Lecture No.13
Chapter 4
Contemporary Engineering Economics
Copyright 2010
Contemporary Engineering Economics, 5th edition, 2010
Debt
Managemen
t
Credit card debt
and commercial
loans are among
the mos
Chapter 10
Verification and Validation
of Simulation Models
Banks, Carson, Nelson & Nicol
Discrete-Event System Simulation
Purpose & Overview
The goal of the validation process is:
To produce a model
Random-Number
Generation
Properties of Random Numbers
Random Number, Ri, must be independently drawn from a
uniform distribution with pdf:
U(0,1)
1, 0 x 1
f ( x) =
0, otherwise
2
x
E ( R ) = xdx =
0
MONTECARLO (STATIC) SIMULATIONS
Examples
Monte-Carlo (Static) Simulation
Estimating profit on a sale promotion
Newsvendor problem
Estimating value
Approximating integrals
Profit on a Sale Promotion
Fu
INVENTORY SYSTEMS
Inventory Systems
Assume periodic review, i.i.d. random demands,
constant (possibly non-zero) lead times and full
backlogging.
When to order?
How much to order?
Inventory Costs
Orde
QUEUEING SYSTEMS
Queueing Systems
Entities
Population
Server
Waiting Line (Queue)
Finite vs.
Infinite
One line vs.
Multiple lines
One server vs.
multiple server
Characteristics
Interarrival and Servic
GAMBLERS RUIN in a FAIR GAME
Gamblers Ruin in a Fair
Game
In a fair game, let player A has a fortune of k and player B
has a fortune of l. At each iteration of the game, the winner
takes one unit from
Modeling Basic
Operations and
Inputs
Chapter 4
Last revision June 21, 2009
Simulation with Arena, 5th ed.
Chapter 4 Modeling Basic Operations and Inputs
Slide 1 of 68
What Well Do .
Model 4-1: Electro