INFORMS Teaching of Management Science Workshop
INFORMS Teaching of Management Science Workshop
Management Science
Workshop
Teaching Simulation
Andy Seila University of
Georgia
About Me
11/12/15
About You
Business
Industrial Engineering
OR
Math
Other
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Undergrad
MBA
MS or MA or specialized masters
PhD
Other
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Full Semester
Several weeks
One or two weeks
One or two classes
Other
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What is simulation?
Work in a group of 2 or 3, and write
down a definition or description of
simulation.
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What is simulation?
Simulation: A sampling experiment
done on a (digital) computer.
Has a (stochastic) model.
Requires data analysis.
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Analysis of an Office
Building Project
Goal: sensitivity analysis
What do we want the students to
learn from this example?
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Primary goal
Literacy
Build simple models
Develop modeling and problem
solving skills
Learn simulation methodology
Other
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Software used
Spreadsheet
With @RISK or Crystal Ball?
With some other add-in?
Just the spreadsheet?
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Poptools
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A Stochastic Model
Parameters
Decisions
MODEL
Outputs
Random
Variates
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An Example EOQ
Model
This example shows all parts of the modeling,
analysis and decision making processes.
Cost = Ce*(supply demand) if supply > demand
= Cs*(demand supply) if supply <=
demand
Demand ~ Erlang(4, 2)
What is mean cost, given the order quantity?
Model has a solution: F(Q)=Cs/(Ce+Cs)
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Simulation: Topics
Simulation
How to sample the behavior of the system and do
replications.
Decision making
Using the estimates to choose decisions.
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Simulation - Topics
Other topics:
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Another Example
Queueing Model
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Discussion Questions
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Discussion Questions
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Active Learning
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Thank you!
[email protected]
www.terry.uga.edu/~seila/tms2006/
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