Simulation of Business Processes

Simulation of Business Processes , photo: Gerd Altmann

Course ID: 
Year of Study: 
For Erasmus Students: 

Learning Outcomes

This course covers the modeling and analysis of business systems using computer simulation. The objective of the course is to introduce students to simulation as a modeling tool with emphasis on understanding the structure of a simulation model and implementing it by means of commercially available software (EXTEND). The course also covers the statistical design and analysis of simulation models. These topics include random number generation, input data analysis, statistical analysis of simulation outputs, variance reduction techniques, and design of simulation experiments. A series of laboratory sessions provide students with hands-on experience of designing and implementing simulation models.

At the end of this course the student should be able to:

  1. Design a simulation model for a particular system under examination.
  2. Implement the model using commercially available software.
  3. Design the experiments required in order to study the system under consideration.
  4. Analyze and interpret the results of the simulation.

At the end of the course the student will have further developed the following skills/competences:

  1. Implementation of models using the EXTEND package.
  2. Statistical analysis of simulation results.
  3. Reporting and presenting the results.

Course Contents

  1. The concept of simulation
  2. Discrete Event Simulation
  3. Random Numbers
  4. Business simulation
  5. Model testing and validation
  6. Planning and analysis of simulation output
  7. Applications

Teaching Activities

Lectures (2 hours per week) and Laboratory work (2 hours per week)

Teaching Organization


Semester workload

Lectures (2 contact hours per week x 13 weeks)


Laboratories (2 contact hours per week x 13 weeks) – designing and implementing simulation models


Group assignment related to simulating a realistic system and writing a relevant report


Hours for private study of the student and preparation of home-works


Total number of hours for the Course

(25 hours of work-load per ECTS credit)

150 hours (total student work-load)


  1. Final written exam (40%) which includes:
    • -    Theoretical questions
    • -    Practical exercises
  2. Group project (60%)
    • The group project concerns the design and development of a simulation model describing a realistic system. Students develop the problem gradually, as the required topics are presented in the lectures.

The group project is compulsory. 

Use of ICT

  • Use of Information and Communication Technologies (ICTs) (e.g. powerpoint) in teaching. The lectures content of the course for each chapter are uploaded on the e-class platform, in the form of a series of pdf files, from where the students can freely download them using a password which is provided to them at the beginning of the course.
  • Use of specialized Simulation software (EXTEND)

Course Info

Teaching Hours: 
3 hours per week
ECTS Credits: 
Teaching Credits: 
Teaching Method: 

Current Tutors

Reading List

Reading Recommendations: 
1. Σφακιανάκης Μ. «Προσομοίωση και Εφαρμογές», Εκδ. Πατάκη, 2001
2. Πραστάκος Γ. «Διοικητική Επιστήμη», Εκδ. Σταμούλη, 2002
3. Khoshnevis, Bherokh «Προσομοίωση Διακριτών Συστημάτων», Εκδ. ΔΙΑΥΛΟΣ, 1999
4. Pidd M. “Computer Simulation in Management Science”, Wiley 2004
5. Meier R.C., Newell N.T. and Pazer H.L. “Simulation in Business and Economics, Prentice Hall, 1997
6. Laguna M. “Business Process Modeling, Simulation, and Design”, Prentice Hall, 2004
7. McGarvey B. and Hannon B. “Dynamic Modeling for Business Management : An Introduction (Modeling Dynamic Systems)”, Springer, 2004
8. Winston W. “Simulation Modeling Using @RISK”, Duxbury Press, 2000