ABSTRACT
The first step in conducting a significant simulation project is to ensure that adequate attention has been directed toward understanding what is to be accomplished by performing the study. These activities are known as the problem formulation process and consist of:
• A formal problem statement • Orientation of the system • Establishment of specific project objectives
The importance of directing adequate attention toward the problem formulation process cannot be overemphasized. During this period, the simulation practitioner can firmly establish the practicality of using simulation to analyze the system. It may turn out that the system is deterministic or otherwise will not lend itself to simulation analysis-type approaches. If either of these situations exists, the practitioners can save themselves a significant amount of work and embarrassment early in the process. In the more favorable event that the system lends itself to simulation analysis, the practitioner should begin by developing a problem statement.
