ABSTRACT

Abstract ............................................................................................................ 102 4.1 Modeling and Simulation Principles ....................................................... 102 4.2 Models..................................................................................................... 105 4.3 Simulation ............................................................................................... 108 4.4 Conclusion .............................................................................................. 128 Keywords ......................................................................................................... 129 References ........................................................................................................ 129

A group of interacting, interrelated, or interdependent elements form a system. The first step in studying a system is building a model. A model is a representation of an object, a system, or an idea in some form other than that of the entity itself. To build a model, important factors that act on the system must be included and unimportant factors that only make the model harder to build, understand, and solve should be omitted. Proper balance between accuracy and complexity must be achieved and a model must be both. Simulation is a numerical technique for conducting experiments on a digital computer, which involves certain types of mathematical and logical models that describes the behavior of a business or economic system (or some component thereof) over extended periods of real time.