Simulation Optimization

Simulation optimization is a process that uses computer models to find the best solution for a complex problem. It involves running simulations—detailed virtual experiments—to evaluate different options or strategies. By analyzing the results, it identifies the most effective approach without needing to test everything in the real world. This method is useful in situations where real-world testing is costly, time-consuming, or difficult, such as in manufacturing, logistics, or healthcare. Essentially, simulation optimization helps decision-makers make informed choices by efficiently exploring multiple scenarios through virtual experimentation.