Management Decisions Based On System Dynamics Modeling Study

New requirements to management decision-making of enterprises arise when market circumstances diversify rapidly. System Dynamics is a subject based on feedback control theory that analyzes qualitative and studies quantitatively the dynamic behavior of the development of the large complex nonlinear system in virtue of computer simulation technology. Based on the researches of the relevant theories and technologies, the method of System Dynamics is applied on manufacturing enterprise.From the viewpoint of system, such the basic theories of the modeling method as System Dynamics, Learning Organization and System Thinking are studied on the basis of the analysis of the status quo of management decision-making, as well as relevant model building blocks, modeling methods and modeling steps. Taking advantage of modeling platform STELLA/ithink, some enterprise management decision-making modeling infrastructures are built based on Anhui Jianghuai Automotive Co., Ltd., which include inventory controlling, manufacturing, pricing, shop controlling and etc. Finally, based on the qualitative analysis of the strategy of mark down sale in auto industry the model of the pricing strategy in auto industry is developed, which is based on Anhui Jianghuai Automotive Co., Ltd. The effects of the strategy of mark down sale are simulated and analyzed quantitatively. To a certain extent, the simulation results shows that the model can illustrate the dynamic attributes of enterprise systems after the strategy of mark down sale is executed, and it is of determinate reference value.