SIMULATION MODELING AND ANALYSIS

WITH ARENA

T. Altiok and B. Melamed

Chapter 1
Introduction to Simulation Modeling
 Simulation Modeling
• Paradigm that creates simplified representations of
complex systems

• Generates system histories and observes system behavior

and statistics over time

• Goals are understanding system performance and

improving system design

Altiok / Melamed Simulation Modeling and Analysis with Arena 2

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 System vs. Its Model

• Simplification
Real System • Abstraction Model
• Assumptions

Altiok / Melamed Simulation Modeling and Analysis with Arena 3

Chapter 1
 Model Classification

• Physical (prototypes) • Descriptive

(performance analysis)
• Analytical
(mathematical)
• Prescriptive
• Computer (optimization)
(Monte Carlo
Simulation)

Altiok / Melamed Simulation Modeling and Analysis with Arena 4

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 Typical Uses of Simulation
• Estimating a set of productivity measures in production systems, inventory
systems, manufacturing processes, materials handling and logistics
operations.

• Designing and planning the capacity of computer systems and

communication networks so as to minimize response times.

• Conducting war games to train military personnel or to evaluate the efficacy

of proposed military operations

• Evaluating and improving maritime port operations, such as container ports

or bulk-material marine terminals (coal, oil or minerals), so as to find ways of
reducing vessel port times.

• Improving health care operations, financial and banking operations,

transportation systems and airports, among many others.

Altiok / Melamed Simulation Modeling and Analysis with Arena 5

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 Model Building Process

• Problem analysis and information collection

• Data collection
• Model construction
• Model verification
• Model validation
• Construction and execution of simulation experiments
• Output analysis
• Recommendations

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 Example:
A Production Control Problem
Fill / Seal
Process Warehouse
Demand
Raw
Material
Lost
Customers

• A packaging/warehousing process
• Product is filled, sealed and put into boxes
• Boxes are taken to warehouse
• Customers arrive with product demand

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 Operational Issues
• Process never starves (raw material is always available)

• Packing is in batches of 5 (10-20 minutes/batch)

• Process failures
• time to failure is distributed as Expo(200) minutes
• repair time is distributed as Norm(90,45) minutes

• Target stock level is R = 500 units and the reorder point is

r = 150 units

• Customer inter arrival time is distributed as Unif(3,7) hours

• Demand size is distributed as Unif(50,100) units

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 Design and Performance Issues
• Can we improve the customer service level (percentage of
customers whose demand is completely satisfied)?

• Is the machinery under-utilized or over-utilized (machine

utilization)?

• Is the maintenance level adequate (downtime probabilities)?

• What is the trade-off between inventory level and customer

service level?

Altiok / Melamed Simulation Modeling and Analysis with Arena 9

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