What Is Simulation? -- Actual Applications of Simulation -- What's Ahead? -- Simulation Models Versus Analytic Models -- Random Numbers--The Building Blocks of Simulation -- Using Spreadsheets to Perform Simulations -- The Newsvendor Problem -- Finding a Confidence Interval for Expected Profit -- How Many Trials Do We Need? -- Determination of the Optimal Order Quantity -- Using Excel Data Tables to Repeat a Simulation -- Performing the Newsvendor Simulation with the Excel Random Number Generator -- An Introduction to @RISK -- Simulating the Newsvendor Example with @RISK -- Explanation of Statistical Results -- Generating Normal Random Variables -- Simulating Normal Demand with @RISK -- Using the Graph Type Icons -- Placing Target Values in the Statistics Output -- Estimating the Mean and Standard Deviation of a Normal Distribution -- Applications of Simulation to Corporate Financial Planning -- Using the Triangular Distribution to Model Sales -- Sensitivity Analysis with Tornado Graphs -- Sensitivity Analysis with Scenarios -- Alternative Modeling Strategies -- Simulating a Cash Budget -- Cash Budgeting -- A Simulation Approach to Capacity Planning -- Wozac Capacity Example -- Simulation and Bidding -- Uniform Random Variables -- A Bidding Example -- Deming's Funnel Experiment -- Simulating Rule 1 (Don't Touch That Funnel!) -- Simulating Rule 2 -- Comparison of Rules 1-4 -- Lesson of the Funnel Experiment -- Mathematical Explanation of the Funnel Experiment -- The Taguchi Loss Function -- Using @RISK to Quantify Quality Loss