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Outline:
Definition of Simulation Advantages Disadvantages Process Applications Types

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Simulation- Meaning:
Simulation is a process of designing a model of real system.
conducting experiments with this model. purpose of understanding the behavior for the operation of the system.

to assume the mere appearance of ,without the reality

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DEFINITION:
Simulation is the process of designing a model of a real system and conducting experiments with this model for the purpose of either understanding the behavior of the system and/or evaluating various strategies for the operation of the system.
E.G.:
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SIMULATION MODEL

REAL MODEL

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Advantages to Simulation:

Simulations greatest strength Is its ability to answer what if questions...

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Estimates the performance of existing system. Maintain much better control. Allows to study a system with long time frame. Useful for sensitivity analyses. Used as pre-test to try new policies and decision rule. Allows us to control time.
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Simulation is not without its drawbacks...

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Disadvantages:
Some simulation may take longer period of time to develop. Produce different result in repeated run. Does not generate optimal solution. User has to provide all constraint. Simulation results are sometimes hard to interpret. Simulation analysis can be time consuming and expensive.
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P R O C E S S

FORMULATE THE PROBLEM AND PLAN THE STUDY COLLECT THE DATA AND DEVELOP THE SIMULATION MODEL

CHECK THE ACCURACY OF THE SIMULATION MODEL

SELECT THE SOFTWARE AND CONSTRUCT A COMPUTER PROGRAM TEST THE VALIDITY OF THE SIMULATION MODEL PLAN THE SIMULATION TO BE PERFORMED

CONDUCT THE SIMULATION AND ANALYSE THE RESULTS

PRESENT RECOMMENDATION TO MANAGEMENT

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APPLICATIONS OF SIMULATION:
1>NEW PRODUCT DEVELOPMENT:
DETERMINE THAT NEW PRODUCT IS PROFITABLE? MODEL WILL BE DEVELOPED. POSSIBLE VALUES ARE GENERATED USING SIMULATION MODEL.

2>AIRLINE RESERVATION:
DETERMINE THE NUMBER OF RESERVATION AN AIRLINE SHOULD ACCEPT FOR A PARTICULAR FLIGHT.

SIMULATION MODEL IS DEVELOPED BASED ON NUMBER OF PASSENGER AND SHOW UP RESULTING PROFIT.
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3>DESIGN AND OPERATION OF MANUFACTURING SYSTEMS:

IN SCHEDULING JOBS IF SOME COMPLICATIONS OCCURS SUCH AS BREAKDOWNS,DEFECTIVE ITEMS ETC. SUCH COMPLICATIONS ARE NO PROBLEM FOR SIMULATION.

4>DESIGN AND OPERATION OF DISTRIBUTING SYSTEMS:

UNCERTANTIES MAY ARISE IN TRANSPORTATION OF GOODS FROM MANUFACTURER TO CONSUMERS,BY GENERATING RANDOM RELEVANT PROBABILITY DISTRIBUTION,SIMULATION CAN DEAL WITH THESE UNCERTANITIES.
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5>FINANCIAL RISK ANALYSIS:

E.G.:EVALUATION OF PROPOSED CAPITAL INVESTMENT WITH UNCERTAIN FUTURE CASH FLOWS,SIMULATION CAN GENERATE THOUSANDS OF ALTERNATIVE SOLUTION FOR HOW THE INVESTMENT WILL TURNOUT.

6>HEALTH CARE APPLICATIONS:

EVALUATION OF RISKY INVESTMENT AND ANALYSIS OF FUTURE UNCERTAINTIES.
UNCERTAINTIES SUCH AS EVOLUTION OF HUMAN DISEASES ARE ALSO DETERMINED USING SIMULATION.
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TYPES OF SIMULATION:
1>PROBABILISTIC SIMULATION:
IN THIS ONE OR MORE INDEPENDENT VARIABLE FOLLOW A CERTAIN PROBABILITY DISTRIBUTION.IT HAS TWO SUBCATEGORIES 1)DISCRETE DISTRIBUTION:LIMITED EVENTS 2)CONTINUOUS DISTRIBUTION:UNLIMITED EVENTS

2>TIME DEPENDENT AND TIME INDEPENDENT SIMULATION:

WHEN IT IS NOT IMPORTANT TO KNOW WHEN EVENT OCCURRED IS TIME INDEPENDENT AND WHEN NECESSARY TO KNOW PRECISE TIME-- TIME DEPENDENT
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3>VISUAL SIMULATION:
IT IS ALSO KNOWN AS VISUAL INTERACTIVE SIMULATION(V.I.S).IT USES COMPUTER GRAPHIC DISPLAY TO PRESENT THE IMPACT OF VARIOUS MANAGERIAL DECISION.

4>BUSINESS GAMES:
THESE ARE COMPETITIVE DECISION MAKING INVOLVING PROBABILISTIC SIMULATION.

5>LARGE SYSTEM SIMULATION:

SIMULATION MAY BE APPLIED IN CORPORATE PLANNING,ESPECIALLY THE FINANCIAL ASPECTS(BOTH SHORT AND LONG TERM).
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And the list goes on

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