Advertisement |
Advantages of simulation are enumerated below:
1. Simulation techniques allow experimentation with a model of the system rather than the actual operating system. Sometimes experimenting with the actual system itself could prove to be too costly and, in many cases too disruptive. For example, if you are comparing two ways of providing food service in a hospital, the confusion that would result from operating two different systems long enough to get valid observations might be too great. Similarly, the operation of a large computer central under a number of different operating alternatives might be too expensive to be feasible.
1. Simulation techniques allow experimentation with a model of the system rather than the actual operating system. Sometimes experimenting with the actual system itself could prove to be too costly and, in many cases too disruptive. For example, if you are comparing two ways of providing food service in a hospital, the confusion that would result from operating two different systems long enough to get valid observations might be too great. Similarly, the operation of a large computer central under a number of different operating alternatives might be too expensive to be feasible.
2. The non-technical manage can comprehend simulation more easily than a complex mathematical model. Simulation does not require simplifications and assumptions to the extent required in analytical solutions. A simulation model is easier to explain to management personnel since it is a description of the behaviour of some system or process.
3. Sometimes there is not sufficient time to allow the actual system to operate extensively. For example, if we were studying long-term trends in world population, we simply could not wait the required number of years to see results. Simulation allows the manger to incorporate time into an analysis. In a computer simulation of business operation the manager can compress the result of several years or periods into a few minutes of running time.
4. Simulation allows a user to analyze these large complex problems for which analytical results are not available. For example, in an inventory problem if the distribution for demand and lead time for an item follow a standard distribution, such as the poison distribution, then a mathematical or analytical solution can be found. However, when mathematically convenient distributions are not applicable to the problem, an analytical analysis of the problem may be impossible. A simulation model is a useful solution procedure for such problems.
====================================================================
Disclaimer: This site is mainly dedicated for Students of CA, ACCA, CIMA, CMA, CGA, CPA, CFA, BBA, MBA and related students of other colleges and universities in Accounting, Management Accounting and Cost Accounting , Students of Higher Education in Accounting, Admission in Accounting Schools, Scholarship in Accounting, Students of MBA, University admission information, College of Accounting, Accounting Notes, Accounting Training, Accounting Tuition, Accounting Study Guidelines, Management Accounting