A comparison of simulation and mathematical optimization

The high complexity of production planning models suggests their intractability to exact optimization. In practice, therefore, simulation is preferred. The paper reviews the state of standard software packages for mathematical programming and simulation and their characteristics. Then, modelling techniques for dynamic production systems are discussed. Both tools, a mathematical programming systems software and a simulation language, are used to solve selected problems from the area of job shop scheduling and serial production. The solutions are compared. They give the basis for a critical evaluation of the two approaches.