Decision Taking and Decision Making through Applied Simulation Models

The purpose of thispaper, in addition to the study of decision making process in management, is to introduce and explain its application in the process of analysis, measurement, and prediction of the changes and its effects on other variables such as expense, quality and time. Project managers make lots of decisions in the beginning and during the process of production so as to make sure of high quality in performance. The manager’s personal experiences seem not to be enough. Therefore, the managers use different methods of modeling and simulation to make sure of work standards. Applied simulation is a technical process which makes the display of processes, resources, goods and services possible in the computer dynamic model. In fact, computer simulation is a powerful device for supporting management decision and reducing risk in decision process by means of evaluation and analysis of different strategies. In this paper, first, the characteristics of simulation technique are explained and then the method of its application is shown. The application of the presented techniques can reduce the expenses and the risk of the right decision in the organization and improve the processes and outcomes in the organization. In the next step, the techniques of computer simulation will be explained.