IDEAS home Printed from https://ideas.repec.org/a/wsi/apjorx/v32y2015i03ns0217595915500190.html
   My bibliography  Save this article

Simulation Optimization: A Review and Exploration in the New Era of Cloud Computing and Big Data

Author

Listed:
  • Jie Xu

    (Department of Systems Engineering and Operations Research, 4400 University Dr., MS 4A6, George Mason University, Fairfax VA 22030, USA)

  • Edward Huang

    (Department of Systems Engineering and Operations Research, 4400 University Dr., MS 4A6, George Mason University, Fairfax VA 22030, USA)

  • Chun-Hung Chen

    (Department of Systems Engineering and Operations Research, 4400 University Dr., MS 4A6, George Mason University, Fairfax VA 22030, USA)

  • Loo Hay Lee

    (Department of Industrial and Systems Engineering, National University of Singapore, Singapore 119077, Singapore)

Abstract

Recent advances in simulation optimization research and explosive growth in computing power have made it possible to optimize complex stochastic systems that are otherwise intractable. In the first part of this paper, we classify simulation optimization techniques into four categories based on how the search is conducted. We provide tutorial expositions on representative methods from each category, with a focus in recent developments, and compare the strengths and limitations of each category. In the second part of this paper, we review applications of simulation optimization in various contexts, with detailed discussions on health care, logistics, and manufacturing systems. Finally, we explore the potential of simulation optimization in the new era. Specifically, we discuss how simulation optimization can benefit from cloud computing and high-performance computing, its integration with big data analytics, and the value of simulation optimization to help address challenges in engineering design of complex systems.

