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| Author: | Chick, S. E. Inoue, K. |
| Title: | New Procedures to Select the Best Simulated System Using Common Random Numbers |
| Journal: | Management Science
2001 : AUG, VOL. 47:8, p. 1133-1149 |
| Index terms: | COMPANY RANKING BAYESIAN STATISTICS SIMULATION SIMULATION MODELS |
| Language: | eng |
| Abstract: | This paper presents new two-stage procedures that use common random numbers to help identify the best simulated system. The procedures allow for screening and attempt to allocate additional replications to improve the value of information obtained during the second stage, rather than determining the number of replications required to provide a given probability of correct selection guarantee. The procedures allow decision makers to reduce either the expected opportunity cost associated with potentially selecting an inferior system, or the probability of incorrect selection. A small empirical study indicates that the new procedures outperform several procedures with respect to several criteria, and identifies potential areas for further improvement. |
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