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Stochastic Modeling and Simulation

Course Number:



Alexandre Jacquillat,


Undergraduate Business


Operations Management

Course Description

This hands-on course on computer simulation of business, service, and manufacturing systems (that are subject to uncertainty or risk) takes the perspective of the consultant whose job is to analyze stochastic decision problems by building a simulation model and using it to understand the behavior of the system and explore the effects of alternative decisions. Two modeling methodologies will be presented: 1) Models, both static and dynamic, that can be implemented as mathematical expressions in a spreadsheet; and 2) discrete-event models that utilize the event scheduling formalism. @Risk, from Palisade Corporation, is the tool that will be used to demonstrate how to build and execute spreadsheet simulation and Arena, from Rockwell Software, is the tool that will be used to demonstrate how to build discrete-event simulation models for service and manufacturing applications. Upon completion of the course students will be able to carry out the entire process of designing the model, implementing it in the appropriate software, executing the simulation, collecting and analyzing output data, and using the results of the analysis to evaluate alternative decisions.


Lecture: 160min/wk