SIMULATION APPLICATIONS IN BUSINESS
MS 4323 (Fall 2000)
Instructor: Dr. Kefeng Xu
Time/Room: Section 001 (MW 700-815PM) BB3.02.18
Office: BB 4.04.18
Phone: (210) 458-5388
E-mail:
Homepage: http://business.utsa.edu/faculty/kxu
Office Hours: MW 3:15PM-4:45PM and by appointment
REQUIRED TEXTS AND COURSE HANDOUTS:
1. Simulation Using Promodel by Charles Harrell, Birman K. Ghosh, Royce Bowden. CD-ROM (2000), McGraw-Hill.
(Note: ProModel Student Package CD is included in the book. For more information about ProModel, you could also check the ProModel Corporation webpage at http://www.promodel.com/. Call this textbook as T1 below.)
2. ProModel Training Slides (noted as T2 below) in the form of Powerpoint files and regular lecture notes can be downloaded from my website. There might be some miscellaneous handouts (noted as T3 below) available outside my office door for you to copy
COURSE OBJECTIVES:
This course is intended to extend business majors' knowledge and expertise with one of the most widely used management decision support tools--simulation modeling. This course assumes prior knowledge and work with computers and basic knowledge of management science as MS 3033 is a prerequisite to this course. A solid understanding of basic statistics is also essential in this course. A general simulation software package, ProModel, will be utilized to facilitate the learning process. This will give you a first-hand experience with simulating a real world situation for better decision making.
Simulation is a popular technique for the creation of models of real systems in order to make more effective decisions. Examples of such systems include factories, airports, banks, hospitals, clinics, ocean terminals, distribution centers and warehouses, information systems, emergency response systems, to name just a few. It would be rash to design a new airport or change the production processes in a major factory without first doing a simulation model. More than 89% of Fortune 500 firms use simulation and have for a long time.
Students will gain basic literacy in discrete-event simulation by learning simulation concepts and the basics of ProModel (or its close cousins, MedModel & ServiceModel, depending on the preference of individual students), one of the most popular simulation packages for the modeling of systems common to business. ProModel provides an interactive graphical environment for building simulation models mimicking the real world operating process. It has an animation capability and extensive online manual. These features considerably ease the students’ learning process, and allow them to focus more on simulation concepts, principles and applications. In addition, by looking at some successful applications of simulation, students will be introduced to modeling methodologies and learn how simulation modeling can enhance business process design. A small final modeling project will bring satisfaction and a sense of closure.
This course should be taken by the following types of people:
1. Those interested in modeling and computers for problem solving;
2. those interested in operations management, either in an industrial setting or in service industries such as government, hospitals, logistics, the restaurant industry, etc.;
3. those interested in decision support systems or MIS;
4. those interested in a career in operations research/management science. Simulation has always been the most used technique by management scientists after basic statistics. For people in this category, this course is only a starting point.
STUDENT REQUIREMENTS:
MS 3033 is the prior requirements to taking this course. Some fundamental knowledge of probability and statistics (such as those in MS 3313 or other similar courses) is essential. No strong computer experience is assumed, although some operational exposure to microcomputers (through spreadsheets, word processors, data bases, e-mail, etc...) and to computer programming would have some value. ProModel is an advanced graphical simulation system with an easy-to-use graphical user interface.
You do not have to own a microcomputer as there are many microcomputers available for student use around campus (e.g. computer labs). A LAN version of ProModel (and ServiceModel and MedModel) has been installed in the business school’s Advanced Project Lab. In the textbook you purchase from bookstore, you will find a CD which is a student version of the ProModel Software to install in your own PC. This is a very good packaged deal with the manuals required in the course—see texts required above. You are expected to demonstrate mastery of the course materials through various exercises including examinations, homework assignments, and a final group project.
COURSE FORMAT:
Lectures, discussions, and labs will be used throughout the course. Students are responsible for all materials presented in class and outside assignments. Assignment due date will be clearly marked on the assignment handout sheets to be distributed. Late assignments are discounted 20% for each day late and will not be accepted after 4 days of the original due date, unless arrangements are made with me prior to the start of class. All assignments done outside of class will be graded on a content and presentation basis, i.e., spelling, punctuation and grammar. The computer lab is at your disposal so there is little excuse for 'typos'. All outside assignments must be word-processed. No handwritten work, except complicated formulae and some graphs, will be accepted.
GROUP PROJECT:
A simple but practical project is a testing ground for the exciting tool just acquired in this class. To facilitate cooperative learning while minimizing the chance of “free ride” (not sharing the proper workload in the group), students are expected to form groups of (at most) 3 persons around week 3 to plan the project, determine the problem scope, collect necessary data, formulate, test and verify the simulation model, apply the model to solve the problem. Only when you are determined to undertake a large, complex project you could form a group of more than 3 with the permission of the instructor. You will demonstrate your knowledge of simulation by correctly executing the project in a scientific fashion and briefly present the results to the class at the end of the semester. A managerial project report with no more than 15 pages text for each group is due in the last class of the semester.
The grading of the project is 80% based on the report, while 20% based on the presentation. Each member of the group usually gets the same grade, unless some “free ride” is reported on particular member by the end of the last class. In this case, a peer-evaluation will be adopted to determine the distribution of grade among group members.
GROUP PROJECT PRESENTATIONS:
Being able to confidently present material in front of an audience is a vital skill needed in the business arena. By "confidently", I mean that the presentation is well-prepared, organized and clearly thought-out in what should be said and in how it is said.
· The presentation should begin with an overview sentence or two about the topic to be discussed, a brief outline of what will be discussed in a realistic order, coverage of the major points as mentioned in the outline, and ending with a brief summary of a sentence or two of what was said and why it is important for us as managers.
