Assignment

On
Simulation

Submitted To:
Dr. Md. Abdul Hannan Mia
Professor,
Dept of MIS,
University of Dhaka

Submitted By:
Hamida Akhtar
Sumon Choudhuy
Md. Milton Mia

ID-01
ID-68
ID-69

Date: 17/02/15

Table of Contents
Question no. 1: what do you mean by simulation?..........................................1
0

Question no 2: what are the advantages and disadvantages of simulation?...3

Question no 3: What are the types of simulation?...........................................5
Question no 4. Describe Business Application of Simulation..........................6
Question no 5: what is the next event technique?..........................................7
Question no 6. Describe the importance of next event technique in business.
.........................................................................................................................8
Question no 7. What are the characteristics of simulation?............................9
Question no 8. Why is simulation model better than mathematical modeling?
.......................................................................................................................10
References.....................................................................................................12

Question no. 1: what do you mean by simulation?

1

A Simulation is the imitation of the operation of real-world Process or system over time. The
behavior of a system that evolves over time is studied by developing a simulation model
(Introduction of simulation, 2015).
Simulation is a model of a complex system and the experimental manipulation of the model to
observe the results. Systems that are best suited to being simulated are dynamic, interactive,
and complicated (Computer Science Illuminated, 2015).
As simulation is a complex model so the definition of a model can be defined such as a
representation of a system that allows for investigation of the properties of the system and, in
some cases, prediction of future outcomes. Models are often used in quantitative analysis and
technical analysis, and sometimes also used in fundamental analysis (InvestorWords, 2015).
Simulation is a model or representative example of something. When you create a computer
program that is intended to model flying a plane, this is an example of a simulation. It the
duplicating or reproducing of certain characteristics or conditions, as of a system or physical
process, by the use of a model or representation, for study, training, etc. (Your Dictionary, 2015).
It is the attempt to represent a real-life system with a model to determine how a change in one or
more variables affects the rest of the system, also called what-if analysis. Simulation will not
provide optimization except by trial and error. It will provide comparisons of alternative systems
or how a particular system works under specified conditions. (all Business, 2015).
Simulation is the imitation of the operation of a real-world process or system over time. The act
of simulating something first requires that a model be developed; this model represents the key
characteristics or behaviors/functions of the selected physical or abstract system or process. The
model represents the system itself, whereas the simulation represents the operation of the system
over time (Wikipedia, 2015).
Simulation is the imitation of the operation of a real world process or system over time
(Slideshare, 2015).
Brief explanation:
2

The behavior of a system as it evolves over time is studied by developing a simulation

model

This model takes the form of a set of assumptions concerning the operation of the system
The assumptions are expressed in
o Mathematical relationships
o Logical relationship
o Symbolic relationship
Between the entities of the system.

Simulation lets you explore an electronic model of the project you manage - whether the project
is a factory, or a hospital, or an administrative center, whatever. The type of simulation it
provides is time-based, and takes into account all the resources and constraints involved, and the
way all these things interact with each other as time passes. Simulation is the process of building
and using a time based visual model that emulates every significant step that occurs in a process
and every significant interaction between resources in a process so as to gain insight about the
impact of potential decisions on that process. The simulation shows you visually what will
happen in the process if you make changes to it and it records performance measures of your
system under different scenarios (SIMUL8, simulation).

Question no 2: what are the advantages and

disadvantages of simulation?
Main advantages of simulation include:

Study the behavior of a system without building it.

Results are accurate in general, compared to analytical model.

Help to find un-expected phenomenon, behavior of the system.

Easy to perform ``What-If'' analysis.

Main disadvantages of simulation include:

Expensive to build a simulation model.

Expensive to conduct simulation.

Sometimes it is difficult to interpret the simulation results.

Simulation models (GEC ICT):

Can be used to compress a time frame, a simulation model run on a computer

system can be used to investigate quickly the effects of a change in a real life
situation that take place over several years.

Can be used to study complex systems that would otherwise be difficult to

investigate.

Can be used in engineering and product design to investigate the effect of changes

without producing a physical prototype.

Can be used to investigate situation that would be dangerous in real life.

There are disadvantages in using a simulation model:

We have a poor understanding of how some physical systems work so that we do not
have sufficient data to produce a mathematical model. For this reason it has not been
possible to create simulations that can accurately predict the occurrence and effects of
earthquakes and tsunami.

The formula and functions that are used may not provide an accurate description of the
system resulting in inaccurate output from the simulation.

Complex simulations can require the use of a computer system with a fast processor and
large amounts of memory.

