Using Simulation for Business Decision Analysis

摘要

The advances in simulation and simulation software have been a great asset for many firms of all sizes. As we have discovered in our research, simulation is being used as a powerful decision support tool by many mangers. In fact, a popular definition of simulation is "the process of designing a model of a real system and conducting experiments with this model for the purpose of understanding the behavior of the system and/or evaluating various strategies for the operation of the system." The latter portion of the quote, "evaluating various strategies for the operation of the system" is the focus of our paper. We discuss the use of simulation in two areas: one for a small firm the other for a complex inventory problem.