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Management Support Systems
Notes Other important spreadsheet features include what-if analysis, goal seeking, trial and
error, optimization, data management, and programmability
Most spreadsheet packages provide fairly seamless integration because they read and
write common file structures and easily interface with databases and other tools
Static or dynamic models can be built in a spreadsheet.
Figure 5.3: Excel Spreadsheet Dynamic Model – Example of a Simple Loan Calculation of
Monthly Payments and the Effects of Prepayment
Self Assessment
State True or False:
8. Spreadsheets include extensive statistical, forecasting, and other modeling and database
management capabilities, functions, and routines.
9. Most spreadsheet packages does not provide fairly seamless integration.
5.5 Simulation
“Simulation is the appearance of reality. In MSS is a technique for Simulation conducting
experiments with a computer on a model of a management system. Because DSS deals with
semi-structured or unstructured situations, reality is complex, which may not be easily
represented by optimization or other models but can often be handled by simulation. Simulation
is one of the most commonly used DSS methods.”
5.5.1 Characteristics of Simulation
The Characteristics of Simulation are:
Models represent reality, simulation imitates it.
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