There are two big advantages to performing a simulation rather than actually building the design
and testing it. The biggest of these advantages is money. Designing, building, testing,
redesigning, rebuilding, retesting for anything can be an expensive project. Simulations take the
building/rebuilding phase out of the loop by using the model already created in the design phase.
Most of the time the simulation testing is cheaper and faster than performing the multiple tests of
the design each time.
The second biggest advantage of a simulation is the level of detail that you can get from a
simulation. A simulation can give you results that are not experimentally measurable with our
current level of technology.
There are two big disadvantages to performing a simulation as well. The first of these
disadvantages is simulation errors. Any incorrect key stroke has the potential to alter the results
of the simulation and give you the wrong results. Also usually we are programming using
theories of the way things work not laws and theories are not often 100% correct.

The other large disadvantage is the fact that it is a simulation. Many people do not consider what
they do engineering unless they can see, hear, feel, and taste the project (Simulation Pros and
Cons, 2015).

Question no 3: What are the types of simulation?

Deterministic simulations contain no random variables and no degree of randomness, and
consist mostly of equations, for example difference equations. These simulations have known
inputs and they results in a unique set of outputs. Contrast stochastic (probability) simulation,
which includes random variables.
Deterministic simulation models are usually designed to capture some underlying mechanism or
natural process. They are different from statistical models (for example linear regression) whose
aim is to empirically estimate the relationships between variables. The deterministic model is
viewed as a useful approximation of reality that is easier to build and interpret than a stochastic
model (Wikipedia, 2015).
Deterministic System: one in which the next state is uniquely determined by the current state.
Stochastic System: one in which the next state is only probabilistically determined by the
current state - there are multiple possible next states that can occur subsequent to the same
activity, each with a given probability (Stochastic System, 2015).
The characteristics of technical systems are not unchanging; they vary however in the reality.
These realistic aspects as variability, uncertainty, tolerance and error have to be considered for
design of technical systems related to quality and reliability (OptiY0.
A probabilistic model includes elements of randomness. Every time you run the model, you are
likely to get different results, even with the same initial conditions. A probabilistic model is one
which incorporates some aspect of random variation.
A deterministic model does not include elements of randomness. Every time you run the model
with the same initial conditions you will get the same results (TKI).

Question no 4.

Describe Business Application of

Simulation
Answer: Simulated environments allow you to test out new ideas before you make a complex
business decision. This analysis technique lets you manipulate different parameters, such as
revenue and costs, to discover opportunities for improvement in your current operations.
Simulation models can give you a graphical display of information that can be edited and
animated, showing you what might happen if you take certain actions. Applying these results to
your business helps you manage risk and make better choices.
Training
An effective training simulation presents a realistic environment for users to experience complex
situations and try out new techniques.
Process Improvement
Simulation models of business processes help analysts examine business practices in order to
improve them. A typical simulation model focuses on a specific aspect of your business, such as
manufacturing or finance.
Predicting Outcomes
Using spreadsheets, you can simulate what might happen if certain conditions exist. This helps
you generate more accurate forecasts. You can use your existing data and manipulate it based on
potential changes, such as winning new deals or losing a major client
Managing Risk
Manipulating data enables you to examine how much you can invest or afford to lose under
certain simulated circumstances. For example, you can simulate cash flow, estimate return rates
7

and risk of new product introductions, determine the risk of exchange rate fluctuations or
determine investment strategies.

Exploring and Challenging Knowledge

Obviously the prime reason for using the simulation is to exercise the new knowledge presented
on course. Ideally a simulation must be chosen to map closely with the course knowledge.
However, the scope of the simulation scenario and the complexity of the model may mean that a
wider range of knowledge is needed and if this is not covered by prior learning then coaching,
additional readings or even course modification may be needed

Question no 5: what is the next event technique?

The definition of discrete event simulation is given here (Whatls.com)
Discrete event simulation (DES) is the process of codifying the behavior of a complex system as
an ordered sequence of well-defined events. In this context, an event comprises a specific change
in the system's state at a specific point in time.
Common applications of DES include stress testing, evaluating potential financial investments,
and modeling procedures and processes in various industries, such as manufacturing and health
care.
As an example of a situation that lends itself to DES, consider the amount of electrical power
consumed by a corporation's office building as a function of time. Discrete events affecting this
function include power-up or power-down of any electrical device in the building. Instantaneous
changes of state in a device already powered-up are also discrete events; for example, a speed
change in a cooling fan or brightness change in a desk lamp.
An effective DES process must include, at a minimum, the following characteristics:

Predetermined starting and ending points, which can be discrete events or instants in
time.

