Wednesday, April 15, 2009

Why Simulate?

Simulation is "learning-by-doing". Simulation offers several advantages over real-life experimentation. Most important of these advantages are:

Cost: Experimenting in real life is costly.

In real life its really difficult to repeat the exact circumstances again so you only get one chance to collect the results and you can't test different ideas under the exact same circumstances. With simulation you can test the same system again and again with different inputs.

Time: With simulation you can run 2, 10 or even 100 years into the future in seconds. So you get the answer now instead of when its too late to do anything about it.

Alternatively speaking, with simulation, you get:
  • Higher quality and efficiency from capital assets
  • Better management of inventory
  • Higher return on assets

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