We found a match
Your institution may have rights to this item. Sign in to continue.
- Title
Model Predictive Control for Dynamic Resource Allocation.
- Authors
Ciocan, Dragos Florin; Farias, Vivek
- Abstract
The present paper develops a simple, easy to interpret algorithm for a large class of dynamic allocation problems with unknown, volatile demand. Potential applications include ad display problems and network revenue management problems. The algorithm operates in an online fashion and relies on reoptimization and forecast updates. The algorithm is robust (as witnessed by uniform worst-case guarantees for arbitrarily volatile demand) and in the event that demand volatility (or equivalently deviations in realized demand from forecasts) is not large, the method is simultaneously optimal. Computational experiments, including experiments with data from real-world problem instances, demonstrate the practicality and value of the approach. From a theoretical perspective, we introduce a new device--a balancing property--that allows us to understand the impact of changing bases in our scheme.
- Subjects
PREDICTIVE control systems; REVENUE management; ECONOMIC demand; INTERNET advertising; BUSINESS forecasting
- Publication
Mathematics of Operations Research, 2012, Vol 37, Issue 3, p501
- ISSN
0364-765X
- Publication type
Article
- DOI
10.1287/moor.1120.0548