Related papers: Pricing service maintenance contracts using predic…
The research area of algorithms with predictions has seen recent success showing how to incorporate machine learning into algorithm design to improve performance when the predictions are correct, while retaining worst-case guarantees when…
Industrial sensor data provides significant insights into the failure risks of microgrid generation assets. In traditional applications, these sensor-driven risks are used to generate alerts that initiate maintenance actions without…
Predictive maintenance in manufacturing environments presents a challenging optimization problem characterized by extreme cost asymmetry, where missed failures incur costs roughly fifty times higher than false alarms. Predictive maintenance…
Implementing an appropriate maintenance policy would help us to have a more reliable system and reduce the total costs. In this paper, a dynamic maintenance plan is proposed for repairable multi-component systems, where each component is…
Extended warranties (EWs) constitute a significant source of revenue for capital-intensive products. Such products comprise multiple subsystems, enabling flexible EW design. For example, providers can bundle tailored sets of subsystems…
This paper considers the optimal portfolio selection problem in a dynamic multi-period stochastic framework with regime switching. The risk preferences are of exponential (CARA) type with an absolute coefficient of risk aversion which…
This paper proposes a novel tariff scheme and a new optimization framework in order to address the recovery of fixed investment costs in transmission network planning, particularly against rising demand elasticity. At the moment, ex-post…
Autonomous agents that operate in the real world must often deal with partial observability, which is commonly modeled as partially observable Markov decision processes (POMDPs). However, traditional POMDP models rely on the assumption of…
As more and more users begin to use the cloud for their computing needs, datacenter operators are increasingly pressed to effectively allocate their resources among these client users. Yet while much work has been done in this area,…
In the present work we tackle the problem of finding the optimal price tariff to be set by a risk-averse electric retailer participating in the pool and whose customers are price-sensitive. We assume that the retailer has access to a…
We consider a physical asset consisting of complex systems, where the systems may require upgrades during the lifetime of the asset. In practice, the asset owner and system supplier can make the upgrade decisions together, requiring a…
Unexpected advertising items in sponsored search may reduce users' reliance on organic search, resulting in hidden cost for the e-commerce platform. To address this problem and promote sustainable growth, we propose a dynamic reserve price…
Understanding performance and prioritizing resources for the maintenance of the drinking-water pipe network throughout its life-cycle is a key part of water asset management. Renovation of this vital network is generally hindered by the…
In environments with increasing uncertainty, such as smart grid applications based on renewable energy, planning can benefit from incorporating forecasts about the uncertainty and from systematically evaluating the utility of the forecast…
Two firms are engaged in a competitive prediction task. Each firm has two sources of data -- labeled historical data and unlabeled inference-time data -- and uses the former to derive a prediction model, and the latter to make predictions…
It becomes a significant challenge to predict customer behavior and retain an existing customer with the rapid growth of digitization which opens up more opportunities for customers to choose from subscription-based products and services…
We develop a parsimonious model of an e-commerce fulfillment center that offers time-dependent shipment options and corresponding fees to utility-maximizing customers arriving according to a Poisson process. For any such policy, we provide…
This study investigates the integration of forecasting and optimization in energy management systems, with a focus on the role of switching costs -- penalties incurred from frequent operational adjustments. We develop a theoretical and…
We propose an enhancement to wholesale electricity markets whereby the exposure of consumers to increasingly large and volatile consumer payments arising as a byproduct of volatile real-time net loads -- i.e., loads minus renewable outputs…
Predicting the remaining useful life of machinery, infrastructure, or other equipment can facilitate preemptive maintenance decisions, whereby a failure is prevented through timely repair or replacement. This allows for a better decision…