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Unformatted text preview: CHAPTER 10 SIMULATION MODELING SOLUTIONS TO DISCUSSION QUESTIONS 101. Advantages of simulation: (1) relatively straightforward; (2) can solve large, complex problems; (3) allows what if questions; (4) does not interfere with realworld systems; (5) allows study of interactive variables; (6) allows time compression; (7) allows inclusion of realworld complications. Disadvantages; (1) cost; (2) no optimal solutions; (3) managers must generate conditions to test; (4) each model is unique. 102. (a) Inventory ordering policy: May require simulation if lead time and daily demand are not constant. Simulation is also useful if data do not follow traditional probability distribution. (b) Ship docking in port to unload: If arrivals and the unloading process do not follow Poisson/exponential distributions common to queuing problems, or if other queuing model assumptions are violated (for example, FIFO not observed). (c) Bank teller service windows: If arrivals or service times do not follow standard distributions, or if several waiting lines exist, may be easier to use simulation. (d) U.S. economy: Because mathematical equations and relationships are too complex to solve mathematically and because an optimal solution may not exist. 103. Problems with conditions of certainty can be solved more easily by other decision modeling techniques. Problems that require quick answers that cannot wait for a simulation model to be built are a second category. 104. Major steps are: (1) define problem, (2) introduce important variables, (3) construct model, specify values to test, (4) conduct simulation, (5) examine results, (6) select best plan. 105. When a system contains elements that exhibit chance in their behavior, the Monte Carlo method of simulation may be applied. The basis of Monte Carlo simulation is experimentation on the chance (or probabilistic ) elements through random sampling. Monte Carlo steps: (1) set up probability distribution(s), (2) set up cumulative probabilities, (3) establish random number intervals, (4) generate random numbers, and (5) simulate trials. 106. A computer is necessary for three reasons: (1) it can do time periods or trials in a matter of seconds or minutes, (2) it can quickly examine and allow change in the complex interrelationships being studied, and (3) it can internally (through a subroutine or function statement) generate random numbers by the thousands or millions. 107. Operational gaming is a simulation involving competing players. Systems simulation tests the operating environment of a large system such as a corporation, government, or hospital 108. Simulation may very well increase in use for several reasons: (1) computers are commonly used in all types and sizes of businesses, (2) simulation languages may be refined and made easier for noncomputerexpert managers to use, especially with the advent of spreadsheet approaches, (3) the mass of graduates educated in decision modeling entering the corporate world is growing,...
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 Spring '10
 Bryan

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