Please note: The algorithm descriptions in English have been automatically translated. Errors may have been introduced in this process. For the original descriptions, go to the Dutch version of the Algorithm Register.
Procurement software
- Publication category
- Other algorithms
- Impact assessment
- Field not filled in.
- Status
- In development
General information
Theme
Begin date
Contact information
Responsible use
Goal and impact
Directorate of Engineering, specifically Lead Buyer Physical, uses an external internet site for making a probabilistic run-through of an estimate, which performs a Monte Carlo simulation on the input of the estimate. The output consists of a value for the reliability of the estimate and a top 10 components that make the highest contribution to it. The Monte Carlo Methodology is based on an algorithm. The description of the methodology reads:
Monte Carlo methods, or Monte Carlo experiments, are a broad class of computational algorithms that rely on repeated random sampling to obtain numerical results. The underlying concept is to use randomness to solve problems that might be deterministic in principle. They are often used in physical and mathematical problems and are most useful when it is difficult or impossible to use other approaches. Monte Carlo methods are mainly used in three problem classes: optimisation, numerical integration, and generating draws from a probability distribution.
The internet site used works with automated Monte Carlo algorithms and generates information that is used in credit decisions.
Considerations
Human intervention
Risk management
Operations
Data
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