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There are many types of simulations - for example a flight simulator or someone who
pretends to be ill when they aren’t. Often we don’t recognise a simulation, though. Few people would consider the car crash test to be a simulation. And even fewer people would say they run a simulation when they consider two different job offers in their mind. To simulate means to “pretend as if” meaning that you don’t do something for real but work with a model. The flight simulator is such a model.
But also a construct we use to evaluate such decisions can be considered a simulation. Often these mental simulations happen automatically. Especially when it comes to fast and simple day-to-day decisions. Other decisions are more serious.
As a start-up company, do I invest 200.000 € in advertisement or two employees?
How do I produce? On the conveyor belt or in a manufacture?
Due to the complexity and dynamic of such scenarios people are easily overwhelmed with these kind of decisions. Therefore it is advisable to replace mental simulations with computer simulation as computers work more precisely, faster and more persistent. They can do as many “what-if-analyses” as required for a good decision.
Simple computer simulations can be done with table calculation software. For more
complex ones there are special methods like “system dynamics”, the discrete event
simulation or the agent based simulation.
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