Advantages and Disadvantages of Simulation

Advantages of Simulation

  1. Solve cumbersome problems

The main advantage of simulation technique is its ability to solve the most difficult problems which are impossible to handle mathematically using quantitative methods. Many important managerial decision problems are too intricate to be solved by mathematical programming and experimentation with the actual system, even if possible, is too costly and risky. Simulation offers by allowing experimentation with model of the system without interfering with the real system. Simulation is thus often a bypass for complex mathematical analysis.

  1. Foresee Difficulties

Through simulation management can foresee the difficulties and bottlenecks which may come up due to the introduction of new machines, equipment or process. It, thus eliminates the need of costly trial and error methods of trying out the new concept on real methods and equipment.

  1. Study the long term effect

It enables the manager to visualize he long term effects in a quick manner.

  1. Modification

Simulation models are comparatively flexible and can be modified to accommodate the changing environments of the real situation.

  1. Time Saving

All results can be obtained with one model only. For example, the effects of ordering consumer behavior or other policies of many years can be obtained by  simulation in a short time.

  1. No interference

Simulation model never interferes with the real world system. It may be too disruptive because experiments are done with the model and not in the system itself. So simulation do not interfere with the real world system.

  1. To study Log term effect

It enables managers to visualize the long term effects in a quick manner.

  1. It can be used for training purposes

Simulation has advantageously been used for training the operating and managerial staff in the operation of complex plans. It is always beneficial to train people on simulated models before putting into their hands the real system.

Disadvantages of Simulation

  1. Does not produce optimum results

When the model deals with uncertainties, the results of simulation are only reliable approximations subject to statistical errors.

  1. Expensive

Developing a simulation model can be very expensive because it is long and complicated process to develop a model. Sometimes, it may take years to develop a model. Hence huge expenditure are involved.

  1. Not precise

Simulation is not precise and it does not yield an answer but provide a set of the system in different conditions.

  1. Quantification of the variables is another difficulty

In a number of situations, it is not possible to quantify all the variables that affect the behavior of the system.

  1. Non- transferrable Solution

Each solution model is unique and its solution and inferences cannot be transferable to other problems.

  1. Adhoc

Each application of simulation is adhoc to a great extent, which indicates that simulation does not require standard probability distribution