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We propose a formulation for approximate constrained nonlinear output-feedback stochastic model predictive control. Starting from the ideal but intractable stochastic optimal control problem (OCP), which involves the optimization over…

Optimization and Control · Mathematics 2023-01-10 Florian Messerer , Katrin Baumgärtner , Moritz Diehl

We consider the problem of finding optimal strategies that maximize the average growth-rate of multiplicative stochastic processes. For a geometric Brownian motion the problem is solved through the so-called Kelly criterion, according to…

Portfolio Management · Quantitative Finance 2016-08-31 Francesco Caravelli , Lorenzo Sindoni , Fabio Caccioli , Cozmin Ududec

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

This paper deals with the problem of measurable lifting modification for stochastic processes in its most general form and with the 'product lifting problem'. Solutions to the positive are reduced to the existence of marginals with respect…

Probability · Mathematics 2019-01-28 N. D. Macheras , W. Strauss

Autonomous systems have witnessed a rapid increase in their capabilities, but it remains a challenge for them to perform tasks both effectively and safely. The fact that performance and safety can sometimes be competing objectives renders…

Systems and Control · Electrical Eng. & Systems 2024-12-04 Hao Wang , Adityaya Dhande , Somil Bansal

We show that the value function of a stochastic control problem is the unique solution of the associated Hamilton-Jacobi-Bellman (HJB) equation, completely avoiding the proof of the so-called dynamic programming principle (DPP). Using…

Probability · Mathematics 2013-09-25 Erhan Bayraktar , Mihai Sirbu

We consider the classical machine scheduling, where $n$ jobs need to be scheduled on $m$ machines, and where job $j$ scheduled on machine $i$ contributes $p_{i,j}\in \mathbb{R}$ to the load of machine $i$, with the goal of minimizing the…

Computer Science and Game Theory · Computer Science 2020-09-09 Cong Chen , Paul Giessler , Akaki Mamageishvili , Matus Mihalak , Paolo Penna

We examine a standard factory scheduling problem with stochastic processing and setup times, minimizing the expectation of the weighted number of tardy jobs. Because the costs of operators in the schedule are stochastic and sequence…

Artificial Intelligence · Computer Science 2013-02-18 Peter R. Wurman , Michael P. Wellman

Warehouses are nowadays the scene of complex logistic problems integrating different decision layers. This paper addresses the Joint Order Batching, Picker Routing and Sequencing Problem with Deadlines (JOBPRSP-D) in rectangular warehouses.…

Optimization and Control · Mathematics 2023-07-04 Olivier Briant , Hadrien Cambazard , Diego Cattaruzza , Nicolas Catusse , Anne-Laure Ladier , Maxime Ogier

We investigate constrained optimal control problems for linear stochastic dynamical systems evolving in discrete time. We consider minimization of an expected value cost over a finite horizon. Hard constraints are introduced first, and then…

Optimization and Control · Mathematics 2011-07-07 Eugenio Cinquemani , Mayank Agarwal , Debasish Chatterjee , John Lygeros

This paper studies an optimal dividend problem with a drawdown constraint in a Brownian motion model, requiring the dividend payout rate to remain above a fixed proportion of its historical maximum. This leads to a path-dependent stochastic…

Mathematical Finance · Quantitative Finance 2026-01-08 Chonghu Guan , Jiacheng Fan , Zuo Quan Xu

In a facility with front room and back room operations, it is useful to switch workers between the rooms in order to cope with changing customer demand. Assuming stochastic customer arrival and service times, we seek a policy for switching…

Artificial Intelligence · Computer Science 2011-11-02 Daria Terekhov , J. Christopher Beck

In this paper we introduce a completely continuous and time-variate model of the evolution of market limit orders based on the existence, uniqueness, and regularity of the solutions to a type of stochastic partial differential equations…

Trading and Market Microstructure · Quantitative Finance 2012-10-29 Zhi Zheng , Richard B. Sowers

The problem of appropriately matching items subject to compatibility constraints arises in a number of important applications. While most of the literature on matching theory focuses on a static setting with a fixed number of items, several…

Probability · Mathematics 2022-01-04 Céline Comte

While executives emphasize that human resources (HR) are a firm's biggest asset, the level of research attention devoted to planning talent pipelines for complex global organizational environments does not reflect this emphasis. Numerous…

Optimization and Control · Mathematics 2017-08-08 Hadi Moheb-Alizadeh , Robert B. Handfield

This work introduces a stochastic model predictive control scheme for dynamic chance constraints. We consider linear discrete-time systems affected by unbounded additive stochastic disturbance. To synthesize an optimal controller, we solve…

Systems and Control · Electrical Eng. & Systems 2023-07-26 Maico Hendrikus Wilhelmus Engelaar , Sofie Haesaert , Mircea Lazar

Model predictive control solves a constrained optimization problem online in order to compute an implicit closed-loop control policy. Recursive feasibility -- guaranteeing that the optimal control problem will have a solution at every time…

Optimization and Control · Mathematics 2024-10-16 Jacob W. Knaup , Panagiotis Tsiotras

A key trait of stochastic optimizers is that multiple runs of the same optimizer in attempting to solve the same problem can produce different results. As a result, their performance is evaluated over several repeats, or runs, on the…

Machine Learning · Computer Science 2026-05-18 Moslem Noori , Elisabetta Valiante , Thomas Van Vaerenbergh , Masoud Mohseni , Ignacio Rozada

A new formulation of Stochastic Model Predictive Output Feedback Control is presented and analyzed as a translation of Stochastic Optimal Output Feedback Control into a receding horizon setting. This requires lifting the design into a…

Optimization and Control · Mathematics 2020-05-01 Martin A Sehr , Robert R Bitmead

We solve a sequential decision-making problem under uncertainty that takes into account the failure probability of a task. This problem cannot be handled by the stochastic shortest path problem, which is the standard model for sequential…

Optimization and Control · Mathematics 2024-09-26 Ritsusamuel Otsubo
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