A cache is said to be dynamic if it changes with the changes happening in the lookup table. The static cache is synchronized with the lookup table.
You can choose from the lookup transformation properties to make the cache dynamic. Lookup cache is created as soon as first record enters the lookup transformation. Integration service keeps on updating the cache while it is processing the data. The Integration service marks the record as insert for new row inserted in dynamic cache. For the record that is updated, it marks the record as update in the cache. For every record that doesn't change, the Integration service marks it as unchanged.
You use the dynamic cache while you process the slowly changing dimension tables. For every ...