This paper provides a survey of simulation in supply chain management.It reviews four types of simulation, namely spreadsheet simulation, system dynamics, discreteevent simulation, and business games.Which simulation type should be applied, depends on the type of managerial question to be...

I start this contribution with an overview of my personal involvement—as an Operations Research consultant—in several engineering case-studies that may raise ethical questions; these case studies employ simulation models. Next, I present an overview of the recent literature on ethical issues...

Sensitivity analysis may serve validation, optimization, and risk analysis of simulation models.This review surveys classic and modern designs for experiments with simulation models.Classic designs were developed for real, non-simulated systems in agriculture, engineering, etc.These designs...

Managers wish to verify that a particular engineering design meets their require- ments. This design's future environment will differ from the environment assumed during the design. Therefore it is crucial to determine which variations in the envi- ronment may make this design unacceptable. The...

Whereas Operations Research has always paid much attention to optimization, practitioners judge the robustness of the 'optimum' solution to be of greater importance.Therefore this paper proposes a practical methodology that is a stagewise combination of the following four proven techniques: (1)...

This paper investigates the short-term robustness of production planning and control systems. This robustness is defined here as the systems ability to maintain short-term service probabilities (i.e., the probability that the fill rate remains within a prespecified range), in a variety of...

For decision makers the variability in the net present value (NPV) of an investment project is an indication of the project's risk. So-called risk analysis is one way to estimate this variability. However, risk analysis requires knowledge about the stochastic character of the inputs. For large,...

Many researchers use GARCH models to generate volatility forecasts. We show, however, that such forecasts are too variable. To correct for this, we extend the GARCH model by distinguishing two regimes with different volatility levels. GARCH effects are allowed within each regime, so that our...

Most economists intuitively consider purchasing power parity (PPP) to be true. Nevertheless, quite surprisingly, the empirical literature is not very supportive for PPP. In this paper, however, we find evidence in favor of PPP using a new test. The test is embedded in a Markov regime-switching...