IDEAS home Printed from https://ideas.repec.org/a/inm/orited/v22y2022i3p147-159.html
   My bibliography  Save this article

Monte Carlo Enhancement via Simulation Decomposition: A “Must-Have” Inclusion for Many Disciplines

Author

Listed:
  • Mariia Kozlova

    (School of Business and Management, LUT University, 53850 Lappeenranta, Finland)

  • Julian Scott Yeomans

    (Operations Management and Information Systems Area, Schulich School of Business, York University, Toronto, Ontario M3J 1P3, Canada)

Abstract

Monte Carlo (MC) simulation is widely used in many different disciplines in order to analyze problems that involve uncertainty. Simulation decomposition has recently provided a simple, but powerful, advancement to the standard Monte Carlo approach. Its value for better informing decision making has been previously shown in the investment-analysis field. In this paper, we demonstrate that simulation decomposition can enhance problem analysis in a wide array of domains by applying it to three very different disciplines: geology, business, and environmental science. Further extensions to such disciplines as engineering, natural sciences, and social sciences are discussed. We propose that by incorporating simulation decomposition into pedagogical practices, we expect students to significantly advance their problem-understanding and problem-solving skills.

Suggested Citation

  • Mariia Kozlova & Julian Scott Yeomans, 2022. "Monte Carlo Enhancement via Simulation Decomposition: A “Must-Have” Inclusion for Many Disciplines," INFORMS Transactions on Education, INFORMS, vol. 22(3), pages 147-159, May.
    • Handle: RePEc:inm:orited:v:22:y:2022:i:3:p:147-159
    DOI: 10.1287/ited.2019.0240
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/ited.2019.0240
    Download Restriction: no
    File URL: https://libkey.io/10.1287/ited.2019.0240?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. M. Kozlova & M. Collan & P. Luukka, 2016. "Simulation Decomposition: New Approach For Better Simulation Analysis Of Multi-Variable Investment Projects," Fuzzy Economic Review, International Association for Fuzzy-set Management and Economy (SIGEF), vol. 21(2), pages 3-18, November.
    2. M. Kozlova & M. Collan & P. Luukka, 2016. "Simulation Decomposition: New Approach For Better Simulation Analysis Of Multi-Variable Investment Projects," Fuzzy Economic Review, International Association for Fuzzy-set Management and Economy (SIGEF), vol. 21(2), pages 3-18, November.
    3. Enrico Zio, 2013. "Monte Carlo Simulation: The Method," Springer Series in Reliability Engineering, in: The Monte Carlo Simulation Method for System Reliability and Risk Analysis, edition 127, chapter 0, pages 19-58, Springer.
    4. Enrico Zio, 2013. "The Monte Carlo Simulation Method for System Reliability and Risk Analysis," Springer Series in Reliability Engineering, Springer, edition 127, number 978-1-4471-4588-2, December.
    5. Enrico Zio, 2013. "System Reliability and Risk Analysis by Monte Carlo Simulation," Springer Series in Reliability Engineering, in: The Monte Carlo Simulation Method for System Reliability and Risk Analysis, edition 127, chapter 0, pages 59-81, Springer.
    6. Enrico Zio, 2013. "System Reliability and Risk Analysis," Springer Series in Reliability Engineering, in: The Monte Carlo Simulation Method for System Reliability and Risk Analysis, edition 127, chapter 0, pages 7-17, Springer.
    7. Ivan Deviatkin & Musharof Khan & Elizabeth Ernst & Mika Horttanainen, 2019. "Wooden and Plastic Pallets: A Review of Life Cycle Assessment (LCA) Studies," Sustainability, MDPI, vol. 11(20), pages 1-17, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Guowang Meng & Hongle Li & Bo Wu & Guangyang Liu & Huazheng Ye & Yiming Zuo, 2023. "Prediction of the Tunnel Collapse Probability Using SVR-Based Monte Carlo Simulation: A Case Study," Sustainability, MDPI, vol. 15(9), pages 1-21, April.
    2. Michael Saidani & Alissa Kendall & Bernard Yannou & Yann Leroy & François Cluzel, 2019. "Closing the loop on platinum from catalytic converters: Contributions from material flow analysis and circularity indicators," Post-Print hal-02094798, HAL.
    3. Michele Compare & Francesco Di Maio & Enrico Zio & Fausto Carlevaro & Sara Mattafirri, 2016. "Improving scheduled maintenance by missing data reconstruction: A double-loop Monte Carlo approach," Journal of Risk and Reliability, , vol. 230(5), pages 502-511, October.
