 2009). System dynamics is an empirical approach that, despite being largely descriptive, also has normative characteristics and adapts to diverse problems in the operations management and supply chain management area (Grobler, Thun, & Milling, 2008). These characteristics make the method well-suited for this study's objectives to find causes of, impacts from, and alternatives to the hockey stick phenomenon and follow recommendations regarding how to select which approach to take (A.…”

Modeling chronic disease patient flows diverted from emergency departments to patient-centered medical homes

“…The SD model developed in this paper describes the complex interrelationships between capacity, costs and patients. This method presents the uses of time delay functions, feedback loops, or exponential growth (Gröβler et al 2008), along with other nonlinear effects (Davis et al 2007), expressing the uncertainty of the outcomes stemming from these relations. The mix of these features affects the behavior of variables (Sterman 2000a), which inject some variability in the entire system.…”