Chapter 1

Introduction to Simulation
System, Model and Simulation
System
The term system is derive from the Greek word systema, which means an
organized relationship among functioning units or components units or
components.
A system is defined as an aggregation of objects or components joined in some
regular interaction or interdependence.
Systems are designed to achieve one or more objectives.
Interrelationship and interdependence must exists among the system components.
The objectives of the organization as a whole have a higher priority than the
objectives of its subsystems.

Model
A model is a simplified representation of a system at some particular point in time
or space intended to some particular point in time or space intended to promote
understanding of the real system.
 Model is a conceptual framework that describes the system.
Modelling is the process of representing a model which includes its construction and
working. This model is similar to a real system, which helps the analyst predict the
effect of changes to the system.

Simulation
The representation of the behavior or characteristics of one system through the use of
another system, specially a computer program designed for the purpose.
It is a program that mimics (imitate) the behavior of the real system of the real system.
Simulation is the representation of a real life system by another system, which depicts
the important characteristics of the real system and allows experimentation on it.
A model construct a conceptual framework that describes a system. The behavior of a
system that evolves over time is studied by developing a simulation model.
Figure: Example of model of a system
Figure: Example of model of a system
Why Simulation?

It may be too difficult, hazardous, or expensive to observe a real, operational

system
A model can be used to investigate a variety of ‘what if’ questions about
real-world system. Using simulation we can discover the change in system,
output as the input parameter changes.
Parts of the system may not be observable (e.g. internals of a silicon chip or
biological system).
Simulation can be used as an analysis tool for predicating the effect of changes.
Simulation can be used as a design tool to predicate the performance of new
system.
So it is better to do simulation before implementation.
When Simulation is Appropriate
Simulation enable the study of internal interaction of a subsystem with complex
system.
Informational, organizational and environmental changes can be simulated and
find their effects.
A simulation model help us to gain knowledge about improvement of system.
Finding important input parameters with changing simulation inputs.
Simulation can be used with new design and policies before implementation.
Simulating different capabilities for a machine can help determine the
requirement.
Simulation models designed for training make learning possible without the cost
disruption
The modern system (factory, wafer fabrication plant, service organization) is too
complex that its internal interaction can be treated only by simulation
When Simulation is not Appropriate

When problem can be solved analytically and easily.

If it is easier to perform direct experiments.
If the cost becomes too high such that cost exceeds saving.
If resource and time are not available.
If system behavior is too complex.
Discrete and Continuous System
Discrete System
A discrete system is one in which the state variable(s) change only at a discrete set
of points in time.
Changes in the state variable(s) are predominantly discontinuous.
Example: Number of customers waiting in line, Number of jobs in a queue, etc.

Figure: Discrete System Example

Continuous System
A continuous system is one in which the state variable(s) change continuously
over time.
Changes in the state variable(s) are predominantly continuous and smooth without
any delay.
Example: Head of water behind the dam, etc.

Figure: Continuous System Example

Types of Model
Physical Model
Physical models are based on some analogy between such systems as mechanical and
electrical or electrical and hydraulic.
In a physical model of a system, the system attributes are represented by measurements
such as voltage or the position of a shaft.
The system activities are reflected in the physical laws that drive the model.
For example the rate at which the shaft of a DC motor turns depends on the voltage
applied to the motor.
Mathematical Model
Mathematical models use symbolic notation and mathematical equation to represent a
system.
The system attributes are represented by variables, and the activities are represented by
mathematical functions that interrelate the variables.
Static Model
It is a type of model where time is not a significant variable.
It is a representation of system at a particular point in time i.e. time plays no role.
Dynamic Model
It is a type of model where time plays significant role and is a significant variable.
It is the representation of a system that evolves over time.
It describes the time-varying relationships.
Analytical Model
It is the one which is solved by using the deductive reasoning of mathematical
theory.
Mathematical Model
It is the one which is solved by using computational procedures.
Types of Simulation Model
Deterministic Simulation Model
Deterministic models have a known set of inputs, which result into unique set of
outputs.
None of the system property is random.
Stochastic Simulation Model
In stochastic model, there are one or more random input variables, which lead to
random outputs.
Continuous Simulation Model
Continuous simulation model represents system in which the state of the system
changes continuously with time.
Discrete Simulation Model
Discrete simulation model represents system in which the state of the system
changes at discrete points.
Deterministic vs Stochastic Simulation Model

Deterministic Model Stochastic Model

Deterministic models have known set of Stochastic models have one or more
inputs which result in unique set of random inputs which lead to random
outputs. outputs.
Doesn’t contain random elements. Contains random(probabilistic) elements.
Output is deterministic quantity. Output is random quantity.
The functional relationships that exists There are some uncertain functional
are known with certainty. relationships.
Examples: Simulation of chemical Examples: Queuing Models like arrival
reaction based on differential equations, time of customers at a restaurant, amount
simulation of digital circuits, etc. of time required to service a customer,
etc.
Static vs Dynamic Simulation Model
Static Model Dynamic Model

Model represents a system that doesn’t Model represents a system that evolves
evolve over time. over time.
Time doesn’t play important role. Model Time plays a vital role.
represents system at a particular point of
time.
Static model is more structural than Dynamic model is more behavioral than
behavioral. structural.
Static model is more rigid than dynamic Dynamic modeling is flexible as it can
modeling as it is a time independent view change with time.
of a system.
Example: Monte Carlo Simulation, Model Example: Model of a processor, etc.
that calculates mechanical stress in a
Continuous vs Discrete Simulation Model

Continuous Model Discrete Model

Model represents system in which the state Model represents system in which the state
of the system changes continuously with of the system changes at discrete points.
time.

