Article ID: | iaor20073418 |
Country: | South Korea |
Volume: | 32 |
Issue: | 1 |
Start Page Number: | 9 |
End Page Number: | 17 |
Publication Date: | Jan 2006 |
Journal: | Journal of the Korean Institute of Industrial Engineers |
Authors: | Lee Young Hae, Park Kyoung Jong |
Keywords: | inventory |
This paper deals with a discrete simulation optimization method for designing a complex probabilistic discrete event simulation. The developed algorithm uses the configuration algorithm that can change decision variables and the stopping algorithm that can end simulation in order to satisfy the given objective value during single run. It tries to estimate an auto-regressive model for evaluating correctly the objective function obtained by a small amount of output data. We apply the proposed algorithm to M/M/s model, (s, S) inventory model, and known-function problem. The proposed algorithm can't always guarantee the optimal solution but the method gives an approximate feasible solution in a relatively short time period. We, therefore, show the proposed algorithm can be used as an initial feasible solution of existing optimization methods that need multiple simulation run to search an optimal solution.