StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

BUSINESS SIMULATION MODELLING - Essay Example

Cite this document
Summary
Simulation in general term involves development of a model of real phenomenon (Bhattacharya, 2009, p.116), then making experiments on the evolved model. In simulation, a provided system is copied and manipulation…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.4% of users find it useful
BUSINESS SIMULATION MODELLING
Read Text Preview

Extract of sample "BUSINESS SIMULATION MODELLING"

Download file to see previous pages

Finally, evaluate the results of simulation (Banks, 2005, p.16). Although there are many types of simulation, this project focuses on probabilistic simulation using Monte Carlo method (Torries, 1998, p.59). It is also called computer simulation which is a numerical technique involving the modelling of a stochastic system to predict the systems behavior. The essential charactertistic of Monte Carlo simulation is the chance element (Kalos and Whitlock, 2008, p.116). This approach is used when the process given has a random or chance component.

In this method, a given problem is solved by simulating the original data with random number generators (Pinsky and Karlin, 2010, p.285). The model constructed here is the probability distribution of the variable in question. The distribution can be obtained through direct observation or from past records (Hoekstra and Shachak, 1999, p.180). The objective of the research project is to make simulation of an inventory system. The inventory management simulation is a computer based simulation which generates demand and maintains all necessary records.

Independent demand inventory models follow the classical model of economic order quantity. Inventory holding firms will bear two kinds of costs, ordering and holding costs. Ordering costs include items like labour, transportation, order processing and inspection. It is stated generally as a fixed cost per order and variations can also be included like quantity discounts. Holding costs include items like insurance, obsolescence, warehousing, taxes, management. It is stated as a percentage of unit cost per time period or an amount per item per time period.

The EOQ model can be defined as a classical tradeoff model as with the increase in number of orders per time period, the ordering cost increases and holding cost decreases. The purpose of inventory management is to minimize both ordering and holding costs. When variation is

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“BUSINESS SIMULATION MODELLING Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
BUSINESS SIMULATION MODELLING Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/miscellaneous/1614975-business-simulation-modelling
(BUSINESS SIMULATION MODELLING Essay Example | Topics and Well Written Essays - 1000 Words)
BUSINESS SIMULATION MODELLING Essay Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/miscellaneous/1614975-business-simulation-modelling.
“BUSINESS SIMULATION MODELLING Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/miscellaneous/1614975-business-simulation-modelling.
  • Cited: 0 times

CHECK THESE SAMPLES OF BUSINESS SIMULATION MODELLING

The Use of Simulation and Modeling Techniques

This paper ''The Use of simulation and Modeling Techniques'' tells us that given the overall complexity of the business as well as the increasing nature of the competition, it has become more important for businesses to develop techniques that can provide them an opportunity to anticipate  scenarios to better prepare themselves.... Business modeling and business process simulation are two of the major techniques used by firms to understand and model different scenarios and risks so that better strategic response can be developed....
5 Pages (1250 words) Term Paper

Business Intelligence System modeling

hellip; The business model, which takes into account change processes in business environment, applies decision analysis, monte carlo simulation, data envelopment, exponential smoothing, and non linear programming.... For any business that intends to grow, there must be a policy that promotes change.... The contemporary business environment depends on how information system is applied.... business processing model is part of systems model that is useful in converting change management strategy proposals of a business into real applicability....
4 Pages (1000 words) Essay

Simulation and systems modelling

This report represents the latest trend in applications of discrete simulation modeling in manufacturing and other engineering industries.... It starts with giving an overview of simulation in general providing basic definitions of simulation, model, and discrete event simulation (DES), explaining the need of simulation as a powerful management tool, and present some developments in simulation software and simulation benefits....
12 Pages (3000 words) Essay

Modeling Evaluation

Structural equation modelling: An introduction to basic techniques and advanced issues.... On the use of formative measurement specifications in structural equation modelling: A Monte Carlo simulation study to compare covariance-based and partial least squares model estimation methodologies.... Structural equation modelling in management research: A guide for improved analysis.... Furthermore, researchers in the areas of organizational behavior, management, business, and applied psychology are often interested in multivariate relationships among some or all of the variables in a specified model....
2 Pages (500 words) Essay

Significance of Business Process Modelling in Modern Day Context

rom this study it is clear that business process modelling's chief objective is to enhance the performance of the business by optimising the effectiveness of connecting activities in the provision of the products or services.... The chief aim of the essay is to comprehend the significance and the benefits of business process modelling in modern day context.... It will begin with the discussion of the meaning of the business process modelling with certain examples....
14 Pages (3500 words) Essay

Business Modelling and Linear Regression Analysis

This essay "Business modelling" will look at some of these models and their strengths and limitations.... nbsp;Business modelling has been used for so long to solve business problems and develop strategies for the success of these businesses.... hellip; This is a technique of statistical analysis that helps business managers, economists, and even business researchers forecast the trends of their businesses in the coming future....
8 Pages (2000 words) Essay

Agent-Based Modeling in Architecture

In addition, at the present, we have more micro-data that is helpful in managing the business operations and activities in an appropriate manner (Walsh, 2009).... This paper “Agent-Based Modeling in Architecture” offers a detailed analysis and exploration of the Agent-based modeling and multi-agent systems....
15 Pages (3750 words) Term Paper

Business Process Modelling: SIMUL8

The "Business Process modelling: SIMUL8" paper assesses the relevance and exactitude of the SIMUL8 planner model to provide a simulation of a composite planner model that would be reflective of the actual production process, enabling the company to assess the production line.... hellip; The complexity of the industry invites a special approach as far as Business Process modelling is involved as it incorporates the diversity, security, and privacy of the actors....
7 Pages (1750 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us