Yang, Ching T. with Ansheng Cao, "Using System Dynamics Method to Analyse an Enterprise", 1988
This paper establishes a system dynamics model to analyse a dynamic productive procedure of an enterprise in Shanghai. The model consists of five sectors, order and supply sector, production sector, material sector, advertising sector and financial sector.There are many products which the enterprise expects to produce, and in the model these products are transformed into two standard products according to the kind of products. The paper analyses the impacts of some soft factors, such as worker's quality, bonus, advertising, etc., on the profit, and also the policy of purchasing materials. The model presents the strategy of how to work out plans between two standard products when the input surpasses the productive capacity of the enterprise.The model is run by using real initial input values in 1985 and 1986. The results are very close to real situations of the enterprise. The sensitivity tests shows that the model is insensitive. So it is adquate to consider that the model is reliable and can be used as basis for dicision making by managers.
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