IDEAS home Printed from https://ideas.repec.org/a/gam/jadmsc/v10y2020i3p47-d391840.html
   My bibliography  Save this article

Modern Optimization and Simulation Methods in Managerial and Business Economics: A Review

Author

Listed:
  • Laura Calvet

    (IN3—Computer Science Department, Universitat Oberta de Catalunya, 08018 Barcelona, Spain
    Business Department, International University of Valencia, 46002 Valencia, Spain)

  • Rocio de la Torre

    (INARBE Institute, Public University of Navarre, Campus de Arrosadia, 31006 Pamplona, Spain)

  • Anita Goyal

    (Indian Institute of Management, Lucknow 226013, India)

  • Mage Marmol

    (Euncet Business School, 08225 Terrassa, Spain)

  • Angel A. Juan

    (IN3—Computer Science Department, Universitat Oberta de Catalunya, 08018 Barcelona, Spain
    Euncet Business School, 08225 Terrassa, Spain)

Abstract

Managerial and Business Economics (ME/BE) aims at using quantitative and computational methods to make an efficient (ideally optimal) assignment of the scarce resources owned by firms and organizations. In the current global market, characterized by a fierce competition, an optimal use of the available resources is more important than ever for guaranteeing the economical sustainability of organizations and enterprises of any size. Heuristic optimization algorithms and simulation methods have been successfully employed to analyze and enhance complex systems and processes in a myriad of ME/BE-related fields. This paper reviews recent works on the use of these methodologies in competitive markets, as well as in imperfect markets considering externalities. The paper also discusses open challenges and how state-of-the art methods combining optimization, simulation, and machine learning can contribute to properly address them.

