Advantages
Simulation is best suited to analyze complex and large practical problems when it is not possible to solve them through a mathematical method.
Simulation is flexible, hence changes in the system variables can be made to select the best solution among the various alternatives.
In simulation, the experiments are carried out with the model without disturbing the system.
Policy decisions can be made much faster by knowing the options well in advance and by reducing the risk of experimenting in the real system.
Disadvantages
Simulation does not generate optimal solutions.
It may take a long time to develop a good simulation model.
In certain cases simulation models can be very expensive.
The decision-maker must provide all information (depending on the model) about the constraints and conditions for examination, as simulation does not give the answers by itself.