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The "if then else" function can be used in System Dynamics modeling in AnyLogic software by:

1. Building a model with stocks, flows, and other variables and parameters.
2. Defining the conditions to be evaluated in the if-then-else statement as variables in the model.
3. Creating a new AnyLogic function block in the model workspace.
4. Setting the input variables for the function block to the variables defining the conditions to be evaluated.
5. Entering the if-then-else statement using a conditional statement such as "if (condition) then (value1) else (value2)".
6. Setting the output of the function block to the value computed by the if-then-else statement.
7. Using the output of the function block as an input to other variables, stocks, or flows in the model.

For example, in a model of a manufacturing process, the "if then else" statement can be used to determine the number of workers needed based on the production level. If the production level is below a certain threshold, then only one worker is needed, otherwise, more workers are added based on the level of production. The if-then-else statement can be implemented in an AnyLogic function block as follows:

if (productionLevel < 100) then 1 else (productionLevel/50)

This statement will return the value of 1 if the production level is below 100, and otherwise, it will return the production level divided by 50, which determines the number of additional workers needed. This output can then be used as an input to other parts of the model.