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System Dynamics is methodology that requires building the integrated system dynamics models using computer simulation to gain the insight of the social, economic, and business problems and keep on experimenting with the model to propose the alternative solutions to make the system better behaved. This paper attempts to describes the business models form simple to complex using system dynamics modeling while identifying the different facets of factory dynamics. Single stock Banana Shop to Multi-stock Complex Model Labour Intensive 3PL Logistics firm share the modelling steps and keep on adding the factory structures to make the business complex gradually. Each model helps to explore the different mode of behaviours. Production, inventory, workforce, information systems, shipments and customer orders are the dynamic variables which change over the period of time and all are interacting in the multi-stock complex 3PL logistic firm model. Model structures and interactions among of different variables not only give the model understanding but also reveal the policies to make the system better behaved. Feedback notion is other significant property for system dynamics models. Using the factory information, its dynamics is modelled step by step and its behavior is analyzed at each stage to gain the real-life wisdom. As we keep on adding the stocks and rates to improve the model of factory dynamics, each step highlights the model insight and understanding. Model validation is done after building the model while using different tests. Plausible policies are suggested on the basis of parametric changes and structural changes of the model that set the guidelines for policy formulation. This model development process indicates how a Systems Dynamics model addresses the corporate issues and designs the firm of its own choice.
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Yusuf et al. (2024) studied this question.
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