Example of a system dynamics work diagram showing the basic construction elements

The work at hand is based upon explorative research. Accordingly, the quantification approach is developed by analyzing literature and modeling cause-and-effect relationships between SCIs and their value drivers. The approach was improved stepwise by testing it in practice in the context of a research project conducted at the Chair of Logistics Management of the University of St,Gallen. 

System dynamics faces the trade-off between the desired level of detail and the degree of utility. On the one side, endeavors are aiming at a high level of detail to model the real world as accurately as possible. On the other hand, a high level of detail raises complexity, which in turn constrains the understanding and utility of the model. This problem of contrary target settings is called the Bonini paradox (Vennix, 1980 89). 

Additionally, system dynamics techniques are suitable for applications in theory and practice due to their intuitive set-up and the user-friendly software available (Schwaninger Hamaim, 2005 4). 

3 Methodological fundamentals of the research on the value determination of SCIs 

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Figure 3-6 Example of a system dynamics work diagram showing the basic construction elements (PowerSim, 2009 30)...

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