After completing this chapter, you should be able to:
- Explain what the term simulation means and how simulation differs from analytical techniques.
- Explain the difference between discrete and continuous simulations, between fixed-interval and next-event simulations, and between discrete and probabilistic simulations.
- List and briefly describe the steps in simulation.
- Use the Monte Carlo method to generate random numbers.
- Conduct manual simulations using various distributions.
- Conduct simulation with Excel using various distributions.
- Conduct simple waiting-line simulation using Excel.
- Conduct inventory management simulation using Excel.
- List the advantages and limitations of simulations.