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AnyLogic™

Advanced Analytic Methods

AnyLogic^TM 5.0 provides an excellent environment for applying the traditional financial concepts of probability distributions under uncertainty and the balance of risk and reward to the corporate strategy environment.  AnyLogic^TM supports replications of a simulation to capture performance under uncertainty.  The following graphic shows a probability distribution of the objective value of a portfolio of strategies under uncertainty.

While replications support the identification of the mean and standard deviation of a particular portfolio of strategies, the ability to support iterations of portfolios that each undergo replications to evaluate performance under uncertainty enables AnyLogic^TM to provide the data necessary to create an Efficient Frontier which captures the the risk reward balance and allows managers to select the optimal portfolio for their selected level of risk.  The following graphic demonstrates the Efficient Frontier.

The AnyLogic^TM state diagram structure provides a excellent structure for the modeling of Real Options analyses that can incorporate both probabilistic and deterministic nodes.  This structure can be integrated in a Portfolio Optimization simulation to provide a best-in-class multi-method simulation optimization approach.  The following graphic shows the capabilities of the state diagram structure.