Supply Chains: A Manager's Guide

Simulation Models

As the preceding paragraph suggests, much of the power of mathematical models comes from distilling complex relationships down into relatively simple mathematical forms. For systems with known relationships that can be captured in equations, mathematical models are usually the best way to go. But sometimes the relations among components don't conform to simple equations. Alternatively, they may fit an equation just fine, but there is no way of knowing what that equation might be. In such cases, simulation models are usually a better approach. Like a mathematical model, a simulation is a special kind of system, with inputs, outputs, and parameters. The difference is that simulations are a bit more literal than mathematical models: ...