Supporting Simulation-Based Decision Making With the Use of AHP Analysis

Full Citation
Rabelo, L. Eskandari, H., Shalan, T., Helal, M. 2005. Supporting simulation-based decision making with the use of AHP analysis. Winter Simulation Conference, WSC’05, December 4-7, Orlando, FL.

Abstract
Traditionally decisions made based on simulation models have been the outcomes of complicated statistical analyses and having confidence in them is a subjective matter. Hybrid simulation offers an improved approach to better model real life systems and increase confidence in their outcomes. In particular hybrid discrete-continuous simulation has the potentials to reduce the impact of statistics in building models in addition to other significant benefits. In this paper we use hybrid models of discrete-event simulation and system dynamics to analyze global supply chain decisions. And to increase the decision makers’ confidence as well as to make use of their experiences we apply the Analytic Hierarchical Process (AHP) analysis to the simulation results in order to reach better decisions. We describe the benefits of the use of the hybrid simulation and the added advantages of using AHP in order to maximize shareholder value.