This chapter is focused on the conceptual issues in the development, analysis and use of a model. After working through this chapter you should have a better understanding of how to think about, and work through, a dynamic model with Vensim.
This is a simple, but quite valuable model to study. It demonstrates how the interaction of inventory management policies and hiring practices can lead to instabilities in production. It also demonstrates the somewhat counterintuitive result that being more aggressive about hiring and laying people off can actually lead to a more stable workforce.
