Development of PSPO Simulation Optimization Algorithm

In this article a new algorithm is developed for optimizing computationally expensive simulation models. The optimization algorithm is developed for continues unconstrained single output simulation models. The algorithm is developed using two simulation optimization routines. We employed the nested partitioning (NP) routine for concentrating the search efforts in the regions which are most likely contained the global optimum, and we used the experimental design concept for selecting most promising points. Then we integrated the Particle Swarm Optimization (PSO) routine as the searching mechanism of the developed algorithm to single out the best point (optimal or a near optimal solution). Through these integrations, an algorithm was developed which is capable of optimizing digital simulation models. The efficiency of the developed algorithm was then evaluated through a computational experiment. Ten test problems were selected from the literature and the efficiency of the PSPO algorithm was compared by two well-known algorithms. The result of this experiment revealed that the developed algorithm provided a more accurate result comparing to these algorithms.