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Evaluating the quality of online optimization algorithms by discrete event simulation

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Abstract

A key feature of dynamic problems which offer degrees of freedom to the decision maker is the necessity for a goal-oriented decision making routine which is employed every time the logic of the system requires a decision. In this paper, we look at optimization procedures which appear as subroutines in dynamic problems and show how discrete event simulation can be used to assess the quality of algorithms: after establishing a general link between online optimization and discrete event systems, we address performance measurement in dynamic settings and derive a corresponding tool kit. We then analyze several control strategies using the methodologies discussed previously in two real world examples of discrete event simulation models: a manual order picking system and a pickup and delivery service.

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Authors and Affiliations

  1. Institute of Operations Research, Discrete Optimization and Logistics, Karlsruhe Institute of Technology, Kaiserstr. 12, 76131, Karlsruhe, Germany

    Fabian Dunke & Stefan Nickel

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  1. Fabian Dunke
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  2. Stefan Nickel
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Correspondence to Fabian Dunke.

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Dunke, F., Nickel, S. Evaluating the quality of online optimization algorithms by discrete event simulation. Cent Eur J Oper Res 25, 831–858 (2017). https://doi.org/10.1007/s10100-016-0455-6

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