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This thesis mainly focuses on two problems in capital structure and individual's life-cycle portfolio choice. In the first problem, we derive a stochastic control model to optimize banks' dividend and recapitalization policies and calibrate…

Mathematical Finance · Quantitative Finance 2021-07-07 Shan Huang

This paper presents a general class of dynamic stochastic optimization problems we refer to as Stochastic Depletion Problems. A number of challenging dynamic optimization problems of practical interest are stochastic depletion problems.…

Optimization and Control · Mathematics 2008-01-25 Carri W. Chan , Vivek F. Farias

We consider the dynamic inventory problem with non-stationary demands. It has long been known that non-stationary (s, S) policies are optimal for this problem. However, finding optimal policy parameters remains a computational challenge as…

Optimization and Control · Mathematics 2020-07-20 Onur A. Kilic , S. Armagan Tarim

In this paper, we address the joint optimization of fleet size and mix, along with vehicle routing, under uncertain customer demand. We propose a two-stage stochastic mixed-integer programming model, where first-stage decisions concern the…

Optimization and Control · Mathematics 2025-12-11 Paolo Beatrici , Sebastian Birolini , Francesca Maggioni , Paolo Malighetti

We study how to unwind stochastic order flow with minimal transaction costs. Stochastic order flow arises, e.g., in the central risk book (CRB), a centralized trading desk that aggregates order flows within a financial institution. The desk…

Trading and Market Microstructure · Quantitative Finance 2025-11-14 Marcel Nutz , Kevin Webster , Long Zhao

In this paper we study the single-item revenue management problem, with no information given about the demand trajectory over time. When the item is sold through accepting/rejecting different fare classes, Ball and Queyranne (2009) have…

Data Structures and Algorithms · Computer Science 2020-01-20 Will Ma , David Simchi-Levi , Chung-Piaw Teo

In this paper, we employ the Heston stochastic volatility model to describe the stock's volatility and apply the model to derive and analyze the optimal trading strategies for dealers in a security market. We also extend our study to option…

Trading and Market Microstructure · Quantitative Finance 2016-02-02 Wai-Ki Ching , Jia-Wen Gu , Tak-Kuen Siu , Qing-Qing Yang

Truckload procurement plays a vital role in integrated container logistics, particularly under the uncertainties of container flow and market conditions. We formulate the operational volume allocation problem in drayage procurement as a…

Optimization and Control · Mathematics 2025-05-06 Georgios Vassos , Richard Lusby , Pierre Pinson

Many problems in Reinforcement Learning (RL) seek an optimal policy with large discrete multidimensional yet unordered action spaces; these include problems in randomized allocation of resources such as placements of multiple security…

Machine Learning · Computer Science 2023-11-28 Changyu Chen , Ramesha Karunasena , Thanh Hong Nguyen , Arunesh Sinha , Pradeep Varakantham

In this paper, we present long-awaited algorithmic advances toward the efficient construction of near-optimal replenishment policies for a true inventory management classic, the economic warehouse lot scheduling problem. While this paradigm…

Data Structures and Algorithms · Computer Science 2026-01-23 Danny Segev

We consider assortment optimization over a continuous spectrum of products represented by the unit interval, where the seller's problem consists of determining the optimal subset of products to offer to potential customers. To describe the…

Machine Learning · Statistics 2021-04-15 Yannik Peeters , Arnoud V. den Boer , Michel Mandjes

This research presents the development of a new simulation model to determine the optimal order lot sizes in Material Requirements Planning, based on purchase volume and the temporal deterioration of items. The scientific novelty lies in…

In this work we focus on efficient heuristics for solving a class of stochastic planning problems that arise in a variety of business, investment, and industrial applications. The problem is best described in terms of future buy and sell…

Artificial Intelligence · Computer Science 2013-01-14 Milos Hauskrecht , Eli Upfal

This paper introduces an integrated lot sizing and scheduling problem inspired from a real-world application in off-the-road tire industry. This problem considers the assignment of different items on parallel machines with complex…

Optimization and Control · Mathematics 2022-01-24 Cyril Koch , Taha Arbaoui , Yassine Ouazene , Farouk Yalaoui , Humbert De Brunier , Nicolas Jaunet , Antoine De Wulf

Today's global supply chains face growing challenges due to rapidly changing market conditions, increased network complexity and inter-dependency, and dynamic uncertainties in supply, demand, and other factors. To combat these challenges,…

Optimization and Control · Mathematics 2025-02-18 Zhaoyang Larry Jin , Mehdi Maasoumy , Yimin Liu , Zeshi Zheng , Zizhuo Ren

We consider the problem of designing an expected-revenue maximizing mechanism for allocating multiple non-perishable goods of $k$ varieties to flexible consumers over $T$ time steps. In our model, a random number of goods of each variety…

Computer Science and Game Theory · Computer Science 2020-07-08 Shiva Navabi , Ashutosh Nayyar

We consider the problem of dynamic buying and selling of shares from a collection of $N$ stocks with random price fluctuations. To limit investment risk, we place an upper bound on the total number of shares kept at any time. Assuming that…

Portfolio Management · Quantitative Finance 2009-09-23 Michael J. Neely

Stochastic matching is the stochastic version of the well-known matching problem, which consists in maximizing the rewards of a matching under a set of probability distributions associated with the nodes and edges. In most stochastic…

Optimization and Control · Mathematics 2024-05-01 Yuya Hikima , Yasunori Akagi , Hideaki Kim

This paper considers a stochastic production planning problem with regime switching. There are two regimes corresponding to different economic cycles. A factory is planning its production so as to minimize production costs. We analyze this…

Optimization and Control · Mathematics 2021-01-26 Elena Cristina Canepa , Dragos-Patru Covei , Traian A. Pirvu

We introduce a strategic decision-making problem faced by logistics providers (LPs) seeking facility location decisions that lead to profitable operations. The profitability depends on the revenue generated through agreements with shippers,…

Optimization and Control · Mathematics 2024-06-13 David Pinzon , Emma Frejinger , Bernard Gendron