Operations Management: Sustainability and Supply Chain Management, Twelfth Edition

Summary

Simulation involves building mathematical models that attempt to act like real operating systems. In this way, a real-world situation can be studied without imposing on the actual system. Although simulation models can be developed manually, simulation by computer is generally more desirable. The Monte Carlo approach uses random numbers to represent variables, such as inventory demand or people waiting in line, which are then simulated in a series of trials. Simulation is widely used as an operations tool because its advantages usually outweigh its disadvantages.