SIMULATION MODELS IN

INDUSTRIAL ENGINEERING
Lesson 1
Introduction to Simulation

Tran Van Ly
Industrial Engineering & Management
International University
Email: [email protected] 1
Room: A2-504
 Course description
• Modeling and analysis of industrial and
service systems
• Discrete event system simulation
• Simulation model building using ARENA
• Statistical aspects of simulation.

2
 Textbook
• Banks, J., Carson, J. S., Nelson, B. L., and Nicol,
D. M., Discrete-Event System Simulation, 4th
edition, Prentice-Hall, 2005.
• Kelton, W. D., Sadowski, R. P., and Sturrock, D.
T., Simulation with Arena, McGraw-Hill, New
York (fourth edition), 2006.

3
 Content
No. Topic Learning materials
1 Introduction to Discrete-Event system Jerry Banks’ chapter 1
simulation
2 Simulation Examples in a spreadsheet Jerry Banks’ chapter 2
3 General Principles Jerry Banks’ chapter 3
4 Introduction to Arena Kelton’s
6 Statistical Models in Simulation Jerry Banks’ chapter 5
7 Random-number generation Jerry Banks’ chapter 7

8 Random-variate generation Jerry Banks’ chapter 8

9 Input modeling Jerry Banks’ chapter 9
10 Verification and Validation of simulation Jerry Banks’ chapter 10
models
11 Output analysis and statistical issues Jerry Banks’ chapter
11,12

4
 Assessment
• Midterm (Theory & Lab): 30%
• Final (Theory & Lab): 40%
• Simulation Project: 20%
• Assignment: 10%

5
 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 nor
interfere directly.
– Hence, numerical, computer-based simulation can be used to imitate the
system behavior.
6
 to

An actual or envisioned system A useful simulation model of that system

Figure 1.1. A Traffic simulation model

7
 When to use Simulation?
• Simulation can be used for the purposes of:
– Study internal interactions of a complex system.
– Observe the effect of system alterations on model behavior.
– Gain knowledge about the system through design of simulation model.
– 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.
– Show animation.
– Modeling complex system.

8
 When Not to Use Simulation?
• Simulation should not be used when:
– Problem can be solved by common sense.
– 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.

9
 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.  Simulation is not “smart”.
• 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.

10
 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).

11
 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.
– Healthcare.
– Computer and communication systems.
12
 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.

13
 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.

14
 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

15
 Examples of Systems & their components
System Entities Attributes Activities Events State variables
Banking Customers Account Making Arrival, Number of busy
balance deposits departure tellers, number of
customers waiting
Train Riders Origin, Traveling Arrival at Number of riders
destination station, waiting, number in
arrival at the transit
destination

Production Machines Speed, Welding;  Breakdown Status of machines

capacity, stamping (busy, idle , down)
breakdown
rate

Inventory Warehouse  Capacity Withdrawing Demand Levels of inventory,

backlogged demands

16
 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

19
 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.

20
 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.

21
 Methods to study system
System

Experiment with Experiment with system

modeling
real system

Physical Model Mathematical Model

Analytical Solutions Simulation Solutions

Figure 1.2. Methods to study a system

22
 Discrete Event System Simulation
• This course 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.

23
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.

24 24
 Homework
• In the current WSC Proceedings available at
https://informs-sim.org/, read an article on
the application of simulation related to your
major area of study or interest, and prepare a
report on how the author accomplishes the
steps in a simulation study

(Submit to Blackboard)

25