Prescriptive Analytics: The Final Frontier for Evidence-Based Management and Optimal Decision Making

3. Simulation Modeling for Decision-Making

Generally speaking, simulation is an imitation of reality within a computer environment. That is, a simulation is the computerized representation of a given real-world situation. To simulate, a model of the real-world scenario needs to be developed. Such a model is designed to represent the key characteristics, behaviors, and functions of the physical or abstract world, system, or process. Although simulation is usually developed to mimic the reality, sometimes it is developed for situations beyond reality—imaginary, surreal, “future” worlds. Perhaps the best example of the simulation of surreal worlds is video games. Many would agree that video games represent the most advanced, the leading edge of ...