APPLIED OPERATIONS RESEARCH

SIMUALTION - PART A
1. What is Simulation?
It is the imitation of the operation of a real world process or system over time.
It is a numerical technique for conducting experiments that involve certain types of
mathematical and logical relationships necessary to describe the behaviour and structure
of a complex real world system over extended period of time.
2. Areas of Application.
i) Manufacturing systems
ii) Transportation systems
iii) Construction systems
iv) Food Processing
v) Computer System Performance
3. A System is defined as the collection of objects / ideas which permits identification as a
whole coherent logical functional unit.
4. The Components of a System are:
 Entity – It is an object of interest in the system
 Attribute – It is an entity of a system whose collective performance determines
the output of the system.
 Activity – It represent a time period of specified length.
 Variables – The different values at different times.
 State – It is defined as the collection of variables necessary to describe the system
at any time, relative to the objectives of the study.
 Event - It is an instantaneous occurrence that may change the state of the system.
 Parameters – it is the attributes, which do not change during an experiment, but
the values can be changed only by the end of experiments.
 Relationships – It is the connection between attributes, variables and parameters
that control the change in the system.
Example: -
System Entities Attributes Activities Events State variables
Bank Customers Checking Making Arrival & Number of busy
Account Deposits Departure tellers;
Balance Number of
customers waiting

5. When to use Simulation?

 If it is possible to develop a mathematical solution.
 If the actual observation of a system may be too expensive
 If the actual environment is too difficult to understand.
 If there may not be able to wait for a long period to study the system extensively.
 If the actual operation and observation of a real system may be too disruptive.

6. Discrete & Continuous System

Discrete - It is the one, which the state variables change only at a discrete set
of points in time.
 E.g. In a bank, the no. of customers (state variables) changes only when the service is
completed for a customer.

Continuous – It is one in which the state variables change continuously over time

E.g. Head of water behind a dam varies time to time during rainfall season.

7. Model of system – It is defined as the actual representation of a system for a purpose of

studying the system in order to facilitate the actual system.

8. Types of Models
Based on Classification
Example
Physical It is the representation of 3 dimensional object Aircraft, Multi-storey
building, Dam
Schematic It is the representation of 2 dimensional object Map, Chart, Circuit,
Representation
Graph, Networks
Symbolic It is represented by a set of mathematical LP formulation,
equation computer programs
Static It represent a system at a particular point in
time and does not change with time

Timing Nature MONTE CARLO SIMULATION

Dynamic It represents a system as it changes over the Queueing system,
time. Inventory model,
Replacement models
Deterministic These models have a set of known inputs, Arrival of patients in a
which will result in a unique set of outputs. clinic at the scheduled
appointment time.
Stochastic This model has one more random variables at Simulation of banking
Input Nature
inputs, which will result in a random output. system, which involves
random inter arrival
times and random service
time.

9. MONTE CARLO SIMULATION (Developed by JOHN VON NEUMANN & S. M.

ULAM)
“It involves random sampling from a known probability distribution and yields a solution which will be very close to optimal.”

10. Steps involved in Monte Carlo Simulation.

a) Identify the objectives of the problem and clearly define the problem.
 b) Construct an appropriate model and clearly specify the variables,
parameters and
the manner in which the time will change Define the relationship between the
variables and parameters.
c) Prepare the model for experimentation by specifying the number of runs of
simulation to be made.
d) Set up the table and assign tag numbers, with the help of cumulative
distribution
Function. The assigned tag numbers should reflect the probability of various
events.
e) Generate random number and choose the corresponding number. Then
select the
variable value corresponding to the tag number.
f) Generate random numbers at many numbers of trials and compute the
values for
different trials. The optimal solution will be the average values of different trials.

11. Properties of Random Numbers

 Random numbers should be uniformly distributed.
 It must be statistically independent.
 They must have sufficiently long period.
 The numbers must be generated at high speed.
 They must occupy less memory.
 There should not be a cyclic.

12. Techniques for generating Random Numbers

a. Mid Square Method
b. Mid Product Method
c. Constant Multiplier Method
d. Mixed (Or) Linear Congruential Method
e. Multiplicative Congruential Method
f. Additive Congruential Method

13. Tests for Random Numbers – To ascertain the UNIFORMITY & INDEPENDENCE
i. Frequency Test - UNIFORMITY
ii. Runs Test - UNIFORMITY
iii. Auto Correlation Test - INDEPENDENCE
iv. Gap Test - INDEPENDENCE
v. Poker’s Test - INDEPENDENCE

14. Advantages and Disadvantages of Simulation Technique