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Robust optimization in simulation: Taguchi and Response Surface Methodology

Author

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  • Dellino, Gabriella
  • Kleijnen, Jack P.C.
  • Meloni, Carlo

Abstract

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.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:proeco:v:125:y:2010:i:1:p:52-59
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    References listed on IDEAS

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    1. S. Illeris & G. Akehurst, 2001. "Introduction," The Service Industries Journal, Taylor & Francis Journals, pages 1-4.
    2. Yu, Gang, 1997. "Robust economic order quantity models," European Journal of Operational Research, Elsevier, vol. 100(3), pages 482-493, August.
    3. 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.
    4. Dellino, Gabriella & Kleijnen, Jack P.C. & Meloni, Carlo, 2010. "Robust optimization in simulation: Taguchi and Response Surface Methodology," International Journal of Production Economics, Elsevier, pages 52-59.
    5. 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.
    6. 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.
    7. Borgonovo, E. & Peccati, L., 2007. "Global sensitivity analysis in inventory management," International Journal of Production Economics, Elsevier, pages 302-313.
    8. Darwish, M.A., 2008. "EPQ models with varying setup cost," International Journal of Production Economics, Elsevier, pages 297-306.
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    Citations

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    Cited by:

    1. Julien Marzat & Eric Walter & Hélène Piet-Lahanier, 2013. "Worst-case global optimization of black-box functions through Kriging and relaxation," Journal of Global Optimization, Springer, pages 707-727.
    2. Dellino, Gabriella & Kleijnen, Jack P.C. & Meloni, Carlo, 2010. "Robust optimization in simulation: Taguchi and Response Surface Methodology," International Journal of Production Economics, Elsevier, pages 52-59.
    3. repec:eee:ejores:v:263:y:2017:i:3:p:996-1006 is not listed on IDEAS
    4. Kleijnen, J.P.C., 2008. "Design of Experiments : An Overview," Discussion Paper 2008-70, Tilburg University, Center for Economic Research.
    5. Kleijnen, Jack P.C., 2011. "Ethical issues in engineering models : An operations researcher's reflections," Other publications TiSEM 88caba9e-1d78-47d7-9a0b-b, Tilburg University, School of Economics and Management.
    6. Kleijnen, Jack P.C., 2013. "Simulation-Optimization via Kriging and Bootstrapping : A Survey (Revision of CentER DP 2011-064)," Discussion Paper 2013-064, Tilburg University, Center for Economic Research.
    7. repec:eee:ejores:v:262:y:2017:i:2:p:673-681 is not listed on IDEAS
    8. repec:eee:transe:v:106:y:2017:i:c:p:203-230 is not listed on IDEAS
    9. Kleijnen, Jack P.C. & Pierreval, Henri & Zhang, Jin, 2011. "Methodology for determining the acceptability of system designs in uncertain environments," European Journal of Operational Research, Elsevier, pages 176-183.
    10. Kleijnen, Jack P.C., 2014. "Response Surface Methodology," Discussion Paper 2014-013, Tilburg University, Center for Economic Research.
    11. Shi, Wen & Liu, Zhixue & Shang, Jennifer & Cui, Yujia, 2013. "Multi-criteria robust design of a JIT-based cross-docking distribution center for an auto parts supply chain," European Journal of Operational Research, Elsevier, vol. 229(3), pages 695-706.
    12. Besseris, George J., 2012. "Profiling effects in industrial data mining by non-parametric DOE methods: An application on screening checkweighing systems in packaging operations," European Journal of Operational Research, Elsevier, vol. 220(1), pages 147-161.

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