Suggested Citation

  • Jie Xu & Edward Huang & Chun-Hung Chen & Loo Hay Lee, 2015. "Simulation Optimization: A Review and Exploration in the New Era of Cloud Computing and Big Data," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 32(03), pages 1-34.
    • Handle: RePEc:wsi:apjorx:v:32:y:2015:i:03:n:s0217595915500190
    DOI: 10.1142/S0217595915500190
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0217595915500190
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0217595915500190?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. ., 2013. "The Japanese construction sector," Chapters, in: Cartels, Competition and Public Procurement, chapter 10, pages 178-211, Edward Elgar Publishing.
    2. AfDB AfDB, . "African Statistical Journal Vol.16," African Statistical Journal, African Development Bank, number 455.
    3. Unknown, 2013. "JAAE Manuscript Submission Guidelines," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 45, pages 1-2, August.
    4. Ghassan Al-Utaibi, Ph.D, 2013. "Predicting Future Health Demands in Jordan," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 3(7), pages 130-136, July.
    5. van Damme, E.E.C., 2010. "Welzijn in perspectief," Other publications TiSEM 48b64718-2659-485e-bc2e-e, Tilburg University, School of Economics and Management.
    6. Rachel E. S. Ziemba & William T. Ziemba, 2013. "The January Barometer," World Scientific Book Chapters, in: Investing in the Modern Age, chapter 16, pages 191-203, World Scientific Publishing Co. Pte. Ltd..
    7. Unknown, 2013. "JARE Editors’ Report," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), pages 1-5.
    8. van Damme, E.E.C., 1997. "Je geld of je leven," Other publications TiSEM 838cf12d-4534-49fb-a08d-1, Tilburg University, School of Economics and Management.
    9. Ocde, 2013. "Documents et textes juridiques," Bulletin de droit nucléaire, Éditions OCDE, vol. 2012(2), pages 179-274.
    10. Unknown, 2010. "2008 AARES Distinguished Fellow: John Mullen," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(3), pages 1-2.
    11. Unknown, 2013. "JAAE backmatter," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 45(2), pages 1-2, May.
    12. AfDB AfDB, . "African Statistical Journal Vol. 9," African Statistical Journal, African Development Bank, number 57 edited by Koua Louis Kouakou, March.
    13. ., 2013. "A trajectory of legal tricks (hiyal)," Chapters, in: What is Wrong with Islamic Economics?, chapter 20, pages 337-401, Edward Elgar Publishing.
    14. van Damme, E.E.C., 2013. "Deugdelijke economen," Other publications TiSEM 15ce252a-21e4-411e-9702-4, Tilburg University, School of Economics and Management.
    15. N/A, 2010. "Chapter List June 30, 2009," The American Economist, Sage Publications, vol. 55(1), pages 140-153, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Corlu, Canan G. & Akcay, Alp & Xie, Wei, 2020. "Stochastic simulation under input uncertainty: A Review," Operations Research Perspectives, Elsevier, vol. 7(C).
    2. Jie Song & Xin Pan & Chao Lu & Hanchen Xu, 2017. "A Simulation-Based Optimization Method for Hybrid Frequency Regulation System Configuration," Energies, MDPI, vol. 10(9), pages 1-14, August.
    3. Roberto Aringhieri & Patrick Hirsch & Marion S. Rauner & Melanie Reuter-Oppermanns & Margit Sommersguter-Reichmann, 2022. "Central European journal of operations research (CJOR) “operations research applied to health services (ORAHS) in Europe: general trends and ORAHS 2020 conference in Vienna, Austria”," 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. 30(1), pages 1-18, March.
    4. James T. Lin & Chun-Chih Chiu & Edward Huang & Hung-Ming Chen, 2018. "A Multi-Fidelity Model Approach for Simultaneous Scheduling of Machines and Vehicles in Flexible Manufacturing Systems," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(01), pages 1-20, February.
    5. Jia, Shuai & Li, Chung-Lun & Xu, Zhou, 2020. "A simulation optimization method for deep-sea vessel berth planning and feeder arrival scheduling at a container port," Transportation Research Part B: Methodological, Elsevier, vol. 142(C), pages 174-196.
    6. Wai Kin Victor Chan, 2016. "Linear Programming Formulation of Idle Times for Single-Server Discrete-Event Simulation Models," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 33(05), pages 1-17, October.
    7. Shuang Xiao & Guo Li & Yunjing Jia, 2017. "Estimating the Constant Elasticity of Variance Model with Data-Driven Markov Chain Monte Carlo Methods," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 34(01), pages 1-23, February.
    8. Li, Na & Zhang, Yue & Teng, De & Kong, Nan, 2021. "Pareto optimization for control agreement in patient referral coordination," Omega, Elsevier, vol. 101(C).
    9. Yong Tian & Bojia Ye & Marc Sáez Estupiñá & Lili Wan, 2018. "Stochastic Simulation Optimization for Route Selection Strategy Based on Flight Delay Cost," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(06), pages 1-24, December.
    10. P. Troy & N. Lahrichi & D. Porubska & L. Rosenberg, 2020. "Fine-grained simulation optimization for the design and operations of a multi-activity clinic," Flexible Services and Manufacturing Journal, Springer, vol. 32(3), pages 599-628, September.
    11. Lingxuan Liu & Leyuan Shi, 2019. "Simulation Optimization on Complex Job Shop Scheduling with Non-Identical Job Sizes," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 36(05), pages 1-26, October.
    12. Giulia Pedrielli & K. Selcuk Candan & Xilun Chen & Logan Mathesen & Alireza Inanalouganji & Jie Xu & Chun-Hung Chen & Loo Hay Lee, 2019. "Generalized Ordinal Learning Framework (GOLF) for Decision Making with Future Simulated Data," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 36(06), pages 1-35, December.
    13. Hainan Guo & Haobin Gu & Yu Zhou & Jiaxuan Peng, 2022. "A data-driven multi-fidelity simulation optimization for medical staff configuration at an emergency department in Hong Kong," Flexible Services and Manufacturing Journal, Springer, vol. 34(2), pages 238-262, June.
    14. Yu Zhao & Xi Zhang & Zhongshun Shi & Lei He, 2017. "Grain Price Forecasting Using a Hybrid Stochastic Method," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 34(05), pages 1-24, October.
    15. Wentao Wu & Wai Kin Victor Chan & Lei Chi & Zhiguo Gong, 2017. "Identifying a Set of Key Members in Social Networks Using SDP-Based Stochastic Search and Integer Programming Algorithms," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 34(03), pages 1-22, June.
    16. Wang, Tianxiang & Xu, Jie & Hu, Jian-Qiang & Chen, Chun-Hung, 2023. "Efficient estimation of a risk measure requiring two-stage simulation optimization," European Journal of Operational Research, Elsevier, vol. 305(3), pages 1355-1365.
    17. Pedrielli, Giulia & Wang, Songhao & Ng, Szu Hui, 2020. "An extended Two-Stage Sequential Optimization approach: Properties and performance," European Journal of Operational Research, Elsevier, vol. 287(3), pages 929-945.
    18. Miranda, Rafael de Carvalho & Montevechi, José Arnaldo Barra & da Silva, Aneirson Francisco & Marins, Fernando Augusto Silva, 2017. "Increasing the efficiency in integer simulation optimization: Reducing the search space through data envelopment analysis and orthogonal arrays," European Journal of Operational Research, Elsevier, vol. 262(2), pages 673-681.
    19. Siyang Gao & Weiwei Chen & Leyuan Shi, 2017. "A New Budget Allocation Framework for the Expected Opportunity Cost," Operations Research, INFORMS, vol. 65(3), pages 787-803, June.
    20. Qi Zhang & Jiaqiao Hu, 2019. "Simulation Optimization Using Multi-Time-Scale Adaptive Random Search," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 36(06), pages 1-34, December.
    21. Robert Cuckler & Kuo-Hao Chang & Liam Y. Hsieh, 2017. "Optimal Parallel Machine Allocation Problem in IC Packaging Using IC-PSO: An Empirical Study," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 34(06), pages 1-20, December.
    22. Jianpei Wen & Hanyu Jiang & Jie Song, 2019. "A Stochastic Queueing Model for Capacity Allocation in the Hierarchical Healthcare Delivery System," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 36(01), pages 1-24, February.
    23. Pai Liu & Xi Zhang & Zhongshun Shi & Zewen Huang, 2017. "Simulation Optimization for MRO Systems Operations," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 34(02), pages 1-23, April.

