The Economics of Simulation,

Abstract

This paper presents the methodology and preliminary results of a study of the economics of stochastic, discrete-event simulations. The point of view taken is that of the manager who, faced with a large problem, must ask two interrelated questions: Should I use simulation as my method of solution; and If I simulate, how should I do so? It has been our observation that for large-scale simulations--which are arbitrarily defined as those which require more than 2 man-years for development or run for more than 15 minutes on an IBM 360/50--the initial decision is often made quite casually. The thesis of this paper is that conduct of a cost-benefit analysis of the simulation aids in the decision-making process. (Author)

Document Details

Document Type
Technical Report
Publication Date
Jan 01, 1973
Accession Number
ADP000611

Entities

People

  • Donovan Young
  • Paul Gray
  • Ronald E. Rezek

Tags

Communities of Interest

  • Materials and Manufacturing Processes

DTIC Thesaurus Topics

  • Army Operations
  • Cost Benefit Analysis
  • Costs
  • Economics
  • Observation
  • Operations Research
  • Simulations

Readers

  • Computational Modeling and Simulation
  • Economics