Iterative optimization and simulation of barge traffic on an inland waterway

We describe an iterative technique between optimization and simulation models used to determine solutions to optimization problems and ensure that the solutions are feasible for real world operations (in terms of a simulation model). The technique allows for the development of separate optimization and simulation models with varying levels of detail in each model. The results and parameters of the optimization model are used as input to the simulation model. The performance measures from the simulation output are compared to acceptable levels. These performance measures are then used to modify the optimization model if the simulation results are not acceptable. This iterative approach continues until an acceptable solution is reached. This iterative technique is applied to barge traffic on an inland waterway as an example. Linear programming is used as the optimization technique for the example while a simulation model is developed using Arena software.