· A one-page outline or presentation summary is also customary (distributed to all audience) so that all participants are included in what is being discussed.
· A copy of the project presentation slides should be made available to the instructor at the time of the presentation.
· As in any presentation, there are time constraints that all managers must be held accountable for. Tentatively each group is allowed 30 minutes to present the project.
· Part of any presentation includes appearance and business attire is expected.
· Address the audience clearly. Don't race through your presentation just to "get it over with".
This is a learning experience and you will receive feedback, using the evaluation form attached. It is hoped that future presentations will be improved upon given the feedback you receive.
EXAMINATIONS:
There will be one midterm and one final exams during the course. The exam will include short-answer, model and/or essay questions. A doctor's excuse is necessary for a make-up exam. Make-up exams are not scheduled for non-approved absences. If you will be unable to make the exam for the medical or other emergency reasons, please call me at the office and let me know PRIOR to the start of the exam. There is an answering machine at the above number if I have already left for class. It is your responsibility to notify me, not for me to guess. If I have to guess - no make up will be given.
LAB HOURS
Through some special arrangements, most of our regular sessions are to be conducted in our Business Computer Classroom (BB 3.02.18) for lectures and to learn and use ProModel (alternatively ServiceModel and MedModel, depending on individual’s preference, though instructions and discussions will be focused on ProModel). Please note that these sessions are marked on the tentative class schedule in the next page.
ACADEMIC DISHONESTY AND CLASSROOM CONDUCT:
Academic dishonesty will not be tolerated. Such matters will be subject to disciplinary actions. Assignments are expected to be completed independently, depending on whether they are group assignment or individual assignment. In the case of group assignment or project, only members of the same group should cooperate on the project.
All students are expected to exercise self-discipline and a respect for the rights of other at all times. Behavioral disruptions that interfere with the business of the classroom or with an individual’s ability to learn may be referred to the Office of Student Judicial Affairs in accordance with Section 202 of the Student Code of Conduct.
TENTATIVE COURSE GRADING*:
Homework Assignments 20%
Midterm Exam 25%
Final Exam 30%
Group Project 25%
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Total: 100%
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*Note: The instructor reserves the right to modify the above grading structure.
Tentative Course Schedule:
*Note: Those “bold” Lab dates below indicate that students are actively building simulation models along with the instructor in the computer classroom.
Week / Date / Topic / Pre-class Readings/Special Note(T1—text by Harrell et al, 2000,
T2—ProModel Training Slides+
T3—Instructor’s handouts)
1 / 8/28 / Introduction & course overview / Ch.1 of T1.
8/30 / Overall Description of Simulation / Ch. 1+2 of T1.
2 / 9/4 / (No class: Labor Day Holiday)
9/6 / Lab: Simulation languages-Introduction to ProModel / File A of T2; Labs 1+2 of T1.
3 / 9/11 / Overall Description of Simulation;
Elements of simulation project / Ch. 3+4 of T1.
9/13 / Lab: Introduction to ProModel /
File A of T2, Lab 3 of T1.
Form a project group of 3 (or less) and inform the instructor4 / 9/18 /
Elements of simulation project
/ Ch. 4 of T1.9/20 /
Lab: Model managing; Input Analysis
/ File B of T2; Lab 4 of T1.5 / 9/25 /
Review of basic probability & statistics
/ Part 1 of T3.9/27 /
Lab: Model building basics
/ File B of T2; Ch. 6 and Lab 6 of T1.6 / 10/2 /
Review of basic statistics;
Data collection and input analysis
/ Part 1 of T3.10/4 / Lab: Model building basics / File B of T2; Ch. 6 of T1.
7 / 10/9 / Data input analysis / Ch. 5 of T1.
10/11 /
Lab: Advanced model building
/ File C of T2.8 / 10/16 / Data input analysis / Ch. 5 and Lab 5 of T1.
10/18 /
Lab: Advanced model building
/ File C of T2.9 / 10/23 /
Midterm Exam
10/25 /Lab: Advanced model building
/ File C of T2; Lab 7 of T1.10 / 10/30 / Model verification & validation / Ch. 7 of T1.
11/1 / Lab: Verification in ProModel / File D of T2; Lab 7 of T1.
11 / 11/6 / Output Analysis / Ch. 8 of T1.
11/8 /
Lab: ProModel output analysis
/ File D of T2; Lab 8 of T1.12 / 11/13 / Model experimentation & optim. / Ch. 9 of T1.
11/15 /
Lab: Optimization in ProModel
/ Other Files of T2 (TBA); Lab 9 of T1.13 / 11/20 / Model experimentation & optim. / Ch. 10 of T1.
11/22 / Lab: Examples of applications / Other Files of T2 (TBA); Lab 10 of T1.
14 / 11/27 / Modeling service systems;
Implementation of simulation results. / Ch. 13 of T1; Part II of T3.
11/29 / Project presentations
15 / 12/4 / Project presentations
12/6 / Course review
12/13 /
Final Exam
/ 8:00pm-10:45pm, Wednesday+Note: The readings of T2 should be supplemented by the ProModel User Manual for those who own it whenever questions arise. The electronic version (printable) of the manual should also be available in the CD you purchase.
Do's and Don'ts in Presentations
Don'ts:
· Don't get bogged down in details without first presenting the "big picture".
· Don't spend a lot of the time looking back at the screen - look at your audience, all of your audience.
· Don't put on a slide unless you are going to refer directly to it.
· Don't crowd your slides with information.
· Don't lift slides from the screen before the class has had a chance to read the information.
· Don't use slides with print that is too small for everyone in the class to read.