Author(s)

R. M. Alqirem

Abstract

Simulation is an important tool in understanding and designing physical systems, engineering systems and social systems. Because of its importance and broad range, it has been the subject of numerous research studies and books. Simulation is about techniques for using computers to imitate (simulate) the operations of various kinds of real world complex systems. It has been an accepted tool for the improvement of decision making through learning how to deal with the complexity of the real world. The complexity slows the learning loop and reduces the learning gained on each cycle. This paper illustrates the importance of system thinking in enhancing the simulation process and providing the ability to see the world as a complex system, where \“you cannot just do one thing” and that \“everything is connected to everything else”. It is a holistic worldview that enables people to act in consonance with the best interests of the system as a whole and thus enhance the learning loop through various system thinking tools. The case study in this paper illustrated the use of a system dynamics simulator to allow the financial manager in a firm to test different account receivables scenarios and the strategies to control these accounts. We found that this simulator has helped the manager to get a deeper insight into the effect of their decisions and the different interrelated variables that involve with setting a strategy to control account receivables. Keywords: systems thinking, complex systems, systems dynamics, simulation. 1 Introduction As the world becomes more complex, many people and organisations find themselves bombarded with lots of problems to solve, less time to solve them, and very few chances to learn from their mistakes. Managers will need to deal with complexity and with these changes. Also they need to develop their new

Keywords

systems thinking, complex systems, systems dynamics, simulation