Yes. Also they use simulations for optimizing the open-loop guidance for the first part of flight for each payload and mission.
For each payload and mission??
What things are different for different payloads, except for mass (and CG)? Wouldn't it be sufficient to pre-calculate trajectories for a lot of different payload masses, and simply interpolate the results for a specific mission? Or is this simply a matter of "computers are cheap, so let's use them as much as possible"?
Some time ago I tried to make such an iterative ascend optimizing program, but I had lots of difficulties. One problem was that the derivatives of my result function (in-orbit-mass as function of the parameters of a parametrized ascend trajectory) had discontinuities, which disturbed my optimizing function.
I think it can be solved by using a different way of parameterizing the ascend trajectory. My way of parameterizing was to define the pitch at certain moments (e.g. at 100% fuel, 75% fuel, 50% fuel, 25% fuel and 0% fuel), and interpolate the pitch for all other moments. Maybe writing the pitch as a sum of sines and cosines would be better?
I guess this goes beyond the knowledge of the average Orbiter astronaut, but does anyone know what method the professionals use?