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.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- S. Illeris & G. Akehurst, 2001. "Introduction," The Service Industries Journal, Taylor & Francis Journals, vol. 21(1), pages 1-4, January.
- Yu, Gang, 1997. "Robust economic order quantity models," European Journal of Operational Research, Elsevier, vol. 100(3), pages 482-493, August.
- 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.
- 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.
- 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, Tilburg University, School of Economics and Management.
- 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.
- 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.
- 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. Full references (including those not matched with items on IDEAS)