When you have a working simulation project, you can run an Optimization to analyze the potential of your business.
Simply define the variable in the model that represents your target KPI. Then identify the variables which are the decisions you are in charge of varying and define the range they may change within.
Next, set various parameters for the optimization process, in effect deciding how many times to run your simulation during optimization; the more simulations, the more combinations of decision values will be tried out. The evolutionary search algorithm of the Optimization then finds the decisions that give a result closest to the target KPI.
Optimization is a built-in feature of Powersim Studio and is available by a click on a button:
Optimization will give answers as to whether your organization's targets can be reached by the strategies defined in your simulation model.
In the below example, a Marketing simulation model analyzes how well a new product would be received into a growing market. The organization may use many types of campaigns to reach new customers and assumptions are also made about competitors.
A Marketing Simulation model
Up to a certain point the model runs historical data, but after this point an Optimization is perfomed to select the best price and campaign strategy for reaching the revenue target defined by management. The green curves above illustrate the final results found by the Optimization process.
Benefits from using Optimization