Financial simulation: Combining cost information in systems analysis

Financial simulation enhances manufacturing simulation by adding the cost estimates of the alternatives under study that will affect the final decision. The authors emphasize that financial simulation is a planning tool, not an accounting package. Financial simulation will not provide either historical or current tracking of manufacturing costs. Thus, the present work is intended for both simulationists and technical management, but not for the traditional financial analyst. The authors discuss what financial simulation is and is not, who should use it, and how to effectively utilize this technology. In addition, they provide a brief description of the mechanics behind the financial models