A modelling approach in which optimisation is used to design operating rules or expansion plans and simulation is then used to test their performance.
The integrated simulation–optimisation framework combines the strengths of both optimisation and simulation. Optimisation models are used to generate candidate operating rules or development plans subject to constraints, while simulation models replay inflow and demand sequences to check reliability, costs and other indicators. PWSC tools typically use this combination rather than relying on either technique in isolation.