What are the advantages and disadvantages of simulation models?

What will be an ideal response?

Advantages:
• It can be used to analyze large and complex real-world situations that cannot be solved by conventional operations management models.
• Simulation allows for inclusion of real-world complications that most OM models cannot permit.
• "Time compression" is possible with simulation.
• Simulation allows "what if __?" types of questions.
• Simulations do not interfere with the real-world system under study.

Disadvantages:
• Good simulation models can take a long time to develop.
• Simulation does not generate optimal solutions.
• Managers must generate all the conditions and constraints for the solutions that they want to examine.
• Each simulation model is unique. Its solutions and inferences are not usually transferable to other problems.