Name
Abstract | ||
|---|---|---|
This paper summarizes new analytical and empirical results for the economic approach to simulation selection problems that we introduced two years ago. The approach seeks to help managers to maximize the expected net present value (NPV) of system design decisions that are informed by simulation. It considers the time value of money, the cost of simulation sampling, and the time and cost of developing simulation tools. This economic approach to decision making with simulation is therefore an alternative to the statistical guarantees or probabilistic convergence results of other commonly-used approaches to simulation optimization. Empirical results are promising. This paper also retracts a claim that was made regarding the existence of Gittins¿ indices for these problems - their existence remains an open question. |
Year | DOI | Venue |
|---|---|---|
2008 | 10.1109/WSC.2008.4736081 | Winter Simulation Conference |
Keywords | Field | DocType |
empirical result,probabilistic convergence result,commonly-used approach,simulation sampling,economic approach,simulation tool,present value,open question,time value,selection problem,operations research,economics,system design,net present value,statistical analysis | Convergence (routing),Computer science,Simulation,Systems design,Operations research,Time value of money,Sampling (statistics),Probabilistic logic,Net present value,Statistical analysis | Conference |
ISBN | Citations | PageRank |
978-1-4244-2708-6 | 0 | 0.34 |
References | Authors | |
5 | 2 | |
Name | Order | Citations | PageRank |
|---|---|---|---|
| Stephen E. Chick | 1 | 1127 | 152.40 |
| Noah Gans | 2 | 613 | 66.60 |