There is more to numbers than one, two, three . Actuarial Science brings together uncertain events, finance, and probability. It is the scientific underpinning of risk management. Forecasting studies the art and science of making educated guesses about the future. Quantitative forecasting guesses things we can measure, things like revenue, births, and air pollution.
Simulation substitutes for the real thing .
We concentrate on a technique called Monte Carlo simulation, which brings the computer equivalent of rolling the dice to a great variety of situations. Common applications are scheduling, process flow, and market reactions. The Just in Time management philosophy has given inventory a bad name. Inventory survives as a buffer between supply and demand. Japan still stockpiles rice.