Optimization of Simulated Inventory Systems: OptQuest and Alternatives

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Abstract

This article illustrates simulation optimization through an (s, S) inventory management system.In this system, the goal function to be minimized is the expected value of specific inventory costs.Moreover, specific constraints must be satisfied for some random simulation responses, namely the service or fill rate, and for some deterministic simulation inputs, namely the constraint s <S. Results are reported for three optimization methods, including the popular OptQuest method.The optimality of the resulting solutions is tested through the so-called Karesh-Kuhn-Tucker (KKT) conditions.
Original languageEnglish
Place of PublicationTilburg
PublisherOperations research
Number of pages14
Volume2006-75
Publication statusPublished - 2006

Publication series

NameCentER Discussion Paper
Volume2006-75

Keywords

  • OptQuest software
  • Response Surface Methodology
  • Karesh-Kuhn-Tucker conditions
  • service constrained inventory system

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