Chapter 1

Introduction to Simulation

Banks, Carson, Nelson & Nicol

Discrete-Event System Simulation
What is a Simulation?
 A simulation: imitation of the operation of a real-world
process or system over time:
 Involves generation of an artificial history of a system.
 Observes that history and draws inferences about system
characteristics.
 Can be used as:
 Analysis tool for predicting the effect of changes to existing
systems.
 Design tool to predict performance of new systems.
 Many real-world systems are very complex that cannot
be solved mathematically.
 Hence, numerical, computer-based simulation can be used to
imitate the system behavior.

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When to use Simulation?
 Simulation can be used for the purposes of:
 Study and experiment with internal interactions of a complex
system.
 Observe the effect of system alterations on model behavior.
 Use as a pedagogical device to reinforce analytic solution
methodologies, also to verify analytic solutions.
 Experiment with new designs or policies before implementation.
 Determine machine requirements through simulating different
capabilities.
 For training and learning.
 Model complex system.

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When Not to Use Simulation?
 Simulation should not be used when:
 Problem can be solved analytically.
 If it is easier to perform direct experiments.
 If the costs exceed the savings.
 If the resources or time to perform simulation studies are not
available.
 If no data, not even estimates, is available.
 If there is not enough time or personnel to verify/validate the
model.
 If managers have unreasonable expectations: overestimate the
power of simulation.
 If system behavior is too complex or cannot be defined.

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Advantages and Disadvantages of Simulation

 Simulation is frequently used in problem solving.

 It mimics what happens in a real system.
 It is possible to develop a simulation model of a system without
dubious assumptions of mathematically solvable models.
 In contrast to optimization models, simulation models are “run”
rather than solved.
 Advantages:
 Explore new policies or procedures without disrupting ongoing
operations of the real system.
 Test new hardware or physical systems without committing to
acquisition.
 Test hypotheses about how or why certain phenomena occur.
 Study speed-up or slow-down of the phenomena under
investigation.

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Advantages and Disadvantages of Simulation

 Advantages (cont.):
 Study interactions of variables, and their importance to system
performance.
 Perform bottleneck analysis.
 Understand how the system operates.
 Test “what if” questions.
 Disadvantages:
 Model building requires special training.
 Simulation results can be difficult to interpret.
 Simulation modeling and analysis can be time consuming and
expensive.
 Simulation is used in some cases when an analytical solution is
possible (or even preferable).

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Areas of Application
 The applications of simulation are vast.
 The Winter Simulation Conference: an excellent way to
learn more about the latest in simulation applications and
theory.
 Some areas of applications:
 Manufacturing
 Construction engineering and project management.
 Military.
 Logistics, supply chain, and distribution.
 Transportation modes and traffic.
 Business process simulation.
 Computer and communication systems.

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Areas of Application
 Some general trends:
 Risk analysis, e.g. pricing, insurance.
 Call-center analysis.
 Large-scale systems, e.g., internet backbone, wireless networks.
 Automated material handling systems as test beds for the
development and functional testing of control-system software.

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Systems and System Environment
 A system is a group of objects joined together in some
regular interaction or interdependence to accomplish
some purpose.
 e.g., a production system: machines, component parts & workers
operate jointly along an assembly line to produce vehicle.
 Affected by changes occurring outside the system.
 System environment: “outside the system”, defining the
boundary between system and it environment is
important.

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Components of a System
 An entity: an object of interest in the system, e.g., computing
jobs in queue.
 An attribute: a property of an entity, e.g., priority class, or
vector of resource requirements.
 An activity: represents a time period of a specified length, e.g.
job receiving service.
 The state of a system: collection of variables necessary to
describe the system at any time, relative to the objectives of
the study, e.g. the number of busy servers, the number of jobs
in queue.
 An event: an instantaneous occurrence that may change the
system state, can be endogenous or exogenous, e.g. a new
job arrival, or service time completion

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Discrete and Continuous Systems
 Discrete system: in which state variable(s) change only at a
discrete set of points in time.
 e.g., the number of jobs in queue changes when a new job arrives
or when service is completed for another
 Continuous system: in which state variable(s) change
continuously over time.
 e.g., the head of water behind a dam.

Discrete System Continuous System

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Model of a System
 Studies of systems are often accomplished with a model
of a system.
 A model: a representation of a system for the purpose of
studying the system.
 A simplification of the system.
 Should be sufficiently detailed to permit valid conclusions to be
drawn about the real system.
 Should contain only the components that are relevant to the
study.

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Types of Models
 Two types of models: mathematical or physical.
 Mathematical model: uses symbolic notation and
mathematical equations to represent a system.
 Simulation is a type of mathematical model.
 Simulation models:
 Static or dynamic.
 Deterministic or stochastic.
 Discrete or continuous.
 Our focus: discrete, dynamic, and stochastic models.

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Discrete Event System Simulation
 This book is about discrete-event system simulation.
 Simulation models are analyzed by numerical methods
rather than by analytical methods.
 Analytical methods: deductive reasoning of mathematics to
“solve” the model.
 Numerical methods: computational procedures to “solve”
mathematical models.

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Steps in a Simulation Study

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Steps in a Simulation Study
 Four phases:
 Problem formulation, and setting objective and overall design
(step 1 to 2).
 Modeling building and data collection (step 3 to 7)
 Running of the model (step 8 to 10).
 Implementation (step 11 to 12).
 An iterative process.

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