Simulation
Techniques
and Methods
Understanding Tools for Modeling
and Analysis
What is
Simulation?
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• The imitation of real-world
processes or systems over time.
• Analyze behavior, test scenarios,
and support decision-making.
2
Why Use
Simulation?
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•Cost-effective
•Reduces risk
•Supports complex decision-making
•Predicts future outcomes
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Simulation
Types
Overview
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• Monte Carlo Simulation
• Discrete-Event Simulation (DES)
• Agent-Based Simulation (ABS)
• System Dynamics (SD)
• Continuous Simulation 4
Monte Carlo Simulation
•Description: Uses random sampling
and statistical modeling to estimate
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outcomes.
•Use Cases: Risk analysis, finance,
project management, reliability
engineering.
•Example: Estimating the probability
of a project being completed on time
given uncertain task durations.
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Discrete-Event Simulation
•Description: Models a system as a
sequence of events in time (events
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occur at discrete time points).
•Use Cases: Manufacturing systems, Subtitle lorem ipsum dolor
queueing networks, logistics.
•Example: Simulating a hospital
emergency room to study patient flow
and reduce wait times.
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Agent-Based Simulation
•Description: Models individual
entities (agents) with behaviors and
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interactions.
•Use Cases: Social systems, traffic Subtitle lorem ipsum dolor
flow, market dynamics, epidemiology.
•Example: Simulating the spread of a
virus based on individual movements
and interactions.
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System Dynamics
•Description: Uses feedback loops
and time delays to model continuous
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processes.
•Use Cases: Policy analysis, business Subtitle lorem ipsum dolor
strategy, environmental modeling.
•Example: Modeling population
growth or resource depletion over
time.
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Continuous Simulation
•Description: Represents systems with
continuously changing variables, often
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using differential equations.
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•Use Cases: Physical and engineering
systems (e.g., chemical processes).
•Example: Simulating the temperature
change in a reactor over time.
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Tools & Software
• AnyLogic – Supports DES, ABS, and SD.
• Simulink – Used for continuous and hybrid
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simulations.
• Arena, SIMUL8 – For discrete-event
modeling.
• NetLogo – Popular for agent-based modeling.
• Crystal Ball, @Risk – Excel-based Monte
Carlo tools.
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Simulation Process
Steps
•Problem Definition – What are you trying to analyze or improve?
•Model Design – Abstract the real-world system into a logical model.
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•Data Collection – Gather data to populate the model.
•Model Implementation – Use software to build the simulation.
•Verification & Validation – Ensure the model behaves correctly and represents reality.
•Experimentation – Run scenarios, tweak parameters, analyze outcomes.
•Interpretation – Translate results into actionable insights.
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Applications of
Simulation
•Manufacturing & Operations
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•Healthcare & Epidemic Modeling
•Finance & Risk Management
•Transportation & Urban Planning
•Military & Defense
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Summary
•Simulation is powerful for decision-
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making.
•Choose the right method based on
your system.
•Combine tools, data, and expertise for
best results.
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Than
k You
