Management problems are becoming more and more complex. True scientific management demands the exact consideration of all the factors that are significant to the problem under study. In dealing with practical problems, one cannot tease out separate psychological, economic, or technological aspects as the problem mostly always involves working with a total integrated organizational unit. Due to the abundancy and interrelation of these factors, it made it more difficult if not impossible in many cases to reach a solution by the analytical methods. Thus, many managerial problems if they are to be accurately identified and quantifiably solved, should be simulated.

Simulation has become a very important process or tool available to modern managers. But, to be a useful tool, it should be used effectively. Realizing:

1. The usefulness of the simulation process to managers to the point that in many cases it becomes imperative to simulate if a system is to be precisely understood or a problem is to be correctly solved.

2. The degree of controversy that has flared-up about the exact definition of simulation to the point that it has become difficult to state what is simulation and what is not.

The researcher has chosen to direct this research towards discovering a practical and systematic approach to simulating managerial problems. There are different types of simulations that are used for different purposes. All types are to be mentioned and defined in this research. But, due to the fact that Digital all-computer simulation is the type mostly used in solving managerial problems, it is to be the purpose of this research.

This research has been organized in the following manner:

1. Chapters 1, 2, and 3 explain in detail the concept, definition, and the different phases of the simulation process in order to set the stage for a detailed and practical discussion of a simulation application.

2. Chapter 4 presents an inventory control problem together with its solution via a digital all-computer simulation. The reason behind choosing such a problem is that inventory problems are the most common problems that managers encounter especially in the U.A.R. where inventory control has not received enough attention and where it is the problem to most if not all sectors (Government, public, and private).

3. Appendix I has been added to the research in order to provide the reader with the exact definitions of the terms that are mostly used in such operations. As uncertainty in business is more the rule than the exception, most of its models are proba­bilistic in nature. Appendix II has been added to introduce the elements of the probability theory and the most commonly used and encountered probability distributions to help the simulator in designing, manipulating, and reaching conclusions in such a context.


Economics Department

Degree Name

MA in Economics

Date of Award


Online Submission Date


First Advisor

Farouk El Hitamy

Document Type



193 leaves

Library of Congress Subject Heading 1

Personnel management.

Library of Congress Subject Heading 2



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Call Number

Thesis 1971/147



Included in

Economics Commons