Corporate simulation of an urban bus system

The importance of System Simulation in Corporate decision making for strategic planning is reflected in this article by developing a Corporate Simulation Model of an urban Road Transport Undertaking. The model enables the analyst to evaluate various policy alternatives viz. planned service levels, fare structures and vehicle replacement periods, the system response being cash generated. A framework was conceived and the model structure verified. The program was drawn up using FORTRAN and was implemented. Validation actions such as graphical comparison of simulated and actual time path of response variables, computation of Theil's inequality coefficient for the response variables and setting up of confidence limits for the simulated sample mean were taken to ensure model adequacy for experimental study. © 1979 Physica-Verlag.