Heuristics

The word is derived from Greek and means ‘serve to discover or stimulate investigation’. In problem
solving situations heuristics are ‘rules of thumb’ that allow one to factor the complex perceived world
into simple components and help in reduction of search in the problem-solving activities. Generally,
heuristics are based on experience, analogy or creative reflection of the analyst. It is generally an
iterative algorithm converging towards a feasible and good solution.

Definition of Heuristics

The concept of heuristics is not new. The word ‘heuristic’ was initially coined by the Greeks; its original
form was heuriskein, which meant “to discover”. Heuristic, as an adjective, means, “serving to discover
or stimulate investigation”. In heuristics, one endeavours to understand the process of solving problems,
especially the mental operation of a human problem-solver, which is most useful in this process.

Why Use Heuristics?

There are several reasons for using heuristic methods for solving problems. These, according to Silver, et
al (1980) are as follows:

1. The mathematical problem is such that an analytic (closed form) or iterative solution procedure
is unknown.
2. Although an exact analytic or iterative solution procedure may exist, it may be computationally
prohibitive to use or it may be unrealistic in its data requirements. This is particularly true of
enumerative methods, which, in theory, are often applicable where analytic and iterative
procedures cannot be found.
3. The heuristic method is simpler for the decision maker to understand, hence, it markedly increases
the chances of implementation.
4. For a well-defined problem that can be solved optimally, a heuristic method can be used for
learning purposes, for example, to develop an intuitive feeling as to what variables are important
(this closely parallels one of the primary reasons for using simulation methods in operations
research).

SIMULATION MODELLING

There are several meanings attached to simulation. It can be the subject of replicating a mathematical
model over time to study the behaviour of the system it represents. It will be used as an integrating sense
by breaking a large complex system into smaller parts and then synthesising them using approximate
relations among the parts. The synthesised system is then run on a computer over a period in order to
fit well with reality. In this sense it is an experiment. It can be used as a numerical method to derive
solutions to models and test them. The simple Moute Carlo system and simulation experiments are
detailed along with illustrations.

simulation
A simulation is the imitation of the operation of a real-world process or system over time. A simulation
model is a descriptive model which represent a dynamic phenomenon, a set of decision alternatives,
cause-effect relationship, etc. It involves the generation of an artificial history of the system in order to
draw inferences about the real system. It is also known as the experimental arm of operations research.

Meaning of Simulation
Simulation has different meanings for different people and in different contexts. Its applications range
from physical to biological systems, aerospace to military systems and political systems, health care to
industrial systems. Computer simulation modelling has had an impact on studying complex social
phenomena. Mathematical, simulation and artificial intelligence models are being applied to research
in social and behavioural sciences (Liebrand et al, 1998). For the purpose of research methodology in
management, our interest will be in application simulation for problem solving in a decision making
context. Problems formulated for simulation are symbolically modelled. Their solutions are derived
either analytically or numerically. Analytical solutions are derived using calculus, algebra, or
probability theory. When the solutions cannot be derived or are extremely tedious to derive, numerical
methods are employed. In these methods, numerical test values of variables and parametres are arranged
over a range iteratively and a set of solutions are obtained. The best solution is chosen. Simulation is
one of the procedures undertaken in numerical methods of solutions to models.

A simulation is the imitation of the operation of a real-world process or system over a period of time.
Whether done by hand or on a computer, simulation involves the generation of an artificial history of a
system, and the observation of that artificial history to draw inferences concerning the operating
characteristics of the real system.