Corporate simulation models - a review and reappraisal

摘要

This paper examines the potential and the practice of simulation modeling for corporate financial planning. The contributions of formal models to the planning process are reviewed and appropriate design features are proposed. Comparative analysis of simulation and optimization applications in corporate planning points to substantial functional complementarity and opportunities for combined use. An actual planning system involving both simulation and optimization techniques is described to illustrate the feasibility and potential of the hybrid modeling approach.