IEG 580 Systems Simulation

Dr. Lawrence Al-Fandi

Assistant Professor of Industrial Engineering

Lawrence.alfandi@aum.edu.kw

Dr. Lawrence Al-Fandi - IEG 580 - Fall 2016

IE 580
Systems Simulation
Fall 2016
Simulation: An Overview of Ch1 &Ch2
Dr. Lawrence Al-Fandi - IEG 580 - Fall 2016

Outline
Modeling and Models
Definition
Types of Models

Simulation Models
Components of Simulation Models
Event Scheduling

Dr. Lawrence Al-Fandi - IEG 580 - Fall 2016

Simulation: What is it?

Simulation is imitation of a real world

system or a process over time
We simulate all the time

Dr. Lawrence Al-Fandi - IEG 580 - Fall 2016

Simulation: What is it?

Simulation is a very broad term:

methods and applications to imitate or mimic real systems,

usually via computer
Applies in many fields and industries
Very popular and powerful method

Dr. Lawrence Al-Fandi - IEG 580 - Fall 2016

Systems
A system

consists of subsystems
interacts with its
environment

to achieve its objective(s)

Dr. Lawrence Al-Fandi - IEG 580 - Fall 2016

Systems

Computer simulation models systems

But not the previous one, at least not yet!

Dr. Lawrence Al-Fandi - IEG 580 - Fall 2016

Systems
Other examples include

Bank or other personal-service operation

Transportation/logistics/distribution operation
Freeway system
Business process (insurance office)
Criminal justice system
Chemical plant
Fast-food restaurant
Supermarket
Theme park
Emergency-response system

Dr. Lawrence Al-Fandi - IEG 580 - Fall 2016

Models
Model requires a set of assumptions
and approximations
Studying the model has advantages:

usually much easier, faster, cheaper, safer

Can try wide-ranging ideas with the model
Often, just building the model is instructive
Model validity is an issue

Dr. Lawrence Al-Fandi - IEG 580 - Fall 2016

Reasons for Modeling Systems

We model the systems
To Measure their performance
To Improve, and control their operation
To Design if they dont exists

Dr. Lawrence Al-Fandi - IEG 580 - Fall 2016

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Playing with the Real System

Good Sides:
You are looking at the right thing
You dont need to take this class

Bad Sides:
May be too difficult or costly
May be downright impossible
Cannot compress time
Dr. Lawrence Al-Fandi - IEG 580 - Fall 2016

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Types of Models
Physical (iconic) models
Tabletop material-handling models
Mock-ups of fast-food restaurants
Flight simulators

Dr. Lawrence Al-Fandi - IEG 580 - Fall 2016

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Types of Models
Logical (mathematical) models
Approximations and assumptions
Often represented via computer program
Exercise the program to try things

Dr. Lawrence Al-Fandi - IEG 580 - Fall 2016

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Logical Models
If model is simple enough, use traditional
mathematical analysis
Queueing theory
Differential equations
Linear programming, etc.

But complex systems can seldom be

validly represented by a simple analytic
model
Dr. Lawrence Al-Fandi - IEG 580 - Fall 2016

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Simulation Models
Computer simulation refers to methods for
studying a wide variety of models of systems
Numerically evaluate on a computer
Use software to imitate the systems operations
and characteristics, often over time

Dr. Lawrence Al-Fandi - IEG 580 - Fall 2016

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Dr. Lawrence Al-Fandi - IEG 580 - Fall 2016

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Popularity of Simulation
Most useful tools in bussiness life, 1978:
1. Statistical analysis
2. Forecasting
3. Systems Analysis
4. Information systems
5. Simulation

1979: Survey 137 large firms, which methods used?

1. Statistical analysis (93% used it)
2. Simulation (84%)
3. Followed by LP, PERT/CPM, inventory theory, NLP,
Dr. Lawrence Al-Fandi - IEG 580 - Fall 2016

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Popularity of Simulation
1980: IIE O.R. division members
First in utility and interest simulation
First in familiarity LP
(simulation was second)

1983, 1989, 1993:

1. Statistical analysis
2. Simulation
Dr. Lawrence Al-Fandi - IEG 580 - Fall 2016

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Pros and Cones

Pros:
Allows modeling complex systems
Allows uncertainty nonstationarity in modeling
Cones:
Dont get exact answers, only approximations,
estimates
Get random output (RIRO) from stochastic
simulations
Dr. Lawrence Al-Fandi - IEG 580 - Fall 2016

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Types of Simulations
Static vs. Dynamic
Does time have a role in the model?

Continuous-change vs. Discrete-change

Can the state change continuously or only at
discrete points in time?

Deterministic vs. Stochastic

Is everything for sure or is there uncertainty?

Most operational models:

Dynamic, Discrete-change, Stochastic
Dr. Lawrence Al-Fandi - IEG 580 - Fall 2016

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More on Discrete-change
In discrete-change systems state of the system
changes onlywhen something happens:

Torna

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Arena
Hierarchical structure
Multiple levels of
modeling
Can mix different
modeling levels together
in the same model
Often, start high then go
lower as needed
Get ease-of-use advantage of
simulators without sacrificing
modeling flexibility
Dr. Lawrence Al-Fandi - IEG 580 - Fall 2016

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