Many of the important concepts which business students must assimilate are taught with the aid of simulation exercises which take advantage of the merits of experiential learning. The principles of financial analysis and strategic management, for example, are often demonstrated using business simulations. In these simulations students make strategic decisions such as product price, advertising budget and financing strategy and follow the progress of their company in a competitive market.
One of the difficulties in presenting the study of discrete event simulation to business students is that, while they may learn the principles and techniques involved, they often have little feel for how significant a simulation study can be to the operational management of an organisation. In addition, model validation is often a superficial exercise because real system data must generally be presented rather than gathered. Until now no simulation games have existed to address this difficulty.
This paper describes a newly developed business simulation, based around a manufacturing company, where the production model is a separate discrete event simulation rather than a simple aggregation model. In this environment students use discrete event modelling techniques to analyse and improve the production efficiency of the company which they are managing within a competitive market. Students are generally enthusiastic and competitive in these business simulation exercises and so DIMSIM gives them a direct stake in the outcome, it allows them to determine the particular simulation study which is appropriate for their company and it enhances their understanding of the model validation process by leaving them free to gather, from their company's production reports and accounts, the data required.
Student responses to initial trials of the program have been quite positive.
