Simulation: A Management Planning Tool

Simulation, or the use of models, has been successfully applied to engineering problems for several years. The acceptance of simulation as a working tool by management planners has been mixed, at best. In fact, in comparison to the number of engineers who use simulation, management planners who make use of it are in the minority. During the past five years there have been several applications of simulation by management planners. However, the number of models that ended up in the tool kit of top management are few. This paper discusses the role of simulation in management planning at The Boeing Company, Seattle, Wash., and suggests some useful guidelines.