Systems and their corresponding simulation models can be classified into several categories based on their characteristics.

• Discrete-Event vs. Continuous Systems:
  • Discrete System: The state variables change only at discrete points in time, known as events.
  • Continuous System: The state variables change continuously over time as a function.
• Stochastic vs. Deterministic Systems:
  • Stochastic System: The system is affected by randomness, and its output is a random variable.
  • Deterministic System: The system is not affected by randomness, and its output is not a random variable.
• Static vs. Dynamic Simulation:
  • Static Simulation: The models are not affected by time (e.g., Monte Carlo Model).
  • Dynamic Simulation: The models are affected by the passage of time.