Minor Test 1
Due 23 September 2025
, SIE3601 Minor Test 5
Question 1
Using practical examples, describe five application areas of simulation.
Answer:
Simulation is a versatile analytical tool that enables organizations to study complex
systems without disrupting real-world operations. It provides a platform to model un-
certainty, test alternatives, and optimize performance. Five prominent application areas
are outlined below:
1. Manufacturing Systems Simulation is extensively used to evaluate production
line efficiency, machine utilization, and process bottlenecks. Example: Automotive
manufacturers employ discrete-event simulation to test assembly line layouts and
scheduling policies before implementation. Critical Insight: By reducing downtime
and avoiding costly physical trials, simulation supports continuous improvement in
lean manufacturing environments.
2. Healthcare Operations Hospitals rely on simulation to assess patient flows, bed
management, and staff allocation. Example: Emergency departments model peak-
hour arrivals to determine staffing requirements and minimize waiting times. Criti-
cal Insight: This ensures optimal use of scarce healthcare resources while safeguard-
ing patient safety.
3. Transportation and Logistics Simulation assists in planning traffic systems,
airports, and logistics networks where variability in demand is high. Example:
Airports use passenger flow simulations to reduce congestion during check-in and
boarding. Critical Insight: The ability to forecast the impact of operational adjust-
ments makes simulation indispensable in managing transport efficiency.
4. Financial Services Banking institutions simulate customer arrivals and transac-
tion times to optimize ATM placement and staffing. Example: Banks simulate
peak-hour withdrawals to ensure machines are adequately stocked with cash. Crit-
ical Insight: By predicting usage patterns, banks reduce customer dissatisfaction
and operational risk.
1