Suggested Citation

  • Laura Calvet & Rocio de la Torre & Anita Goyal & Mage Marmol & Angel A. Juan, 2020. "Modern Optimization and Simulation Methods in Managerial and Business Economics: A Review," Administrative Sciences, MDPI, vol. 10(3), pages 1-23, July.
    • Handle: RePEc:gam:jadmsc:v:10:y:2020:i:3:p:47-:d:391840
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2076-3387/10/3/47/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2076-3387/10/3/47/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Robbins, Matthew J. & Lunday, Brian J., 2016. "A bilevel formulation of the pediatric vaccine pricing problem," European Journal of Operational Research, Elsevier, vol. 248(2), pages 634-645.
    2. Javier Panadero & Jana Doering & Renatas Kizys & Angel A. Juan & Angels Fito, 2020. "A variable neighborhood search simheuristic for project portfolio selection under uncertainty," Journal of Heuristics, Springer, vol. 26(3), pages 353-375, June.
    3. Karbowski, Adam, 2019. "Cooperative and non-cooperative R&D in product innovation and firm performance," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 20(6), pages 1121-1142.
    4. Parenti, Mathieu & Ushchev, Philip & Thisse, Jacques-François, 2017. "Toward a theory of monopolistic competition," Journal of Economic Theory, Elsevier, vol. 167(C), pages 86-115.
    5. Christian Fikar & Angel A. Juan & Enoc Martinez & Patrick Hirsch, 2016. "A discrete-event driven metaheuristic for dynamic home service routing with synchronised trip sharing," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 10(3), pages 323-340.
    6. Wang, Jian & Cao, De-bi, 2008. "Relationships between two approaches for planning manufacturing strategy: A strategic approach and a paradigmatic approach," International Journal of Production Economics, Elsevier, vol. 115(2), pages 349-361, October.
    7. Graham, J. Edward & Lassala, Carlos & Ribeiro-Navarrete, Belén, 2019. "A fuzzy-set analysis of conditions influencing mutual fund performance," International Review of Economics & Finance, Elsevier, vol. 61(C), pages 324-336.
    8. Xiaowei Cai & Kyle W. Stiegert & Stephen R. Koontz, 2011. "Oligopsony Fed Cattle Pricing: Did Mandatory Price Reporting Increase Meatpacker Market Power?," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(4), pages 606-622.
    9. Marynissen, Joren & Demeulemeester, Erik, 2019. "Literature review on multi-appointment scheduling problems in hospitals," European Journal of Operational Research, Elsevier, vol. 272(2), pages 407-419.
    10. Aljoscha Gruler & Carlos L. Quintero-Araújo & Laura Calvet & Angel A. Juan, 2017. "Waste collection under uncertainty: a simheuristic based on variable neighbourhood search," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 11(2), pages 228-255.
    11. Dmitry Ivanov, 2017. "Simulation-based ripple effect modelling in the supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 55(7), pages 2083-2101, April.
    12. Yi Tang & Jing Ling & Tingting Ma & Ning Chen & Xiaofeng Liu & Bingtuan Gao, 2017. "A Game Theoretical Approach Based Bidding Strategy Optimization for Power Producers in Power Markets with Renewable Electricity," Energies, MDPI, vol. 10(5), pages 1-16, May.
    13. Rajshree Agarwal & Constance E. Helfat, 2009. "Strategic Renewal of Organizations," Organization Science, INFORMS, vol. 20(2), pages 281-293, April.
    14. Daniele Ferone & Aljoscha Gruler & Paola Festa & Angel A. Juan, 2019. "Enhancing and extending the classical GRASP framework with biased randomisation and simulation," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 70(8), pages 1362-1375, August.
    15. Zhou, Wenhui & Huang, Weixiang, 2016. "Contract designs for energy-saving product development in a monopoly," European Journal of Operational Research, Elsevier, vol. 250(3), pages 902-913.
    16. Robert C. Feenstra, 2010. "Measuring the gains from trade under monopolistic competition," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 43(1), pages 1-28, February.
    17. Azadeh, A. & Skandari, M.R. & Maleki-Shoja, B., 2010. "An integrated ant colony optimization approach to compare strategies of clearing market in electricity markets: Agent-based simulation," Energy Policy, Elsevier, vol. 38(10), pages 6307-6319, October.
    18. Nazaré Rego & João Claro & Jorge Pinho de Sousa, 2014. "A hybrid approach for integrated healthcare cooperative purchasing and supply chain configuration," Health Care Management Science, Springer, vol. 17(4), pages 303-320, December.
    19. Satyajith Amaran & Nikolaos V. Sahinidis & Bikram Sharda & Scott J. Bury, 2016. "Simulation optimization: a review of algorithms and applications," Annals of Operations Research, Springer, vol. 240(1), pages 351-380, May.
    20. Annicchiarico, Barbara & Marvasi, Enrico, 2019. "Protection for sale under monopolistic competition: Beyond the CES," European Journal of Political Economy, Elsevier, vol. 60(C).
    21. Soumojit Kumar & Ashis Kumar Chatterjee, 2015. "A profit maximising product line optimisation model under monopolistic competition," International Journal of Production Research, Taylor & Francis Journals, vol. 53(5), pages 1584-1595, March.
    22. Lin Xie & Marius Merschformann & Natalia Kliewer & Leena Suhl, 2017. "Metaheuristics approach for solving personalized crew rostering problem in public bus transit," Journal of Heuristics, Springer, vol. 23(5), pages 321-347, October.
    23. Francesco Longo & Luigi Siciliani & Hugh Gravelle & Rita Santos, 2017. "Do hospitals respond to rivals' quality and efficiency? A spatial panel econometric analysis," Health Economics, John Wiley & Sons, Ltd., vol. 26(S2), pages 38-62, September.
    24. José Crispim & Nazaré Rego & Jorge Pinho de Sousa, 2015. "Stochastic partner selection for virtual enterprises: a chance-constrained approach," International Journal of Production Research, Taylor & Francis Journals, vol. 53(12), pages 3661-3677, June.