A method of keeping track of the time that has elapsed since the process began.

A list of discrete events that have occurred since the process began.

A list of discrete events pending or expected (if such events are known) until the process
is expected to end.

A graphical, statistical, or tabular record of the function for which DES is currently
engaged.

In the field of simulation, a discrete-event simulation (DES), models the operation of a system
as a discrete sequence of events in time. Each event occurs at a particular instant in time and
marks a change of state in the system. Between consecutive events, no change in the system is
assumed to occur; thus the simulation can directly jump in time from one event to the next.
This contrasts with continuous simulation in which the simulation continuously tracks the system
dynamics over time. Instead of being event-based, this is called an activity-based simulation;
time is broken up into small time slices and the system state is updated according to the set of
activities happening in the time slice. Because discrete-event simulations do not have to simulate
every time slice, they can typically run much faster than the corresponding continuous simulation
(Wikipedia, 2015).

Question no 6. Describe the importance of next

event technique in business.
Answer: In business next event technique plays a crucial role. It can be well understood with an
example.
ABC is a manufacturing company. It produces beauty soap. It uses next event technique at
several steps. At first they make order of raw materials from suppliers. Then the raw materials
are used for making the product. They cant use the machine until the raw materials are reached.
9

Then packaging of products occurred. The packaging is not possible until the products are ready
to use. Finally the products are completely ready and the next event is to distribute them to
retailers. Here each step follows next event technique.
Here the simulation software represents a set of whole requirements by using next event
technique. They are:

Weekly orders received from customers

Raw material supplied per week.
Production per week.
Amount dispatched to customers per week.
Raw material stored (units)
Finished goods stock (units)
Order backlog (units)
Target stock level for finished goods (units)

So, for the proper execution of the business using next event simulation technique is necessary

Question no 7. What are the characteristics of

simulation?
Answer: A simulation of a system is the operation of a model ofthe system. Simulation embodies
a principle of learning by doing - --- to learn about the system we must first build a model of
some sort and then operate the model. Within the overall task of simulation, there are three
primary sub-fields: model design, model execution and model analysis.

Model
Design

Model
Execution

Model
Analysis
10

Simulation is building a computer model that describes the behavior of a system. It also includes
experimentation of systems to reach towards a conclusion that supports effective decision
making.Moreover
Simulation is a technique for conducting experiments.
Simulation is a descriptive method There is no automatic search for an optimal solution.
It allows a manager to pose what if questions trial and an error approach to problem
solving and can do faster withfewer expenses, more accurately and at less risk.
A simulation model describes or predicts the characteristics of a given system under
different conditions. It is built through managers perspective.
The simulation process usually repeats an experiment many times to obtain an estimate (a
variance) of the overall effect of certain action.
When a problem is too complex (unstructured problem) to solve with numerical
optimization techniques simulation is used.

Question no 8. Why is simulation model better than

mathematical modeling?
Answer: Simulation is used before an existing system is altered or a new system built, to reduce
the chances of failure to meet specifications, to eliminate unforeseen bottlenecks, to prevent
under or over-utilization of resources, and to optimize system performance. The above
differences reflect the features that make simulation superior to mathematical model.
Mathematical Model

Simulation Model

A mathematical model is a description of a Simulation is an appearance of reality.

system

using

mathematical

concepts

( Algorithms, equations)
Model represents reality.

Simulation imitates it.

Mathematical model can de dynamic or static.

It may be deterministic or stochastic.

Used in relatively Simple systems

Large and complex systems

To study the effects of different components To reach valid conclusions towards future
11

and to make predictions about behavior.

system improvement.

Changes are not reflected in mathematical With the changes of time information changes
models.

and it reflects in simulation model. This single

characteristic makes the simulation model
better than the mathematical model.

References
I.

Anu Maria (n.d.) INTRODUCTION TO MODELING AND SIMULATION,.

12

II.

Advantage

and

disadvantage

of

simulation

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All

Business,(2015).

Business

Glossary.

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Computer Science Illuminated,(20145). simulation, graphics and other applications.

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V.
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http://en.wikipedia.org/wiki/Mathematical_model
http://en.wikipedia.org/wiki/Stochastic_simulation#Next_reaction_method
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%20Modeling%20and%20Simulation%20by%20Anu%20Maria.pdf

VIII.

http://imap.acqnotes.com/Attachments/White%20Paper%20Introduction%20to
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IX.
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http://www.cs.ubbcluj.ro/~per/Dss/Dss_11.pdf
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13

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14