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Modern Optimization and Simulation Methods in Managerial and Business Economics: A Review

Author

Listed:
  • Laura Calvet

    (IN3—Computer Science Department, Universitat Oberta de Catalunya, 08018 Barcelona, Spain
    Business Department, International University of Valencia, 46002 Valencia, Spain)

  • Rocio de la Torre

    (INARBE Institute, Public University of Navarre, Campus de Arrosadia, 31006 Pamplona, Spain)

  • Anita Goyal

    (Indian Institute of Management, Lucknow 226013, India)

  • Mage Marmol

    (Euncet Business School, 08225 Terrassa, Spain)

  • Angel A. Juan

    (IN3—Computer Science Department, Universitat Oberta de Catalunya, 08018 Barcelona, Spain
    Euncet Business School, 08225 Terrassa, Spain)

Abstract

Managerial and Business Economics (ME/BE) aims at using quantitative and computational methods to make an efficient (ideally optimal) assignment of the scarce resources owned by firms and organizations. In the current global market, characterized by a fierce competition, an optimal use of the available resources is more important than ever for guaranteeing the economical sustainability of organizations and enterprises of any size. Heuristic optimization algorithms and simulation methods have been successfully employed to analyze and enhance complex systems and processes in a myriad of ME/BE-related fields. This paper reviews recent works on the use of these methodologies in competitive markets, as well as in imperfect markets considering externalities. The paper also discusses open challenges and how state-of-the art methods combining optimization, simulation, and machine learning can contribute to properly address them.

Suggested Citation

  • Laura Calvet & Rocio de la Torre & Anita Goyal & Mage Marmol & Angel A. Juan, 2020. "Modern Optimization and Simulation Methods in Managerial and Business Economics: A Review," Administrative Sciences, MDPI, vol. 10(3), pages 1-23, July.
    • Handle: RePEc:gam:jadmsc:v:10:y:2020:i:3:p:47-:d:391840
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    References listed on IDEAS

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