The state variables change in a continuous The state variables change only at a
way. countable number of points in time.

Example: Model representing velocity of Example: Model of a system representing

fluid in a pipe or channels, etc. number of jobs in a queue, etc.
Steps in Simulation Study
1. Problem formation: The initial step involves defining the goals of the study and
determing what needs to be solved. The problem is further defined through objective
observations of the process to be studied
2. Model Conceptualization: This phase involves conceptualization of model which
involves establishing a reasonable model. Essential features of the real world system
are abstracted according to which an Assumed system is developed. From the Assumed
system a conceptual model is developed which includes
a more detailed specification of the system, important
entities, relationships which is further developed into
a logical model..
3. Data Collection: In this phase first the type of data to collect is determined
and collection of data for input analysis and validation is done.
4. Model Translation: The model is translated into programming language.
Choices range from general purpose languages such as C, C++, Fortran or
simulation programs such as Arena.
5. Verification and Validation: Verification is the process of ensuring that the
model behaves as intended. Validation is the process of determining whether the
model accurately represents the system or not. Verification is performed before
validation. Model verification answers for Did we build the model right? where as
validation answers for Did we build the right model?
6. Experimental Design: The alternatives that are to be simulated must be
determined. Factors such as number of simulations to run, length of each run,
type of output data are determined.
7. Simulation Run and Analysis: The simulation is now run and the output of the
simulation is collected and hence analyzed. The result is interpreted.
8. Documentation and Report: Documentation of the final model is prepared and the
result of the simulation is reported. There are two types of documentation.
9. Implementation: The output of the simulation is analyzed and if expected output is
achieved then finally the assumed system is implemented.
Figure: Flowchart For Steps In Simulation Study
Model Development Lifecycle
 Steps in Model Development Life Cycle
1. Define goals, objectives of study: The goals and objectives for which the model is
being developed should be identified and defined clearly.
2. Develop Conceptual Model: Once the goals and objectives are defined, the conceptual
model should be developed now. A conceptual model is a representation of a system,
made of the composition of concepts which are used to help people know, understand
or simulate a subject the model represents. During the development of conceptual
model, the main idea and concepts about the system for which the model is being
developed must be found.
3. Develop Specification of Model: This phase involves a more detailed specification of
the model. Collection of data, development of necessary algorithms are done in this
phase. Empirical data or probability distributions often used in this phase.
4. Develop Computational Model: A computational model is a mathematical
model in computational science that requires extensive computational resources to
study the behavior of complex system. It is the executable simulation model. The
specification model is developed into computational model in this phase.
5. Verify Model: This phase involves the verification of model. Verification is the
process of ensuring that the model behaves as intended. Model verification answers for
Did we build the model right?, Does the computational model match the specification
model?, etc.
6. Validate Model: This phase involves the validation of model. Validation is the
process of determining whether the model accurately represents the system or not.
Model validation answers for Did we build the right model?, Does the computational
model match the actual system?, etc.
Advantages and Disadvantages of Simulation
Main Advantages
Simulation helps to learn about real system, without having the system at all. It helps
to study the behavior of a system without building it.
New hardware designs, physical layouts, transportation systems and various systems
can be tested without committing resources for their acquisition.
Simulation Models are comparatively flexible and can be modified to accommodate
the changing environment to the real situation.
Simulation technique is easier to use and can be used for wide range of situations.
In systems like nuclear reactors where millions of events take place per second,
simulation can expand the time to required level.
Results are accurate in general, compared to analytical model.
Help to find un-expected phenomenon, behavior of the system.
Easy to perform ``What-If'' analysis.
Main Disadvantages
Expensive and difficult to build a simulation model. Model building requires special
training.
Expensive to conduct simulation.
Sometimes it is difficult to interpret the simulation results. Since most simulation
outputs are essentially random variables, it may be hard to determine whether an
observation is a result of system interrelations or randomness.
Simulation results may be time consuming.
Applications of Simulation

Manufacturing: Design analysis and optimization of production system, materials

management, capacity planning, layout planning, and performance evaluation, evaluation
of process quality.
Business: Market analysis, prediction of consumer behavior, and optimization of
marketing strategy and logistics, comparative evaluation of marketing campaigns.
Military: Testing of alternative combat strategies, air operations, sea operations,
simulated war exercises, practicing ordinance effectiveness, inventory management.
Healthcare applications: Applications such as planning of health services, expected
patient density, facilities requirement, hospital staffing , estimating the effectiveness of a
health care program.
Communication Applications: Applications such as network design, and optimization,
evaluating network reliability, manpower planning, sizing of message buffers.
Computer Applications: Can be applicable in fields such as designing hardware
configurations and operating system protocols, sharing networking, gaming.
Economic applications: Can be used in portfolio management, forecasting impact
of Govt. Policies and international market fluctuations on the economy. Budgeting
and forecasting market fluctuations.
Transportation applications: Design and testing of alternative transportation
policies, transportation networks-roads, railways, airways etc. Evaluation of
timetables, traffic planning.
Environment application: Solid waste management, performance evaluation of
environmental programs, evaluation of pollution control systems.
Biological applications: Such as population genetics and spread of epidemics.