2Discrete-event simulation

Mathematical modeling and computer simulation are very powerful techniques, but they have their pitfalls and should be used cautiously. The subject is wide and multifaceted and certainly cannot be covered in detail here. Rather, this chapter is an overview presenting some important principles and a few applications. In the first part, we give an introduction to discrete-event simulation, an outline of the phases of a typical simulation project, and a brief discussion of implementation issues. In the second part, a mathematical toolbox including some notions of probability, statistics, Monte Carlo simulation, queuing theory, and inventory control is presented. Finally, in the third part, three applications are given: a hybrid production management system, a flow manufacturing study, and a dynamic traffic management system.