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In the era of smart manufacturing and Industry 4.0, the refining industry is evolving towards large-scale integration and flexible production systems. In response to these new demands, this paper presents a novel optimization framework for…

Systems and Control · Electrical Eng. & Systems 2025-04-14 Zhouchang Li , Runze Lin , Hongye Su , Lei Xie

This thesis provides an overview of the recent advances in reinforcement learning in pricing and hedging financial instruments, with a primary focus on a detailed explanation of the Q-Learning Black Scholes approach, introduced by Halperin…

Computational Finance · Quantitative Finance 2023-10-09 Zoran Stoiljkovic

Deep Reinforcement Learning (DRL) provides a general-purpose methodology for training inventory policies that can leverage big data and compute. However, off-the-shelf implementations of DRL have seen mixed success, often plagued by high…

Machine Learning · Computer Science 2026-03-23 Yaqi Xie , Xinru Hao , Jiaxi Liu , Will Ma , Linwei Xin , Lei Cao , Yidong Zhang

The recent surge in Deep Learning (DL) research of the past decade has successfully provided solutions to many difficult problems. The field of quantitative analysis has been slowly adapting the new methods to its problems, but due to…

The large variety of digital payment choices available to consumers today has been a key driver of e-commerce transactions in the past decade. Unfortunately, this has also given rise to cybercriminals and fraudsters who are constantly…

Machine Learning · Computer Science 2021-12-09 Siddharth Vimal , Kanishka Kayathwal , Hardik Wadhwa , Gaurav Dhama

With the rapid development of artificial intelligence, data-driven methods effectively overcome limitations in traditional portfolio optimization. Conventional models primarily employ long-only mechanisms, excluding highly correlated assets…

Computational Finance · Quantitative Finance 2025-03-18 Gang Huang , Xiaohua Zhou , Qingyang Song

Traditional bulk load flexibility options, such as load shifting and load curtailment, for managing uncertainty in power markets limit the diversity of options and ignore the preferences of the individual loads, thus reducing efficiency and…

Systems and Control · Electrical Eng. & Systems 2021-12-20 Majid Majidi , Deepan Muthirayan , Masood Parvania , Pramod P. Khargonekar

Reinforcement learning has been explored for many problems, from video games with deterministic environments to portfolio and operations management in which scenarios are stochastic; however, there have been few attempts to test these…

General Finance · Quantitative Finance 2024-02-19 Sherly Alfonso-Sánchez , Jesús Solano , Alejandro Correa-Bahnsen , Kristina P. Sendova , Cristián Bravo

With the rapid growth of memory and computing power, datasets are becoming increasingly complex and imbalanced. This is especially severe in the context of clinical data, where there may be one rare event for many cases in the majority…

Amazon and other e-commerce sites must employ mechanisms to protect their millions of customers from fraud, such as unauthorized use of credit cards. One such mechanism is order fraud evaluation, where systems evaluate orders for fraud…

Machine Learning · Computer Science 2022-12-07 Soysal Degirmenci , Chris Jones

This paper shows a comprehensive analysis of three algorithms (Time Series, Random Forest (RF) and Deep Reinforcement Learning) into three inventory models (the Lost Sales, Dual-Sourcing and Multi-Echelon Inventory Model). These…

Artificial Intelligence · Computer Science 2025-05-14 Lee Yeung Ping , Patrick Wong , Tan Cheng Han

In finance, sequential decision problems are often faced, for which reinforcement learning (RL) emerges as a promising tool for optimisation without the need of analytical tractability. However, the objective of classical RL is the expected…

Computational Finance · Quantitative Finance 2026-02-13 Federico Cacciamani , Roberto Daluiso , Marco Pinciroli , Michele Trapletti , Edoardo Vittori

Reinforcement learning (RL) has shown promise for trading, yet most open-source backtesting environments assume negligible or fixed transaction costs, causing agents to learn trading behaviors that fail under realistic execution. We…

Machine Learning · Computer Science 2026-04-07 Lucas Riera Abbade , Anna Helena Reali Costa

Optimized trade execution is to sell (or buy) a given amount of assets in a given time with the lowest possible trading cost. Recently, reinforcement learning (RL) has been applied to optimized trade execution to learn smarter policies from…

Trading and Market Microstructure · Quantitative Finance 2023-07-24 Chuheng Zhang , Yitong Duan , Xiaoyu Chen , Jianyu Chen , Jian Li , Li Zhao

Optimal stopping is the problem of deciding the right time at which to take a particular action in a stochastic system, in order to maximize an expected reward. It has many applications in areas such as finance, healthcare, and statistics.…

Artificial Intelligence · Computer Science 2021-05-20 Abderrahim Fathan , Erick Delage

Companies across all economic sectors continue to deploy large language models at a rapid pace. Reinforcement learning is experiencing a resurgence of interest due to its association with the fine-tuning of language models from human…

Machine Learning · Computer Science 2025-02-25 David Byrd

This paper presents a comprehensive study on the use of ensemble Reinforcement Learning (RL) models in financial trading strategies, leveraging classifier models to enhance performance. By combining RL algorithms such as A2C, PPO, and SAC…

Machine Learning · Computer Science 2026-05-21 Zheli Xiong

Order picking is a pivotal operation in warehouses that directly impacts overall efficiency and profitability. This study addresses the dynamic order picking problem, a significant concern in modern warehouse management, where real-time…

Optimization and Control · Mathematics 2025-04-08 Sasan Mahmoudinazlou , Abhay Sobhanan , Hadi Charkhgard , Ali Eshragh , George Dunn

Reinforcement learning usually makes use of numerical rewards, which have nice properties but also come with drawbacks and difficulties. Using rewards on an ordinal scale (ordinal rewards) is an alternative to numerical rewards that has…

Machine Learning · Computer Science 2020-12-09 Alexander Zap , Tobias Joppen , Johannes Fürnkranz

Traffic signal controllers play an essential role in today's traffic system. However, the majority of them currently is not sufficiently flexible or adaptive to generate optimal traffic schedules. In this paper we present an approach to…

Machine Learning · Computer Science 2021-05-05 Shengchao Yan , Jingwei Zhang , Daniel Büscher , Wolfram Burgard
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