Robust optimization in simulation: Taguchi and Response Surface Methodology
Optimization of simulated systems is tackled by many methods, but most methods assume known environments. This article, however, develops a 'robust' methodology for uncertain environments. This methodology uses Taguchi's view of the uncertain world, but replaces his statistical techniques by Response Surface Methodology (RSM). George Box originated RSM, and Douglas Montgomery recently extended RSM to robust optimization of real (non-simulated) systems. We combine Taguchi's view with RSM for simulated systems. We illustrate the resulting methodology through classic Economic Order Quantity (EOQ) inventory models, which demonstrate that robust optimization may require order quantities that differ from the classic EOQ.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Teng, Jinn-Tsair, 2009. "A simple method to compute economic order quantities," European Journal of Operational Research, Elsevier, vol. 198(1), pages 351-353, October.
- Dellino, G. & Kleijnen, Jack P.C. & Meloni, C., 2010.
"Robust optimization in simulation : Taguchi and Response Surface Methodology,"
Other publications TiSEM
6a101dae-10b0-40af-815f-0, School of Economics and Management.
- Dellino, Gabriella & Kleijnen, Jack P.C. & Meloni, Carlo, 2010. "Robust optimization in simulation: Taguchi and Response Surface Methodology," International Journal of Production Economics, Elsevier, vol. 125(1), pages 52-59, May.
- Dellino, G. & Kleijnen, J.P.C. & Meloni, C., 2008. "Robust Optimization in Simulation : Taguchi and Response Surface Methodology," Discussion Paper 2008-69, Tilburg University, Center for Economic Research.
- Wu, Jun & Li, Jian & Wang, Shouyang & Cheng, T.C.E., 2009. "Mean-variance analysis of the newsvendor model with stockout cost," Omega, Elsevier, vol. 37(3), pages 724-730, June.
- repec:ner:tilbur:urn:nbn:nl:ui:12-4379049 is not listed on IDEAS
- Yu, Gang, 1997. "Robust economic order quantity models," European Journal of Operational Research, Elsevier, vol. 100(3), pages 482-493, August.
- repec:dgr:kubcen:200869 is not listed on IDEAS
- Borgonovo, E. & Peccati, L., 2007. "Global sensitivity analysis in inventory management," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 302-313, July.
- Darwish, M.A., 2008. "EPQ models with varying setup cost," International Journal of Production Economics, Elsevier, vol. 113(1), pages 297-306, May.
- S. Illeris & G. Akehurst, 2001. "Introduction," The Service Industries Journal, Taylor & Francis Journals, vol. 21(1), pages 1-4, January.
- Pentico, David W. & Drake, Matthew J. & Toews, Carl, 2009. "The deterministic EPQ with partial backordering: A new approach," Omega, Elsevier, vol. 37(3), pages 624-636, June.
When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:125:y:2010:i:1:p:52-59. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.