Monte Carlo Simulation

Project in action

Quantitative Risk Analysis for Project Management

In this article we are going to discuss using Monte Carlo simulation to perform quantitative risk analysis for project management.  The three primary risks to a project are schedule, financial, and technical.  Two of these three risks readily lend themselves to be quantified with Monte Carlo simulation: schedule risk and financial risk. If you’re unfamiliar …

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Input Correlation Methods in Simulation Master

In this article, we will discuss input correlation methods that can be used with Simulation Master.  In a previous article, we discussed why it is important to account for correlation among input random variables when performing Monte Carlo simulation. There are two input correlation methods available in Simulation Master: Rank order correlation Bivariate copulas Rank …

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Monte Carlo simulation in purchasing - components

Using Monte Carlo Simulation for Purchasing Decisions

Using Monte Carlo simulation for purchasing decisions can allow for overall cost reduction by selecting optimum order quantities.  In this article we will explore how to use simulation to minimize the total cost of a purchased component. When using purchased components, the purchase price is only part of the total cost.  Carrying cost also should …

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