Simulation-optimisation: The method and its application in the analysis of grain terminal operations

Simulation-optimisation is presented as a method for solving complex decision problems. It consists of coupling a simulation model with a search method. The paper describes a case study where the method was applied in the analysis of grain terminal operations. A considerable computational effort is required in its application. This becomes critical when the evaluation of the objective function or any of the problem constraint functions is directly associated with the occurrence of ‘rare events’. The case study illustrates how these difficulties can be overcome by a careful exploitation of the particular structure of the problem under analysis.