Types of Simulation

1) Operational Gaining Method:

This refers to those situations involving conflict of interest among players or decision makers within the framework of a simulated environment. The two most widely used forms of operational gaming are military games and business management games (mostly computer oriented)

• Military gaming is essentially a training device for military leaders, enabling them to test alternative strategies under simulated war conditions.
• Management games have gained wide acceptance in business and education. The primary use of business games is to help the participants be they executive in the industry or students in business develop their ability to
• Make difficult interdependent business decisions
• Evaluate new ideas and
• Introduce new techniques of decision making, (all in a simulated environment)
• Simulation of business environment provides valuable experience in conceptualizing ideas and in logical thinking.

 

2) Monte Carlo Method:

In Monte Carlo simulation the behavior of at least some components of the model are probabilistically determined. It can be used to solve several different classes of problems. The first are problems that involve some kind of stochastic process while the second are deterministic methods.

To carry out a realistic simulation involving probabilistic elements, it is necessary to avoid bias in the selection of the values which vary. This is done by selecting randomly using one of the following methods.

•    Random nos. generated by computers
•    Random no. tables
•    Variables in a Simulation Model

A business model usually consists of linked series of equations and formulae arranged so that they behave in a similar manner to the real system being investigated.

Posted Date: 12/6/2012 7:47:50 AM | Location : United States

Ask an Expert

Related Discussions:- Types of simulation-operational gaining-monte carlo method, Assignment Help, Ask Question on Types of simulation-operational gaining-monte carlo method, Get Answer, Expert's Help, Types of simulation-operational gaining-monte carlo method Discussions

Write discussion on Types of simulation-operational gaining-monte carlo method
Your posts are moderated

Write your message here..

Related Questions

Illustrate the marginal cost pricing, Marginal cost or incremental cost pri... Marginal cost or incremental cost pricing method: Here the company may work on the premise of recovering its marginal cost and getting a contribution towards its overheads. Thi

Sales of cool-man air conditioners, Sales of Cool-Man air conditioners have... Sales of Cool-Man air conditioners have increase steadily during the past five years: Year    Sales 1        450 2        495 3        518 4        563 5        584 6          ?

draw a timeline for the assembly department, #queComputing equivalents uni... #queComputing equivalents units and assigning costs to completed units and ending work in process; no beginning inventory or cost transferred in (30 -45min) Sue Electronics makes

Cost estimation, engineering method of cost estimation engineering method of cost estimation

What is cost unit, What is Cost unit While the cost centres assists in ... What is Cost unit While the cost centres assists in ascertaining costs by location, person, equipment, operation or process, cost unit is a unit of product, service or a combin

Transient analysis-absorbing state, Transient Analysis A state is said... Transient Analysis A state is said to be transient if it is impossible to move to that state from any other state except itself. This state is temporary and eventually a stead

C-v-p analysis under uncertainty, C-V-P ANALYSIS UNDER UNCERTAINTY A ma... C-V-P ANALYSIS UNDER UNCERTAINTY A major limitation of the basic C.V.P analysis is the assumption that the unit variable cost, selling price and the fixed costs are constant an

#titleCORPORATE GOVERNANCE, Final paper: CAPM and Capital Structure (2500 w... Final paper: CAPM and Capital Structure (2500 words max) Reflect on the course materials with specific focus on the last two papers (Sharpe; Modigliani & Miller). Synthesize the k

The securities and exchange commission (sec), Explain:- Q.1 As a potent... Explain:- Q.1 As a potential investor, what is the problem with different countries having different accounting standards? As the president of a multinational company, what is

Strategic plan, How to write introduction on strategy plan How to write introduction on strategy plan