Simheuristics applications: Dealing with uncertainty in logistics, transportation, and other supply chain areas

Abstract

Optimization problems arising in real-life transportation and logistics need to consider uncertainty conditions (e.g., stochastic travel times, etc.). Simulation is employed in the analysis of complex systems under such non-deterministic environments. However, simulation is not an optimization tool, so it needs to be combined with optimization methods whenever the goal is to: (i) maximize the system performance using limited resources; or (ii) minimize its operations cost while guaranteeing a given quality of service. When the underlying optimization problem is NP-hard, metaheuristics are required to solve large-scale instances in reasonable computing times. Simheuristics extend metaheuristics by adding a simulation layer that allows the optimization component to deal with scenarios under uncertainty. This paper reviews both initial as well as recent applications of simheuristics, mainly in the area of logistics and transportation. The paper also discusses current trends and open research lines in this field.