Research on traditional industry transformation mechanism based on system dynamic model

On the basic of comprehensive and systematic study on the mechanism of the traditional manufacturing industry transformation, this paper is to establish the systems dynamics model of the traditional manufacturing industry transformation According to different modes of the transformation, it designs corresponding plan. It applies the software—Vensim to do the simulation analysis by use of the actual economic data of Baoshan. Then it systematically analyzes and evaluates the relative index after the simulations, so that we can get the preferred plan and suggestions.