Description: Nested optimization is an approach in the field of model optimization that refers to an optimization problem containing another optimization problem within it. This type of problem is characterized by having multiple levels of decision-making, where the solution to one problem depends on the solution to another. In more technical terms, it can be described as a hierarchical problem, where decisions at a higher level influence decisions at lower levels. Nested optimization is particularly relevant in contexts where decisions must be made sequentially and where each decision can significantly affect the final outcome. This approach allows researchers and professionals to model complex situations where the interactions between different variables and decisions are crucial for achieving an optimal result. The formulation of these problems can be complex, as it requires consideration of multiple objectives and constraints, often involving the use of advanced mathematical programming techniques and optimization algorithms. Nested optimization is used in various disciplines, including operations research, economics, engineering, logistics, and artificial intelligence, where sequential decision-making is fundamental to the success of a project or system.
