Corporate simulation models: a survey

Abstract

Within a period of less than five years, computer- simulation techniques have penetrated corporations in the United States, Canada, and Europe at the highest possible level. This paper summarizes the results of a survey of 346 corporations, most of which are either using, developing, or planning to develop some form of corporate simulation model. Among the questions addressed by the survey for which empirical answers have been sought are: Who is actually using corporate simulation models? Why are they being used? What resources are required to develop them? What techniques are employed? How much do they cost? What are the benefits to be derived from their use?

The paper concludes with a series of specific recom mendations for improving the effectiveness of cor porate simulation models. First, corporate models should be made more user-oriented. Second, more attention needs to be given to the production acti vities of firms. Third, the possibility of inte grating optimization models into corporate models needs to be explored further. Fourth, financial, marketing, and production models should be linked together. Fifth, the use of models to simulate the global environment of corporations should be con sidered. Sixth, greater emphasis should be placed on the "politics" of corporate model building.