# 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.