Advantages and Disadvantages of Simulation

Advantage: The main merit of the simulation technique is its ability to lend itself to difficulties that are cumbersome, or not possible to handle mathematically by using analytical methods. Not only this, the technique permits the analyst to experiment with the system nature without subjecting it to the hazard that would be inherent in experimenting along the real system. It also compresses time to allow the manager to visualize the long-term effects in a rapid way. Besides, simulation is frequently used to test proposed analytic solutions as well.

Disadvantage: this does not represent a methodology for derivation of best solutions to the given problems. This approach is designed just to provide characterisation of the performance of the system in question for a given set of inputs. Furthermore, the simulation approach is not accurate in the sense that it yields just estimates which are subject to sampling error. Obviously, the sampling error may be reduced by enhancing the sample size.

Another drawback is that it cannot prove economical, as it needs lot of efforts to develop a appropriate model.

This is a tool of solution evaluation and does not produce problem solution. Therefore the analyst has to build up the proposed solution; then simulation may be used to test the relative desirability of those solutions.