THE USE OF SIMULATION MODEL IN GINSOLVING THE PROBLEMS OF ECONOMIC OPTIMIZATION

Keywords: simulation modeling, covariance, correlation, model verification, validation, determination of the degree of adequacy

Abstract

The present article reveals the possibilities of applying simulation modeling in the economic systems analysis. This type of modelling aims at establishing the features and characteristics of different objects, as well as the practical use of the findings obtained in solving applied tasks. The simulation modeling received an important impetus to its further development in the last decades due to computer science progress. The simulation modeling represents a description of behaviour dynamics of the system explored. The main feature of simulation modeling is the fact that every execution of the machine gives information that is valid only under certain entry parameters given before the execution. In other words, the results of the simulation process execution will depend on the specific values of a series of parameters. The main task of this study was exploring the use of simulation models in economic processes. The results obtained during the imitation studies are able to provide data that will help to make the right decision under different scenarios of the situation development. At the same time, simulation modeling has a number of shortcomings, among which the difficulty of perception due to mathematical complexity, the difficulty of development and some inaccuracy of the results obtained. In economic analysis it is important to establish cause-effect relationships, as well as the characteristics of the mutual influence of the parameters on each other. The type of simulation modeling such as «system dynamics» allows us to establish the nature and essence of the processes occurring in the system explored. Simulation modeling is a research method that allows you to study the features and properties of complex systems. The use of simulation modeling in management activities makes it possible to analyze the possible development of the situation in certain initial conditions and helps to make the right decision.This method of analysis is widely used in various sectors of the economy, including the management of human resources of enterprises. For example, it allows to predict the dynamics of changes in labor productivity or to assess the future need for qualified specialists.

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Published
2021-12-30
How to Cite
Larchenko, O. (2021). THE USE OF SIMULATION MODEL IN GINSOLVING THE PROBLEMS OF ECONOMIC OPTIMIZATION. Taurida Scientific Herald. Series: Economics, (10), 149-156. https://doi.org/10.32851/2708-0366/2021.10.20
Section
MATHEMATICAL METHODS, MODELS AND INFORMATION TECHNOLOGIES IN ECONOMY