System dynamics is the study and application of how the system works and how it could be improved upon and made more efficient.
From the management point of view, system dynamics is an indispensable tool without which any attempt at effective decision making is fraught with grave risks and danger to the enterprise. Even so, decisions based on meticulous implementation of system dynamics are no guarantee for sure success, although they may help to some extent in maintaining the status quo after thorough trial and testing.
As an aid to decision making, system dynamics has no alternative. It monopolizes the entire realm of factors, utilities, activities, tools, elements, and even incentives and motivations that go into the outcome of a single product. It is the root from which the management could hope to draw the fruits, and the pruning from which better growth could be ensured .
The origins of system dynamics encompass the entire management hierarchy. It is a process which is as much relevant on the shop floor as it is at the highest management level. The theory of system dynamics is based on certain assumptions relevant to the creation and operation of the system that runs the enterprise.
The guiding principles for the management of the ecosystem are interlinked with those of the manufacturing units and global warming issues. Each of these is crucially linked to the other and their successful coordination is essential in order to curtail harmful greenhouse effects and preserve life and natural resources.
The modalities for coordinating multipurpose system dynamics are based on the observation and studies of several disciplines of both natural and manmade order. Ecosystems and ecological processes related to hydrology, hydrochemistry, hydrobiology, water bodies, thermodynamics, environmental geography, mathematics and statistics covering ecosystems and ecology, industrial statistics, waste and pollution management statistics and approaches to information systems and operations research are some of the important features that assume prominence in development of system dynamics modeling methodology.
It is necessary to ensure the components comprising each system evaluation does not overlap with different disciplines, or even if they do they do not present distorted but precise information in keeping with the identity of the factor or factors the component of the system is tracking. For instance, if there is a single chemical compound contaminating a water body then the component of the system tracking it should be the same for the source of the chemical compound, its course and its final destination. 
Advantage/disadvantage (limitation of the method)
System dynamics provides constant feedback on the basis of which decisions can be taken and corrective measures applied. Indeed, the utility and scope of the system dynamics rests on its ability to provide information for deciding on the subsequent course of action. Corporate policies and decisions through appropriate use of quantitative analysis and selection of right information could result in better chances of success.
One of the major problems with the system is that the