Computer Simulation For Business Lecture 1
Computer Simulation For Business Lecture 1
HANNAN MIA
[email protected]
29/03/2014
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Learning outcomes and Reading
• The learning outcomes of this lecture are the following
– Introduce the importance of simulation modelling
and its advantages.
– Present the basics of simulation modelling
– Present the basic elements of simulation models.
• Reading
– Pidd M (2004) “Computer Simulation in
Management Science” 5th edition, John Wiley and
sons, Chichester. Chapters 1, 2.
– Robinson S (2004) “Simulation: The practice of
model development and use” John Wiley and sons,
Chichester. Chapter 1
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What is Simulation?
• The word “simulate” means “create a
likeliness”.
• Therefore, “simulation” means the creation
of some kind of “models” which replicate,
to some extent, the functioning of real
world systems.
• These systems may be biological,
physical, natural, human, or
organisational.
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Example
• Assume that you are managing an airport
terminal. From your observations, you noticed
that many passengers get late to airplanes
causing delays to flights.
You would like to know the following
-What are the sources of passengers’ delay.
-How many check in desks should be open
during the different periods of the day. Where
should these desks located.
-Where should the security checks carried out.
How many security check points you would
need.
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Example (Continued)
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Advantages of Simulation (1)
• Cost: Direct experimentation in the real world is
generally very expensive. An airport manager will not
build a new floor in a terminal to see how this will impact
passengers’ delay.
• Time: Direct experimentation is time consuming. It
takes years to build a new motorway to assess whether
it reduces road congestion or not.
• Replication: Events are not controllable in the real
world. Some events happen only once or it takes a long
period of time for an event to occur again. To evaluate
the impact of a Tsunami wave on the fish population, you
have to wait a long period of time to have the opportunity
to do it (and hope it will not cause damage)
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Advantages of Simulation (2)
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Time Handling