Simulation Optimization and a Case Study

Chapter Preview

Key Terms in this Chapter

Perturbation Analysis: It examines the output of a model to changes in its input variables.

Optimization: It is the selection of the best value based on some criteria from some set of available alternatives.

Gradient: Gradient vector of a function is the partial derivatives with respect to each of the independent variables.

Gradient-Based Simulation Optimization: A gradient-based approach requires a mathematical expression of the objective function, when such mathematical expression cannot be obtained. Simulation based gradient estimation is a technique to start the solution procedure.

Simulation Optimization: It is the optimization of an output by finding the best input variable values from among all possibilities without explicitly evaluating each possibility of these input variable values.

OptQuest: It is an optimization tool provided in ARENA simulation software.

Input Variable: It is the variable whose values affect the output (response) of the system.