Study Guide for Pages 153-210

CHAP1'ER 9: MONTE CARLO SIMULATION

Introduction .....................................................154

The four bulleted examples on page 155 are all physical models.
The models we will actually work with are all symbolic models (see p. 11).
Specifically, they are probabilistic symbolic models (see p. 119-20).

AT&T call processing, docking facility design, and GM Canada robotics are good examples of WHY to use Monte Carlo simulation before digging into HOW to do it.

Generating Random Variables .......................................159

Skip. We will do this in class in a way that's less abstract and hopefully less confusing.

Simulating with a Spreadsheet .......................................167

Skip

Simulating with Spreadsheet Add-ins .................................174

Skip

An Inventory Control Example: Foslins Housewares ....................182

Study pages 183-184 before class to make sure you understand the problem.
Skip p. 185-187. We will do this in class more simply.
Study "Recapitulation" p. 188-189.

Simulation of Foslins Model with More Realistic Demand Assumption .....189
Read the first two paragraphs and skip the rest; We will do this in class more simply.

Midwest Express: Airline Overbooking Model ..........................192

Skip'

Capacity Balancing ................................................196

Skip

Optimization Under Uncertainty ....................................201

Skip

Notes on Implementation ...........................................210

Postpone; we'll go over this in the next class.

Summary ....................................................... .212

This section serves two purposes: it reviews the parts of the chapter we studied and gives an overview of the parts we skipped,

Key Terms, Self-Test Exercises, Problems, cases................213

Read these as a review.  "How" is important, but only after you have thoroughly mastered "Why."

Pay special attention to problem 18; be sure to come to class knowing what the question is.