    25. Fayçal Belkaid & Farouk Yalaoui & Zaki Sari, 2016. "An Efficient Approach for the Reentrant Parallel Machines Scheduling Problem under Consumable Resources Constraints," International Journal of Information Systems and Supply Chain Management (IJISSCM), IGI Global, vol. 9(3), pages 1-25, July.
    26. AM Alvarez & EG Fidalgo & RJ Sexton & M Zhang, 2000. "Oligopsony power with uniform spatial pricing: theory and application to milk processing in Spain," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 27(3), pages 347-364, September.
    27. Fabian Dunke & Stefan Nickel, 2017. "Evaluating the quality of online optimization algorithms by discrete event simulation," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 25(4), pages 831-858, December.
    28. Christina Iliopoulou & Konstantinos Kepaptsoglou & Eleni Vlahogianni, 2019. "Metaheuristics for the transit route network design problem: a review and comparative analysis," Public Transport, Springer, vol. 11(3), pages 487-521, October.
    29. Jourdan, L. & Basseur, M. & Talbi, E.-G., 2009. "Hybridizing exact methods and metaheuristics: A taxonomy," European Journal of Operational Research, Elsevier, vol. 199(3), pages 620-629, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mohammad Peyman & Pedro J. Copado & Rafael D. Tordecilla & Leandro do C. Martins & Fatos Xhafa & Angel A. Juan, 2021. "Edge Computing and IoT Analytics for Agile Optimization in Intelligent Transportation Systems," Energies, MDPI, vol. 14(19), pages 1-26, October.
    2. Angel A. Juan & Peter Keenan & Rafael Martí & Seán McGarraghy & Javier Panadero & Paula Carroll & Diego Oliva, 2023. "A review of the role of heuristics in stochastic optimisation: from metaheuristics to learnheuristics," Annals of Operations Research, Springer, vol. 320(2), pages 831-861, January.
    3. Victor Abu-Marrul & Rafael Martinelli & Silvio Hamacher & Irina Gribkovskaia, 2023. "Simheuristic algorithm for a stochastic parallel machine scheduling problem with periodic re-planning assessment," Annals of Operations Research, Springer, vol. 320(2), pages 547-572, January.
    4. Arnau, Quim & Barrena, Eva & Panadero, Javier & de la Torre, Rocio & Juan, Angel A., 2022. "A biased-randomized discrete-event heuristic for coordinated multi-vehicle container transport across interconnected networks," European Journal of Operational Research, Elsevier, vol. 302(1), pages 348-362.
    5. Juliana Castaneda & Xabier A. Martin & Majsa Ammouriova & Javier Panadero & Angel A. Juan, 2022. "A Fuzzy Simheuristic for the Permutation Flow Shop Problem under Stochastic and Fuzzy Uncertainty," Mathematics, MDPI, vol. 10(10), pages 1-17, May.
    6. Noordhoek, Marije & Dullaert, Wout & Lai, David S.W. & de Leeuw, Sander, 2018. "A simulation–optimization approach for a service-constrained multi-echelon distribution network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 114(C), pages 292-311.
    7. Xia, Tian & Sancewich, Brian, 2012. "Retail Markets and Buyer Power in Agricultural Procurements," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124929, Agricultural and Applied Economics Association.
    8. Huo, Jinbiao & Liu, Chengqi & Chen, Jingxu & Meng, Qiang & Wang, Jian & Liu, Zhiyuan, 2023. "Simulation-based dynamic origin–destination matrix estimation on freeways: A Bayesian optimization approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 173(C).
    9. Keun-Seob Choi & Jeong-Dong Lee & Chulwoo Baek, 2016. "Growth of De Alio and De Novo firms in the new and renewable energy industry," Industry and Innovation, Taylor & Francis Journals, vol. 23(4), pages 295-312, May.
    10. Hazhir Rahmandad & Nelson Repenning, 2016. "Capability erosion dynamics," Strategic Management Journal, Wiley Blackwell, vol. 37(4), pages 649-672, April.
    11. Kazadi, Kande & Lievens, Annouk & Mahr, Dominik, 2016. "Stakeholder co-creation during the innovation process: Identifying capabilities for knowledge creation among multiple stakeholders," Journal of Business Research, Elsevier, vol. 69(2), pages 525-540.
    12. Rebolledo, Claudia & Jobin, Marie-Hélène, 2013. "Manufacturing and supply alignment: Are different manufacturing strategies linked to different purchasing practices?," International Journal of Production Economics, Elsevier, vol. 146(1), pages 219-226.
    13. Martín-Rojas, Rodrigo & Garrido-Moreno, Aurora & García-Morales, Víctor J., 2023. "Social media use, corporate entrepreneurship and organizational resilience: A recipe for SMEs success in a post-Covid scenario," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    14. Fontagné, Lionel & Secchi, Angelo & Tomasi, Chiara, 2018. "Exporters’ product vectors across markets," European Economic Review, Elsevier, vol. 110(C), pages 150-180.
    15. Ivona Brajević, 2021. "A Shuffle-Based Artificial Bee Colony Algorithm for Solving Integer Programming and Minimax Problems," Mathematics, MDPI, vol. 9(11), pages 1-20, May.
    16. Ardelean, Adina & Lugovskyy, Volodymyr, 2010. "Domestic productivity and variety gains from trade," Journal of International Economics, Elsevier, vol. 80(2), pages 280-291, March.
    17. Wei-Bin Zhang, 2018. "An Integration of Solow’s Growth and Dixit-Stiglitz’s Monopolistic Competition Models," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 68(4), pages 3-19, October-D.
    18. Karbowski, Adam, 2019. "Greed and fear in downstream R&D games," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 32, pages 63-76.
    19. Plan, Asaf, 2023. "Symmetry in n-player games," Journal of Economic Theory, Elsevier, vol. 207(C).
    20. Fausti, Scott W. & Qasmi, Bashir A. & Diersen, Matthew A & Adamson, Bill, 2014. "Grid Valuation of Beef Carcass Quality: Market Power and Market Trends," Economics Staff Papers 171423, South Dakota State University, Department of Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jadmsc:v:10:y:2020:i:3:p:47-:d:391840. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.