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Optimization in simulation: Current issues and the future outlook

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  • M. Hossein Safizadeh

Abstract

Simulation is commonly used to find the best values of decision variables for problems which defy analytical solutions. This objective is similar to that of optimization problems and thus, mathematical programming techniques may be applied to simulation. However, the application of mathematical programming techniques, e.g., the gradient methods, to simulation is compounded by the random nature of simulation responses and by the complexity of the statistical issues involved. The literature relevant to optimization in simulation is scattered, and no comprehensive and up‐to‐date treatment of the subject is presently available. To that end, this article brings together numerous concepts related to t he problem of optimization in simulation. Specifically, it discusses the application of mathematical programming techniques to optimization in simulation, response surface methodology and designs, perturbation analysis, and frequency domain simulation experiments. The article provides a user with an overview of the available optimization techniues and identifies future research possibilities.

Suggested Citation

  • M. Hossein Safizadeh, 1990. "Optimization in simulation: Current issues and the future outlook," Naval Research Logistics (NRL), John Wiley & Sons, vol. 37(6), pages 807-825, December.
    • Handle: RePEc:wly:navres:v:37:y:1990:i:6:p:807-825
    DOI: 10.1002/1520-6750(199012)37:63.0.CO;2-F
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    References listed on IDEAS

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    Cited by:

    1. Felisa J. Vázquez-Abad & Sheldon H. Jacobson, 2001. "Phantom Harmonic Gradient Estimators for Nonpreemptive Priority Queueing Systems," INFORMS Journal on Computing, INFORMS, vol. 13(4), pages 345-359, November.
    2. Ingrid W. M. Crouch & Allen G. Greenwood & Loren Paul Rees, 1995. "Use of a classifier in a knowledge‐based simulation optimization system," Naval Research Logistics (NRL), John Wiley & Sons, vol. 42(8), pages 1203-1232, December.
    3. Sridhar Bashyam & Michael C. Fu, 1994. "Application of perturbation analysis to a class of periodic review (s, S) inventory systems," Naval Research Logistics (NRL), John Wiley & Sons, vol. 41(1), pages 47-80, February.

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