Simulation optimization: A comprehensive review on theory and applications

Abstract

For several decades, simulation has been used as a descriptive tool by the operations research community in the modeling and analysis of a wide variety of complex real systems. With recent developments in simulation optimization and advances in computing technology, it now becomes feasible to use simulation as a prescriptive tool in decision support systems. In this paper, we present a comprehensive survey on techniques for simulation optimization with emphasis given on recent developments. We classify the existing techniques according to problem characteristics such as shape of the response surface (global as compared to local optimization), objective functions (single or multiple objectives) and parameter spaces (discrete or continuous parameters). We discuss the major advantages and possible drawbacks of the different techniques. A comprehensive bibliography and future research directions are also provided in the paper.

A review of coordination studies in the context of supply chain dynamics

“…For a general review of supply chain simulation study, please refer to Terzi and Cavalieri (2004). For a general review of simulation optimisation, please refer to Tekin and Sabuncuoglu (2004).…”

Simulation-Based Hybrid Approach to Robust Multi-Echelon Inventory Policies for Complex Distribution Networks

“…Besides the traditional analytical approaches, another type of approaches for analysing complex distribution networks is simulation, which is increasingly utilized with the rapid development of information technology [9,12]. Apart from the traditional view that simulation serves only as "a descriptive tool in the modelling and analysis of a wide variety of complex real systems", recent advancement in optimization approach and computing technology make it "a prescriptive tool in support decision making" [13]. In Barton's work, the simulation-based optimization is defined as "repeated analysis of the simulation model with different values of design parameters, in an attempt to identify best simulated system performance" [14].…”

Simulation optimization: a review of algorithms and applications

“…A detailed survey that traces the development of techniques in simulation optimization over finite sets is available in [194].…”

“…[135,99,174,15,59,29,7,16,191,61,60,194,62,9,88,5,152]), books and research monographs (cf. [186,171,115,35]), and theses (cf.…”