School of Industrial Engineering & Management - International University – VNU-HCM

Chapter 1

Introduction to Simulation

Discrete-Event System Simulation

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What is a Simulation?
● A simulation: imitation of the operation of a real-world process
or system over time

● 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.
-> Use MODELS

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School of Industrial Engineering & Management - International University – VNU-HCM

Discrete-Event System Simulation

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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.
– Healthcare.
– 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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 to

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

Figure 1.1. A Traffic simulation model

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Transportation Simulation Models 9
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.

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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.

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Advantages and Disadvantages of Simulation
● Simulation is frequently used in problem solving.

● 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.

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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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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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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
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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 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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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.

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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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Example: Simulation Study
- a convenience store case -
 1. Problems & Objectives

● New convenience store appears nearby, need to increase

competitiveness.
● Want to see what we can improve via simulation: waiting time, time
in store..
● Want to make some changes & “predict” the results before
implementation
2. Model conceptualization
2. Model conceptualization Shopping area

Buy
nothing Aisle 1

Customers Buy
arrive something Aisle 2

Buy many Aisle 3

thing

Checkout area

Yes
Checkout
lane 1
No No No
Eating at Custome Go to
the r buys another
store? nothing? aisle?

Checkout
lane 2 Yes
Yes

Yes
Enough Customers
Eating
chairs? leave

No
3. Data collection & Input modelling

Random
Variable &
● ... Probability
Distribution
● ...
● ….
● ...
● ….
● ….
 4. Computerized model Example from ARENA

Buying

Checking
out

Eating
4. Computerized model (with animation)
5. Verification & Validation

- Does the computerized model well reflect the conceptual model?

- Does the computerized model well reflect the real store ?

5 = 6 ???

→ YES → Ready to use the simulation model!

6. Output analysis

Queue Resource Maximum Comment

Lane 1 3
Number waiting Logic, seems to be
Lane 2 3 high vs. other
Waiting time Lane 1 2.4 convenience stores
(benchmark)
(minutes) Lane 2 2.2

Stay to eat or leave after checking out

Quantity % Comment
Look quite low!
Stay 123 32
Enable customers to stay and buy
Leave 154 68 more
7. Experimentation
❑ Checkout area

• Option 1: Add 1 more checkout lane

• Option 2: Adjust the working schedule

❑ Self-service area: Increase seating capacity

 Recap

★ What is simulation?
★ Why is simulation?
★ How to study a system via simulation?