A VARIANCE‐REDUCTION STRATEGY FOR RSM SIMULATION STUDIES

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Abstract
The application of optimization techniques in digital simulation experiments is frequently complicated by the presence of large experimental error variances. Two of the more widely accepted design strategies for the resolution of this problem include the assignment of common pseudorandom number streams and the assignment of antithetic pseudorandom number streams to the experimental points. When considered separately, however, each of these variance‐reduction procedures has rather restrictive limitations. This paper examines the simultaneous use of these two techniques as a variance‐reduction strategy in response surface methodology (RSM) analysis of simulation models. A simulation of an inventory system is used to illustrate the application and benefits of this assignment procedure, as well as the basic components of an RSM analysis.