    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. KATHERINE CALVIN & MARSHALL WISE & DAVID KLEIN & DAVID McCOLLUM & MASSIMO TAVONI & BOB VAN DER ZWAAN & DETLEF P. VAN VUUREN, 2013. "A Multi-Model Analysis Of The Regional And Sectoral Roles Of Bioenergy In Near- And Long-Termco2emissions Reduction," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 4(04), pages 1-32.
    2. T. Kober & B. C. C. Van Der Zwaan & H. Rösler, 2014. "Emission Certificate Trade And Costs Under Regional Burden-Sharing Regimes For A 2°C Climate Change Control Target," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-32.
    3. Nagaratnam Jeyasreedharan & David E Allen & Joey Wenling Yang, 2014. "Yet Another Acd Model: The Autoregressive Conditional Directional Duration (Acdd) Model," Annals of Financial Economics (AFE), World Scientific Publishing Co. Pte. Ltd., vol. 9(01), pages 1-20.
    4. Marc S. Paolella, 2014. "Fast Methods For Large-Scale Non-Elliptical Portfolio Optimization," Annals of Financial Economics (AFE), World Scientific Publishing Co. Pte. Ltd., vol. 9(02), pages 1-32.
    5. Tien V. Do & Patrick Wüchner & Tamás Bérczes & János Sztrik & Hermann De Meer, 2014. "A New Finite-Source Queueing Model For Mobile Cellular Networks Applying Spectrum Renting," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 31(02), pages 1-19.
    6. R. S. Samian & A. Abbassi & J. Ghazanfarian, 2014. "Transient conduction simulation of a nano-scale hotspot using finite volume lattice Boltzmann method," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 25(04), pages 1-15.
    7. B. C. C. VAN DER ZWAAN & H. RÖSLER & T. KOBER & T. ABOUMAHBOUB & K. V. CALVIN & D. E. H. J. GERNAAT & G. MARANGONI & D. McCOLLUM, 2013. "A Cross-Model Comparison Of Global Long-Term Technology Diffusion Under A 2°C Climate Change Control Target," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 4(04), pages 1-24.
    8. R. Alexander Bentley & Paul Ormerod, 2012. "Accelerated Innovation And Increased Spatial Diversity Of Us Popular Culture," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 15(01n02), pages 1-13.
    9. Bruno Galantucci & Gareth Roberts, 2012. "Experimental Semiotics: An Engine Of Discovery For Understanding Human Communication," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 15(03n04), pages 1-13.
    10. Fang Huang & John Rice, 2012. "Openness In Product And Process Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 1-24.
    11. Hanna Bahemia & Brian Squire, 2010. "A Contingent Perspective Of Open Innovation In New Product Development Projects," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 14(04), pages 603-627.
    12. Mushtaq, Faisal & Mat, Ramli & Ani, Farid Nasir, 2014. "A review on microwave assisted pyrolysis of coal and biomass for fuel production," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 555-574.
    13. Janine Hiller, 2013. "The Benefit Corporation and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 118(2), pages 287-301, December.
    14. Eric R. Sims, 2016. "Differences in Quarterly Utilization-Adjusted TFP by Vintage, with an Application to News Shocks," NBER Working Papers 22154, National Bureau of Economic Research, Inc.
    15. Zhao-Long Hu & Zhuo-Ming Ren & Guang-Yong Yang & Jian-Guo Liu, 2014. "Effects of multiple spreaders in community networks," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 25(05), pages 1-8.
    16. Gnann, Till & Plötz, Patrick & Kühn, André & Wietschel, Martin, 2015. "Modelling market diffusion of electric vehicles with real world driving data – German market and policy options," Transportation Research Part A: Policy and Practice, Elsevier, vol. 77(C), pages 95-112.
    17. Christina Grundström & Roland Sjöström & Anders Uddenberg & Anna Öhrwall Rönnbäck, 2012. "FAST-GROWING SMEs AND THE ROLE OF INNOVATION," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 16(03), pages 1-19.
    18. Brian Gill & Julie Bruch & Kevin Booker, 2013. "Using Alternative Student Growth Measures for Evaluating Teacher Performance: What the Literature Says," Mathematica Policy Research Reports 85b7a88ce0cf4597a7efd7a21, Mathematica Policy Research.
    19. Ali, Merima & Fjeldstad, Odd-Helge & Sjursen, Ingrid Hoem, 2014. "To Pay or Not to Pay? Citizens’ Attitudes Toward Taxation in Kenya, Tanzania, Uganda, and South Africa," World Development, Elsevier, vol. 64(C), pages 828-842.
    20. Alex Coad & Julian Frankish & Paul Nightingale & Richard Roberts, 2014. "Business experience and start-up size: Buying more lottery tickets next time around?," Small Business Economics, Springer, vol. 43(3), pages 529-547, October.

    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:wsi:apjorx:v:32:y:2015:i:03:n:s0217595915500190. 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: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/apjor/apjor.shtml .

    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.