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Multi-stage stochastic optimization lies at the core of decision-making under uncertainty. As the analytical solution is available only in exceptional cases, dynamic optimization aims to efficiently find approximations but often neglects…

Optimization and Control · Mathematics 2025-08-26 Anna Timonina-Farkas

We propose a hybrid algorithmic strategy for complex stochastic optimization problems, which combines the use of scenario trees from multistage stochastic programming with machine learning techniques for learning a policy in the form of a…

Optimization and Control · Mathematics 2019-10-25 Boris Defourny , Damien Ernst , Louis Wehenkel

Optimizing decision problems under uncertainty can be done using a variety of solution methods. Soft computing and heuristic approaches tend to be powerful for solving such problems. In this overview article, we survey Evolutionary…

Neural and Evolutionary Computing · Computer Science 2014-01-21 Ronald Hochreiter

Many real-world problems require making sequences of decisions where the outcomes of each decision are probabilistic and uncertain, and the availability of different actions is constrained by the outcomes of previous actions. There is a…

Optimization and Control · Mathematics 2025-04-28 Berk Ozturk , She'ifa Punla-Green , Les Servi

We introduce the class of multistage stochastic optimization problems with a random number of stages. For such problems, we show how to write dynamic programming equations and detail the Stochastic Dual Dynamic Programming algorithm to…

Optimization and Control · Mathematics 2019-07-18 Vincent Guigues

Stochastic forecasting is critical for efficient decision-making in uncertain systems, such as energy markets and finance, where estimating the full distribution of future scenarios is essential. We propose Diffusion Scenario Tree (DST), a…

Machine Learning · Computer Science 2026-02-16 Stelios Zarifis , Ioannis Kordonis , Petros Maragos

We present new algorithms and fast implementations to find efficient approximations for modelling stochastic processes. For many numerical computations it is essential to develop finite approximations for stochastic processes. While the…

Optimization and Control · Mathematics 2020-12-03 Kipngeno Benard Kirui , Georg Ch. Pflug , Alois Pichler

Most decision-focused learning work has focused on single stage problems whereas many real-world decision problems are more appropriately modelled using multistage optimisation. In multistage problems contextual information is revealed over…

Optimization and Control · Mathematics 2025-05-29 Egon Peršak , Miguel F. Anjos

As net-load becomes less predictable there is a lot of pressure in changing decision models for power markets such that they account explicitly for future scenarios in making commitment decisions. This paper proposes to make commitment…

Optimization and Control · Mathematics 2016-12-21 Bita Analui , Anna Scaglione

We introduce Multistage Conditional Compositional Optimization (MCCO) as a new paradigm for decision-making under uncertainty that combines aspects of multistage stochastic programming and conditional stochastic optimization. MCCO minimizes…

Optimization and Control · Mathematics 2026-04-16 Buse Şen , Yifan Hu , Daniel Kuhn

We consider a risk-averse stochastic capacity planning problem under uncertain demand in each period. Using a scenario tree representation of the uncertainty, we formulate a multistage stochastic integer program to adjust the capacity…

Optimization and Control · Mathematics 2024-11-05 Xian Yu , Siqian Shen

We study contextual stochastic optimization problems, where we leverage rich auxiliary observations (e.g., product characteristics) to improve decision making with uncertain variables (e.g., demand). We show how to train forest decision…

Optimization and Control · Mathematics 2022-03-17 Nathan Kallus , Xiaojie Mao

We propose a (seemingly) new computationally tractable model for multi-stage decision making under stochastic uncertainty.

Optimization and Control · Mathematics 2019-12-10 Arkadi Nemirovski

This paper introduces a node formulation for multistage stochastic programs with endogenous (i.e., decision-dependent) uncertainty. Problems with such structure arise when the choices of the decision maker determine a change in the…

Optimization and Control · Mathematics 2021-03-05 Giovanni Pantuso

Most decision tree induction algorithms are based on a greedy top-down recursive partitioning strategy for tree growth. In this paper, we propose several methods for induction of decision trees and their ensembles based on evolutionary…

Neural and Evolutionary Computing · Computer Science 2020-02-04 Evgeny Dolotov , Nikolai Zolotykh

Optimization via simulation has been well established to find optimal solutions and designs in complex systems. However, it still faces modeling and computational challenges when extended to the multi-stage setting. This survey reviews the…

Optimization and Control · Mathematics 2023-12-08 Zhuo Zhang , Dan Wang , Haoxiang Yang , Shubin Si

Multi-stage decision-making under uncertainty, where decisions are taken under sequentially revealing uncertain problem parameters, is often essential to faithfully model managerial problems. Given the significant computational challenges…

Optimization and Control · Mathematics 2026-04-30 Simon Thomä , Maximilian Schiffer , Wolfram Wiesemann

Many real-world decision-making problems involve multiple decision-making stages and various objectives. Besides, most of the decisions need to be made before having complete knowledge about all aspects of the problem leaves some sort of…

Optimization and Control · Mathematics 2025-08-06 Babooshka Shavazipour , Theodor J. Stewart

Decisions for a variable renewable resource generators commitment in the energy market are typically made in advance when little information is obtainable about wind availability and market prices. Much research has been published…

Optimization and Control · Mathematics 2021-03-09 Razan A. H. Al-Lawati , Jose L. Crespo-Vazquez , Tasnim Ibn Faiz , Xin Fang , Md. Noor-E-Alam

The most common approaches for solving multistage stochastic programming problems in the research literature have been to either use value functions ("dynamic programming") or scenario trees ("stochastic programming") to approximate the…

Optimization and Control · Mathematics 2022-01-04 Warren B Powell , Saeed Ghadimi
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