II
DYNAMIC MODELS OF INDUSTRIAL AND ECONOMIC ACTIVITY
Part II is more technical than Part I. It treats the nature of mathematical models, the principles of formulating industrial dynamics models, and the specific methodology to be used in Part III.
Chapter 4 classifies models, to help place the models of this book into the context of models as found in engineering, the physical sciences, and the social sciences.
Chapter 5 discusses the basis of model formulation, stressing the view that a model is for a purpose. The objective comes first to guide the model content.
Chapter 6 gives a simple model structure of alternating levels and flow rates into which can be cast the broad managerial systems investigations outlined in Part I.
Chapter 7 describes the system of equations that is used within the model structure of Chapter 6.
Chapter 8 introduces flow-diagram symbols to illustrate the relationships between system components.
Chapter 9 discusses the nature and the mathematical representation of delays which exist in all system actions and which are essential to an understanding of system dynamics.
Chapter 10 on policies and decisions treats the formal nature of decision making. It establishes the basis whereby the policy statements in a model are formulated to generate the system decisions through time.
Chapter 11 gives a basis for aggregating the separate items and events of a system into the essential main channels.
Chapter 12 describes the use of independent (exogenous) variables in dynamic-model experimentation.
Chapter 13 discusses the several viewpoints from which models must be judged in establishing their validity and in determining their utility.
Chapter 14 summarizes the principal points made in Part II.

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