Modern Optimization and Simulation Methods in Managerial and Business Economics: A Review

Abstract

Managerial and Business Economics (ME/BE) aims at using quantitative and computational methods to make an efficient (ideally optimal) assignment of the scarce resources owned by firms and organizations. In the current global market, characterized by a fierce competition, an optimal use of the available resources is more important than ever for guaranteeing the economical sustainability of organizations and enterprises of any size. Heuristic optimization algorithms and simulation methods have been successfully employed to analyze and enhance complex systems and processes in a myriad of ME/BE-related fields. This paper reviews recent works on the use of these methodologies in competitive markets, as well as in imperfect markets considering externalities. The paper also discusses open challenges and how state-of-the art methods combining optimization, simulation, and machine learning can contribute to properly address them.

Impact of artificial intelligence on customer engagement and advertising engagement: A review and future research agenda

“…Some studies compared digital technologies, mainly AI‐based, and examined how they might be used to increase companies' knowledge of their customers and, subsequently, to analyse their impact on B2B markets (Bag et al, 2021; Calvet et al, 2020; Gupta et al, 2022). Today, digital mediation in B2B marketing, through the use of the internet, has been seen to have a positive effect on companies' knowledge of their customers' needs and wants (Durmaz & Efendioglu, 2016; Kumar et al, 2020); maintaining good quality communication channels with other firms, and with the final customer, is imperative (Kim & Moon, 2021).…”

“…Some studies compared digital technologies, mainly AI-based, and examined how they might be used to increase companies' knowledge of their customers and, subsequently, to analyse their impact on B2B markets (Bag et al, 2021;Calvet et al, 2020;Gupta et al, 2022).…”

Analysis of Modern Techniques for Software Optimization

“…Optimization and simulation methods are basically used in analyzing complex systems. Optimization methods allow one to obtain optimal or near-optimal solutions for complex decision making whereas simulation method are usually employed when the system is dynamic or the system behaviour is stochastic (Calvet et al 2020).…”

“…Various advantages and disadvantages of the different techniques were highlighted and suggestions made to enable the designer in picking the appropriate technique. Calvet et al (2020) in their paper reviewed that Heuristic optimization and simulation have been successfully employed in the analysis and enhancement of complex systems and also in processing a myriad of ME/BE 2 related fields. The paper further discusses how challenges and state-of-the-Art methods are combined with optimization, simulation and machine learning could contribute in better addressing them.…”