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This paper investigates a stochastic inventory management problem in which a cash-constrained small retailer periodically purchases a product from suppliers and sells it to a market while facing non-stationary demands. In each period, the…

Optimization and Control · Mathematics 2021-08-13 Zhen Chen , Roberto Rossi

How do decisions change with the economic environment and with time? This paper studies general nonstationary stopping problems and provides the methodological tools to answer these questions. First, we identify conditions that ensure a…

Theoretical Economics · Economics 2024-08-01 Théo Durandard , Matteo Camboni

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

Inventory management is a fundamental challenge in supply chain management. The challenge is compounded when the associated products have unpredictable demands. This study proposes an innovative optimization approach combining…

Optimization and Control · Mathematics 2024-02-20 Sarit Maitra

In this paper, we consider a class of stochastic optimal control problems with risk constraints that are expressed as bounded probabilities of failure for particular initial states. We present here a martingale approach that diffuses a risk…

Systems and Control · Computer Science 2015-07-09 Vu Anh Huynh , Leonid Kogan , Emilio Frazzoli

We consider a stochastic inventory control problem under censored demands, lost sales, and positive lead times. This is a fundamental problem in inventory management, with significant literature establishing near-optimality of a simple…

Machine Learning · Computer Science 2019-05-14 Shipra Agrawal , Randy Jia

This paper studies convergence properties of optimal values and actions for discounted and average-cost Markov Decision Processes (MDPs) with weakly continuous transition probabilities and applies these properties to the stochastic…

Optimization and Control · Mathematics 2017-03-21 Eugene A. Feinberg , Mark E. Lewis

Motivated by the post-disaster distribution system restoration problem, in this paper, we study the problem of synthesizing the optimal policy for a Markov Decision Process (MDP) from a sequence of goal sets. For each goal set, our aim is…

Systems and Control · Electrical Eng. & Systems 2024-04-09 İlker Işık , Onur Yigit Arpali , Ebru Aydin Gol

This paper is concerned with the maximum principle of stochastic optimal control problems, where the coefficients of the state equation and the cost functional are uncertain, and the system is generally under Markovian regime switching.…

Optimization and Control · Mathematics 2025-04-15 Tao Hao , Jiaqiang Wen , Jie Xiong

Models of many real-life applications, such as queuing models of communication networks or computing systems, have a countably infinite state-space. Algorithmic and learning procedures that have been developed to produce optimal policies…

Systems and Control · Electrical Eng. & Systems 2024-03-19 Saghar Adler , Vijay Subramanian

We consider the problem of governing systemic risk in a banking system model. The banking system model consists in an initial value problem for a system of stochastic differential equations whose dependent variables are the log-monetary…

Risk Management · Quantitative Finance 2018-12-19 Lorella Fatone , Francesca Mariani

Production planning must account for uncertainty in a production system, arising from fluctuating demand forecasts. Therefore, this article focuses on the integration of updated customer demand into the rolling horizon planning cycle. We…

Econometrics · Economics 2024-09-27 Manuel Schlenkrich , Wolfgang Seiringer , Klaus Altendorfer , Sophie N. Parragh

We study a stochastic control problem for nonlinear systems governed by stochastic differential equations with irregular drift. The drift coefficient is assumed to decompose as $b(t,x,a)=b_1(t,x)+b_2(x)b_3(t,a)$, where $b_1$ is bounded and…

Optimization and Control · Mathematics 2026-04-02 Antoine Marie Bogso , Rhoss Likibi Pellat , Wilfried Kuissi Kamdem , Olivier Menoukeu Pamen

In this paper we introduce a new model where the concept of condition-based maintenance is combined in a network setting with dynamic spare parts management. The model facilitates both preventive and corrective maintenance of geographically…

Optimization and Control · Mathematics 2020-04-07 Dmitrii Usanov , Peter van de Ven , Rob van der Mei

We consider a multi-stage stochastic lot-sizing problem with service level constraints and supplier-driven product substitution. A firm has multiple products and it has the option to meet demand from substitutable products at a cost.…

Optimization and Control · Mathematics 2023-01-03 Narges Sereshti , Merve Bodur , James R. Luedtke

We study the multi-stage stochastic unit commitment problem in which commitment and generation decisions can be made and adjusted in each time period. We formulate this problem as a Markov decision process, which is "weakly-coupled" in the…

Optimization and Control · Mathematics 2018-06-25 Jagdish Ramakrishnan , James Luedtke

We present a numerical method to compute the optimal maintenance time for a complex dynamic system applied to an example of maintenance of a metallic structure subject to corrosion. An arbitrarily early intervention may be uselessly costly,…

Probability · Mathematics 2015-03-17 Benoîte de Saporta , François Dufour , Huilong Zhang , Charles Elegbede

This paper presents an analysis of technical debt management through resources allocation policies in software maintenance process during its operation to demonstrate how different strategies leads to the emergence of different behaviors…

Software Engineering · Computer Science 2016-09-23 Eduardo Ferreira Franco , Joaquim Rocha , Hamilton Carvalho , Martins Marcelo , Kechi Hirama

We study an optimal-control problem of polling systems with large switchover times, when a holding cost is incurred on the queues. In particular, we consider a stochastic network with a single server that switches between several buffers…

Probability · Mathematics 2020-09-01 Yue Hu , Jing Dong , Ohad Perry

In recent years, mutual information optimal control has been proposed as an extension of maximum entropy optimal control. Both approaches introduce regularization terms to render the policy stochastic, and it is important to theoretically…

Optimization and Control · Mathematics 2026-03-23 Shoju Enami , Kenji Kashima
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