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Simulation

Simulation is a flexible methodology that allows analysis of present or proposed systems through experiments on a model rather than the real system. Simulations are used in a wide range of applications including oil drilling, transportation planning, supply chain management, military operations, and financial decision making. A simulation model represents key variables and relationships mathematically to simulate the system's behavior over many trials faster and safer than real experiments. The results provide insight into how changes might impact the actual system.

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54 views

Simulation

Simulation is a flexible methodology that allows analysis of present or proposed systems through experiments on a model rather than the real system. Simulations are used in a wide range of applications including oil drilling, transportation planning, supply chain management, military operations, and financial decision making. A simulation model represents key variables and relationships mathematically to simulate the system's behavior over many trials faster and safer than real experiments. The results provide insight into how changes might impact the actual system.

Uploaded by

jodes_jm
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Simulation Simulation is a flexible methodology we can use to analyze the behaviour of a present or proposed business activity, new product,

manufacturing line or plant expansion, and so on. By performing simulations and analyzing the results, we can gain an understanding of how a present system operates, and what would happen if we changed it -- or we can estimate how a proposed new system would behave. Often -- but not always -- a simulation deals with uncertainty, in the system itself, or in the world around it. Simulation Applications Simulation is one of the most widely used quantitative methods -- because it is so flexible and can yield so many useful results. Here's just a sample of the applications where simulation is used:

Choosing drilling projects for oil and natural gas Evaluating environmental impacts of a new highway or industrial plant Setting stock levels to meet fluctuating demand at retail stores Forecasting sales and production requirements for a new drug Planning aircraft sorties and ship movements in the military Planning for retirement, given expenses and investment performance Deciding on reservations and overbooking policies for an airline Selecting projects with uncertain payoffs in capital budgeting

Simulation Models In a simulation, we perform experiments on a model of the real system, rather than the real system itself. We do this because it is faster, cheaper, or safer to perform experiments on the model. While simulations can be performed using physical models -- such as a scale model of an airplane -- our focus here is on simulations carried out on a computer. Such simulations use a mathematical model of the real system. In such a model we use variables to represent key numerical measures of the inputs and outputs of the system, and we use formulas, programming statements, or other means to express mathematical relationships between the inputs and outputs. Each experiment is called a trial, and a simulation run includes many -- often thousands of -- such trials. When the simulation deals with uncertainty, the model will include uncertain variables -- whose values are not under our control -- as well as decision variables or parameters that we can control.

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