The representation of accounting data in industrial simulation

The authors examine the use of accounting data, particularly cost and investment figures, in manufacturing simulations. They briefly review current accounting thought and practices, as relevant to simulation, and describe a modeling approach that accommodates these practices. They describe a layered simulation where the information flow carrying cost data is overlaid on top of the dominant production flow. This layering allows a modeler to represent dynamic cost behavior, aggregation, and allocation of costs, as well as generation of cost reports for virtually any accounting practice. It focuses attention on the information system needed to get the correct cost information for managing the manufacturing enterprise. The simulation program used (IBIS) is capable of expanding the single production station into a series of production stations without rewriting any existing data entries or redesigning the model, so that more complex models can be developed from this preliminary model