    4. Chiacchio, Ferdinando & D’Urso, Diego & Famoso, Fabio & Brusca, Sebastian & Aizpurua, Jose Ignacio & Catterson, Victoria M., 2018. "On the use of dynamic reliability for an accurate modelling of renewable power plants," Energy, Elsevier, vol. 151(C), pages 605-621.
    5. Salomon, Julian & Winnewisser, Niklas & Wei, Pengfei & Broggi, Matteo & Beer, Michael, 2021. "Efficient reliability analysis of complex systems in consideration of imprecision," Reliability Engineering and System Safety, Elsevier, vol. 216(C).
    6. Di Maio, Francesco & Pettorossi, Chiara & Zio, Enrico, 2023. "Entropy-driven Monte Carlo simulation method for approximating the survival signature of complex infrastructures," Reliability Engineering and System Safety, Elsevier, vol. 231(C).
    7. Wang, Fan & Li, Heng, 2018. "System reliability under prescribed marginals and correlations: Are we correct about the effect of correlations?," Reliability Engineering and System Safety, Elsevier, vol. 173(C), pages 94-104.
    8. Tito G. Amaral & Vitor Fernão Pires & Armando Cordeiro & Daniel Foito & João F. Martins & Julia Yamnenko & Tetyana Tereschenko & Liudmyla Laikova & Ihor Fedin, 2023. "Incipient Fault Diagnosis of a Grid-Connected T-Type Multilevel Inverter Using Multilayer Perceptron and Walsh Transform," Energies, MDPI, vol. 16(6), pages 1-18, March.
    9. Zhang, Hanxiao & Sun, Muxia & Li, Yan-Fu, 2022. "Reliability–redundancy allocation problem in multi-state flow network: Minimal cut-based approximation scheme," Reliability Engineering and System Safety, Elsevier, vol. 225(C).
    10. Tosoni, E. & Salo, A. & Govaerts, J. & Zio, E., 2019. "Comprehensiveness of scenarios in the safety assessment of nuclear waste repositories," Reliability Engineering and System Safety, Elsevier, vol. 188(C), pages 561-573.
    11. Penttinen, Jussi-Pekka & Niemi, Arto & Gutleber, Johannes & Koskinen, Kari T. & Coatanéa, Eric & Laitinen, Jouko, 2019. "An open modelling approach for availability and reliability of systems," Reliability Engineering and System Safety, Elsevier, vol. 183(C), pages 387-399.
    12. Rocco, Claudio M. & Moronta, José & Ramirez-Marquez, José E. & Barker, Kash, 2017. "Effects of multi-state links in network community detection," Reliability Engineering and System Safety, Elsevier, vol. 163(C), pages 46-56.
    13. Compare, Michele & Bellani, Luca & Zio, Enrico, 2019. "Optimal allocation of prognostics and health management capabilities to improve the reliability of a power transmission network," Reliability Engineering and System Safety, Elsevier, vol. 184(C), pages 164-180.
    14. Babykina, Génia & Brînzei, Nicolae & Aubry, Jean-François & Deleuze, Gilles, 2016. "Modeling and simulation of a controlled steam generator in the context of dynamic reliability using a Stochastic Hybrid Automaton," Reliability Engineering and System Safety, Elsevier, vol. 152(C), pages 115-136.
    15. Compare, Michele & Bellani, Luca & Zio, Enrico, 2017. "Reliability model of a component equipped with PHM capabilities," Reliability Engineering and System Safety, Elsevier, vol. 168(C), pages 4-11.
    16. Gascard, Eric & Simeu-Abazi, Zineb, 2018. "Quantitative Analysis of Dynamic Fault Trees by means of Monte Carlo Simulations: Event-Driven Simulation Approach," Reliability Engineering and System Safety, Elsevier, vol. 180(C), pages 487-504.
    17. Ferdinando Chiacchio & Fabio Famoso & Diego D’Urso & Sebastian Brusca & Jose Ignacio Aizpurua & Luca Cedola, 2018. "Dynamic Performance Evaluation of Photovoltaic Power Plant by Stochastic Hybrid Fault Tree Automaton Model," Energies, MDPI, vol. 11(2), pages 1-22, January.
    18. Shiyu Chen & Wei Wang & Enrico Zio, 2021. "A Simulation-Based Multi-Objective Optimization Framework for the Production Planning in Energy Supply Chains," Energies, MDPI, vol. 14(9), pages 1-27, May.
    19. Kim, Hyeonmin & Kim, Jung Taek & Heo, Gyunyoung, 2018. "Failure rate updates using condition-based prognostics in probabilistic safety assessments," Reliability Engineering and System Safety, Elsevier, vol. 175(C), pages 225-233.
    20. Kong Fah Tee & Andrew Utomi Ebenuwa, 2019. "Combination of line sampling and important sampling for reliability assessment of buried pipelines," Journal of Risk and Reliability, , vol. 233(2), pages 139-150, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orited:v:22:y:2022:i:3:p:147-159. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.