Simulation is a powerful technique for solving a wide variety of problems to simulate the behaviour of the system. Simulation is a numerical technique for experiments on a digital computer, which involves logical and mathematical relationships that interact to describe the behaviour and structure of a complex real-world system over extended periods of time.
Simulation analysis is a natural and logical extension to the analytical and mathematical model. it is evident that there are many situations that cannot be represented mathematically because of the stochastic nature of the problem, the complexity of the problem formulation, or the interactions needed to adequately describe the problem under study.
Simulation Analysis :
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Simulation makes it possible to study and experiment with internal interactions of a given system whether it be a firm, an industry, an economy or some subsystem of one of them. |
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A detailed observation of the system being simulated may lead to a better understanding of the system and suggestions for improving it. |
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Simulation of complex systems can yield valuable information on which variables are more important to the others in the system and how these variables interact. |
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Simulation can serve as a "Pre-Service Test" to try out the new policies and decision rules for operating a system. |
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Simulation analysis can be performed to verify analytical solutions. |
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Informational, organizational and environment changed can be simulated and the effect of these alterations on the model's behaviour can be observed. |
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Simulation can be used as
a pedagogical device to reinforce analytic solution methodologies
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