The economics of simulation

  • Authors:
  • Paul Gray

  • Affiliations:
  • -

  • Venue:
  • WSC '76 Proceedings of the 76 Bicentennial conference on Winter simulation
  • Year:
  • 1976

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Abstract

This paper presents a framework for decision making about simulations before committing resources. The viewpoint is that of a manager who must decide whether to solve a problem by simulation or by some other means. A decision-analysis type model is introduced to allow the manager to determine the minimum cost method of simulation within the operating and policy constraints of his organization. Two case examples using the methodology are presented.