Approximate dynamic programming in transportation and logistics: a unified framework

Deterministic optimization has enjoyed a rich place in transportation and logistics, where it represents a mature field with established modeling and algorithmic strategies. By contrast, sequential stochastic optimization models (dynamic programs) have been plagued by the lack of a common modeling f...

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Vydané v:EURO Journal on Transportation and Logistics Ročník 1; číslo 3; s. 237 - 284
Hlavní autori: Powell, Warren B., Simao, Hugo P., Bouzaiene-Ayari, Belgacem
Médium: Journal Article
Jazyk:English
Vydavateľské údaje: Berlin/Heidelberg Elsevier B.V 01.09.2012
Springer-Verlag
Predmet:
Approximate dynamic programming
Business and Management
Dynamic programming
Dynamic vehicle routing
Logistics
Management Science
Operations Research
Operations Research/Decision Theory
Optimization
Stochastic programming
Stochastic search
Tutorial
Dynamic vehicle routing
Approximate dynamic programming
Dynamic programming
Stochastic search
Stochastic programming
Logistics
ISSN:2192-4376, 2192-4384
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Abstract Deterministic optimization has enjoyed a rich place in transportation and logistics, where it represents a mature field with established modeling and algorithmic strategies. By contrast, sequential stochastic optimization models (dynamic programs) have been plagued by the lack of a common modeling framework, and by algorithmic strategies that just do not seem to scale to real-world problems in transportation. This paper is designed as a tutorial of the modeling and algorithmic framework of approximate dynamic programming; however, our perspective on approximate dynamic programming is relatively new, and the approach is new to the transportation research community. We present a simple yet precise modeling framework that makes it possible to integrate most algorithmic strategies into four fundamental classes of policies, the design of which represents approximate solutions to these dynamic programs. The paper then uses problems in transportation and logistics to indicate settings in which each of the four classes of policies represents a natural solution strategy, highlighting the fact that the design of effective policies for these complex problems will remain an exciting area of research for many years. Along the way, we provide a link between dynamic programming, stochastic programming and stochastic search.
AbstractList Deterministic optimization has enjoyed a rich place in transportation and logistics, where it represents a mature field with established modeling and algorithmic strategies. By contrast, sequential stochastic optimization models (dynamic programs) have been plagued by the lack of a common modeling framework, and by algorithmic strategies that just do not seem to scale to real-world problems in transportation. This paper is designed as a tutorial of the modeling and algorithmic framework of approximate dynamic programming; however, our perspective on approximate dynamic programming is relatively new, and the approach is new to the transportation research community. We present a simple yet precise modeling framework that makes it possible to integrate most algorithmic strategies into four fundamental classes of policies, the design of which represents approximate solutions to these dynamic programs. The paper then uses problems in transportation and logistics to indicate settings in which each of the four classes of policies represents a natural solution strategy, highlighting the fact that the design of effective policies for these complex problems will remain an exciting area of research for many years. Along the way, we provide a link between dynamic programming, stochastic programming and stochastic search.
Author Simao, Hugo P.
Powell, Warren B.
Bouzaiene-Ayari, Belgacem
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  givenname: Hugo P.
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  givenname: Belgacem
  surname: Bouzaiene-Ayari
  fullname: Bouzaiene-Ayari, Belgacem
  organization: Department of Operations Research and Financial Engineering, Princeton University, Princeton, NJ 08544, USA
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Issue 3
Keywords Dynamic vehicle routing
Approximate dynamic programming
Dynamic programming
Stochastic search
Stochastic programming
Logistics
Language English
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Snippet Deterministic optimization has enjoyed a rich place in transportation and logistics, where it represents a mature field with established modeling and...
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springer
elsevier
SourceType Enrichment Source
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Publisher
StartPage 237
SubjectTerms Approximate dynamic programming
Business and Management
Dynamic programming
Dynamic vehicle routing
Logistics
Management Science
Operations Research
Operations Research/Decision Theory
Optimization
Stochastic programming
Stochastic search
Tutorial
Title Approximate dynamic programming in transportation and logistics: a unified framework
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