The flow arrow is used to specify a term contributing to the rate of change of a compartment. If the flow arrow enters a compartment, it specifies a positive contribution to the rate of change of that compartment. If it leaves the compartment, it specifies a negative contribution to the rate of change.
The information on the flows entering and leaving each compartment is used to calculate the net rate of change of the compartment. The net rate of change is the sum of all the inflow values minus the sum of all the outflow values. The net rate of change is in turn used to calculate the change in the value of the compartment.
In most respects, a flow is treated just like a variable. You can use the full range of the equation language when you enter an equation for the flow, just as you can do for a variable. You can have influence arrows going from it to other parts of the model, again just like a variable. The two differences are that: