Handbook of Real-World Applications in Modeling and Simulation

Chapter Six

Business Process Modeling

Rafael Diaz

Joshua G. Behr

Mandar Tulpule

6.1 Introduction and Learning Objectives

Presented in this chapter is foundational information relating to the three common Business Process Modeling Paradigms, discrete-event simulation, system dynamics simulation, and Monte Carlo simulations. Application examples for each approach are provided in the business context. Short questions are provided from each section to stimulate review and discussion.

6.2 Background

The fundamental motivation underlying modern business modeling and simulation (M&S) has its roots in the human drive to manipulate and control the environment. Our cognitive ability to identify patterns or regularities in both natural and social environments is the first step toward the controlled management of our surroundings. A “pattern” is necessarily a relational association or regularity among the objects, processes, or concepts within defined bounds that constitute a system. If we detect a pattern among a system's objects, then we necessarily have insight into what will follow. The human ability to detect and recognize patterns provides an opportunity for us to make predictions of what we may expect given a set of conditions. Along with an understanding of these patterns comes the potential to manipulate or alter the pattern in an effort to realize an envisioned outcome. Thus, the aspiration to control our physical, social, and economic environments is the guiding force in the development ...