Optimization for Simulation: Theory vs. Practice

TLDR

Discrete‑event simulation software has become a highly successful interface between operations research and computer science, and most modern packages now include optimization routines. This article argues that research on simulation optimization—focused on stochastic convergence and mathematically elegant algorithms—has diverged from the general deterministic metaheuristic methods adopted by commercial software. The authors provide a tutorial review of research approaches and contrast them with the algorithms implemented in commercial simulation packages. They conclude by speculating on promising research directions and potential future practice improvements. Keywords: Simulation Optimization, Simulation Software, Stochastic Approximation, Metaheuristics.

Abstract

Probably one of the most successful interfaces between operations research and computer science has been the development of discrete-event simulation software. The recent integration of optimization techniques into simulation practice, specifically into commercial software, has become nearly ubiquitous, as most discrete-event simulation packages now include some form of “optimization” routine. The main thesis of this article, however, is that there is a disconnect between research in simulation optimization—which has addressed the stochastic nature of discrete-event simulation by concentrating on theoretical results of convergence and specialized algorithms that are mathematically elegant—and the recent software developments, which implement very general algorithms adopted from techniques in the deterministic optimization metaheuristic literature (e.g., genetic algorithms, tabu search, artificial neural networks). A tutorial exposition that summarizes the approaches found in the research literature is included, as well as a discussion contrasting these approaches with the algorithms implemented in commercial software. The article concludes with the author’s speculations on promising research areas and possible future directions in practice. (Simulation Optimization; Simulation Software; Stochastic Approximation; Metaheuristics)