Abstract

This chapter discusses the applications of simulation. The considerable usage of simulation covers a wide range of areas such as the planning and operation of manufacturing plants, mines, health care systems, urban systems and applications such as man power planning, engineering design, financial processes, economic systems, ecological systems, job shop scheduling, flood control, and psychological testing. In different surveys of quantitative tools utilized in business, simulation was found to be applied more than most other methods including queueing theory, dynamic programming, and linear programming. The widespread usage of simulation is its flexibility. The chapter also discusses some issues in simulation applications. Constructing a simulation model of a real system poses many questions to the modeler, such as the choice of the structure of time flow, the degree of details included in the model, validation, the quantification of input processes and data collection problems, and acceptance by management. One of the difficult steps in building a simulation model is the quantification of input processes, especially when data are not available. In such cases, the modeler may have to resort to specifying subjective probability distribution functions.

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