Your Simulation Questions Answered

Mike Allen's picture

So, you’re thinking of using simulation within your organization. Is simulation worthwhile? What are the pros & cons? Should you recruit an in-house team or outsource? What skills should your team possess? Which software should you purchase? How should you conduct simulation studies? Are there any other gotchas?

Good questions, all. In this article, I’ll attempt to cover each as briefly as possible. If you would like more detailed explanations on any point, feel free to call me on +1 (313) 451-4001 and I’ll do my best to assist.

Simulation Quality Control

Mike Allen's picture

How do you know if the results of a simulation analysis are accurate and reliable?

This is an important and fundamental question. If a simulation produces invalid results, yet the client accepts and acts upon them, then they’re heading into a world of pain. Just as bad is the situation in which the results are valid, but are distrusted by the client and so are disregarded. In both cases, the outcomes can be catastrophic.

Clearly, the accuracy and reliability of a simulation model and the client's trust in its results are key factors. As a simulation expert, it’s my job to realize both—if I achieve just one and not the other, or neither, then my client and I are both going to be in trouble. So how do I address this?

UPDATE 4/1/2016: I have clarified and updated some elements of this guide.

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