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Module F
Module F
MODULE
PowerPoint presentation to accompany
Heizer and Render
Operations Management, Eleventh Edition
Principles of Operations Management, Ninth Edition
© 2014
© 2014
Pearson
Pearson
Education,
Education,
Inc.Inc. MF - 1
Outline
► What Is Simulation?
► Advantages and Disadvantages of
Simulation
► Monte Carlo Simulation
► Simulation and Inventory Analysis
The
Introduce variables
Process of
Simulation Construct model
Specify values
of variables
Conduct simulation
Examine results
Figure F.1
Select best course
© 2014 Pearson Education, Inc. MF - 8
Advantages of Simulation
1. Can be used to analyze large and
complex real-world situations that
cannot be solved by conventional
models
2. Real-world complications can be
included that most OM models cannot
permit
3. “Time compression” is possible
1 10 06 1 9 0 No
2 0 9 63 3 6 0 No
3 0 6 57 3 3 0 Yes 02 1
4 0 3 94 5 0 2 No
5 10 10 52 3 7 0 No
6 0 7 69 3 4 0 Yes 33 2
7 0 4 32 2 2 0 No
8 0 2 30 2 0 0 No
9 10 10 48 3 7 0 No
10 0 7 88 4 3 0 Yes 14 1
Totals: 41 2
Average 3 orders
number of = = .3 order/day
orders placed 10 days