Scribd
Upload
7 views2 pages

simulation 2

Simulation is a method for problem-solving that involves creating a model to observe system behavior and gather data, serving as a cost-effective alternative to direct experimentation. It is particularly useful in complex scenarios where analytical techniques are inadequate, providing insights into issues like queuing systems and inventory control. The simulation model consists of various types of variables, including input, parameters, status, and output variables, which help in understanding and forecasting business operations.

Uploaded by

jalecia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
7 views2 pages

simulation 2

Simulation is a method for problem-solving that involves creating a model to observe system behavior and gather data, serving as a cost-effective alternative to direct experimentation. It is particularly useful in complex scenarios where analytical techniques are inadequate, providing insights into issues like queuing systems and inventory control. The simulation model consists of various types of variables, including input, parameters, status, and output variables, which help in understanding and forecasting business operations.

Uploaded by

jalecia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

SIMULATION

Meaning

Is a method of approach to problems which involves building a model of the system to


be investigated observing the behavior of the system by gathering useful data
about the model .It is therefore a “Try and see what happens” method which is
cheaper than direct experimentation using the real system. In business, the
process of experimenting with a model usually consists of inserting different input
values and observing the resulting values.

Why use simulation

 Used where analytical techniques are not available or would be very complex. It is
used in most queuing systems, inventory control problems, production planning
problems, corporate planning etc.
 Simulation often provides an insight into a problem which would be unobtainable
by other means.

Variables in a simulation model

a) Input variables – these are grouped further into;


i) Controlled input variables
These are variables which can be controlled by management like reorder
level or reorder quantity in a stock control system.
ii) Non controlled input variables
They are variables not controlled by management like the demand of goods
in a stock control system.
b) Parameters
These are inputs variables which have a constant value and are used to specify
the relationship between other variables.

c) Status variables
These are general circumstances of s system which may affect the output such as
times or seasons. For instance demand in a queuing system like supermarket is
greatly influenced by the season of the year.

1. Using models of real objects, events or circumstances to study their behavior


d) Output variables
These are the results of simulation. They arise from the calculations and tests
performed in the models using input variables, parameters and status variables.
The following table summarizes the types of simulations variables.

VARIABLES USED IN SIMULATION

Examples
INPUT VARIABLES

Controlled Variables  Reorder

 Reorder quantity

Non controlled Examples


variables  Demand

Examples

 Cost of stock out


PARAMETERS
Loss of Loss of
good will customers

STATUS VARIABLES

OUTPUT VARIABLES

Business models

A model is any representation (physical or abstract) of a real thing, event or


circumstances. In business planning, abstract or symbolic models are used and
represent reality in numeric, algebraic or graphical form. Another definition for a model is
an intelligent representation of reality developed to help forecast what might happen
when an existing operation is enlarged or has extra demands made on it.

1. Using models of real objects, events or circumstances to study their behavior

You might also like