Application of central composite design to simulation experiment

  • Authors:
  • Chi-Myung Kwon

  • Affiliations:
  • Hadan-Dong 840, Saha-Gu, Division of MIS, Dong-A University, Pusan, Korea

  • Venue:
  • AsiaSim'04 Proceedings of the Third Asian simulation conference on Systems Modeling and Simulation: theory and applications
  • Year:
  • 2004

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Abstract

This paper proposes a strategy using the common random numbers and antithetic variates in simulation experiments that utilize the central composite design for estimating the second-order model. This strategy assigns the common random numbers to the cubic points and a center, and the antithetic variates to the axial points and one center. An appropriate selection of the axial points allows this strategy to achieve variance reduction in estimation of first and second order coefficients of a given model. Under certain conditions, the proposed method yields better estimates for the model parameters than independent streams. In estimation of the intercept, independent random number assignment strategy shows better results than the proposed strategy. The simulation experiments on the (s, S) inventory system supports such results.