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Multistage stochastic programming deals with operational and planning problems that involve a sequence of decisions over time while responding to realizations that are uncertain. Algorithms designed to address multistage stochastic linear…

Optimization and Control · Mathematics 2020-10-26 Harsha Gangammanavar , Suvrajeet Sen

In this work, we study how to efficiently apply reinforcement learning (RL) for solving large-scale stochastic optimization problems by leveraging intervention models. The key of the proposed methodology is to better explore the solution…

Machine Learning · Computer Science 2026-01-13 Defeng Liu , Ying Liu , Carson Eisenach

To model combinatorial decision problems involving uncertainty and probability, we introduce scenario based stochastic constraint programming. Stochastic constraint programs contain both decision variables, which we can set, and stochastic…

Artificial Intelligence · Computer Science 2009-03-09 S. Armagan Tarim , Suresh Manandhar , Toby Walsh

We pose the decumulation strategy for a Defined Contribution (DC) pension plan as a problem in optimal stochastic control. The controls are the withdrawal amounts and the asset allocation strategy. We impose maximum and minimum constraints…

Computational Finance · Quantitative Finance 2020-08-18 Peter A. Forsyth

We consider a fundamental dynamic allocation problem motivated by the problem of $\textit{securities lending}$ in financial markets, the mechanism underlying the short selling of stocks. A lender would like to distribute a finite number of…

Computer Science and Game Theory · Computer Science 2019-12-16 Emily Diana , Michael Kearns , Seth Neel , Aaron Roth

In this paper we present a dynamic programing approach to stochastic optimal control problems with dynamic, time-consistent risk constraints. Constrained stochastic optimal control problems, which naturally arise when one has to consider…

Optimization and Control · Mathematics 2015-11-24 Yin-Lam Chow , Marco Pavone

We study risk-aware linear policy approximations for the optimal operation of an energy system with stochastic wind power, storage, and limited fuel. The resulting problem is a sequential decision-making problem with rolling forecasts. In…

Systems and Control · Electrical Eng. & Systems 2024-07-19 Thomas Mortimer , Robert Mieth

We study a stochastic control approach to managed futures portfolios. Building on the Schwartz 97 stochastic convenience yield model for commodity prices, we formulate a utility maximization problem for dynamically trading a single-maturity…

Mathematical Finance · Quantitative Finance 2018-11-06 Tim Leung , Raphael Yan

The dynamic portfolio optimization problem in finance frequently requires learning policies that adhere to various constraints, driven by investor preferences and risk. We motivate this problem of finding an allocation policy within a…

Artificial Intelligence · Computer Science 2020-12-23 Nymisha Bandi , Theja Tulabandhula

We consider the problem of optimally controlling stochastic, Markovian systems subject to joint chance constraints over a finite-time horizon. For such problems, standard Dynamic Programming is inapplicable due to the time correlation of…

Optimization and Control · Mathematics 2024-11-22 Niklas Schmid , Marta Fochesato , Sarah H. Q. Li , Tobias Sutter , John Lygeros

We formulate selecting the best optimizing system (SBOS) problems and provide solutions for those problems. In an SBOS problem, a finite number of systems are contenders. Inside each system, a continuous decision variable affects the…

Methodology · Statistics 2025-11-04 Nian Si , Yifu Tang , Zeyu Zheng

In many resource allocation problems, a centralized controller needs to award some resource to a user selected from a collection of distributed users with the goal of maximizing the utility the user would receive from the resource. This can…

Information Theory · Computer Science 2016-04-20 Bradford D. Boyle , Jie Ren , John MacLaren Walsh , Steven Weber

Due to numerous applications in retail and (online) advertising the problem of assortment selection has been widely studied under many combinations of discrete choice models and feasibility constraints. In many situations, however, an…

Data Structures and Algorithms · Computer Science 2023-08-11 Vineet Goyal , Salal Humair , Orestis Papadigenopoulos , Assaf Zeevi

We consider stochastic optimization problems with the dual tasks of (i) effectively finding the optimizer and (ii) reliably conducting statistical inference for the optimal objective function value. We find that classical simulation…

Methodology · Statistics 2025-09-15 Yuhang Wu , Zeyu Zheng , Yingfei Wang , Guangyu Zhang , Zuohua Zhang , Chu Wang

To model combinatorial decision problems involving uncertainty and probability, we introduce stochastic constraint programming. Stochastic constraint programs contain both decision variables (which we can set) and stochastic variables…

Artificial Intelligence · Computer Science 2009-03-09 Toby Walsh

While scaling laws guide compute allocation for LLM pre-training, analogous prescriptions for reinforcement learning (RL) post-training of large language models (LLMs) remain poorly understood. We study the compute-optimal allocation of…

In this paper, we analyze the optimal management of local memory systems, using the tools of stationary point processes. We provide a rigorous setting of the problem, building upon recent work, and characterize the optimal causal policy…

Probability · Mathematics 2024-12-03 Matias Carrasco , Andres Ferragut , Fernando Paganini

One of the problems faced by a firm that sells certain commodities is to determine the number of products that it must supply in order to maximize its profit. In this article, the authors give an answer to this problem of economic interest.…

General Finance · Quantitative Finance 2016-05-10 Dragos-Patru Covei

We provide an overview on how to use the measurable selection techniques to derive the dynamic programming principle for a general stochastic optimal control/stopping problem. By considering its martingale problem formulation on the…

Optimization and Control · Mathematics 2024-10-03 Nicole El Karoui , Xiaolu Tan

Under a Bayesian framework, we formulate the fully sequential sampling and selection decision in statistical ranking and selection as a stochastic control problem, and derive the associated Bellman equation. Using value function…

Machine Learning · Computer Science 2017-10-10 Yijie Peng , Edwin K. P. Chong , Chun-Hung Chen , Michael C. Fu