Structured Optimal Policy for a Capacity Expansion Model Using Markov Decision Processes

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

1 Scopus citations

Abstract

This paper presents a stochastic dynamic capacity expansion planning model, formulated using a Markov Decision Process (MDP). We characterize the optimal policy and prove the existence of a threshold-type structured policy. In particular, we provide a novel proof by demonstrating the subadditivity of the cost model, resulting in increased computational efficiency.

Original languageEnglish
Title of host publication2024 IEEE International Conference on Technology Management, Operations and Decisions, ICTMOD 2024
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)9798350367355
DOIs
StatePublished - 2024
Event2024 IEEE International Conference on Technology Management, Operations and Decisions, ICTMOD 2024 - Sharjah, United Arab Emirates
Duration: 4 Nov 20246 Nov 2024

Publication series

Name2024 IEEE International Conference on Technology Management, Operations and Decisions, ICTMOD 2024

Conference

Conference2024 IEEE International Conference on Technology Management, Operations and Decisions, ICTMOD 2024
Country/TerritoryUnited Arab Emirates
CitySharjah
Period4/11/246/11/24

Bibliographical note

Publisher Copyright:
© 2024 IEEE.

Keywords

  • Capacity management
  • Markov decision process (MDP)
  • capacity planning
  • threshold Policy

ASJC Scopus subject areas

  • Management of Technology and Innovation
  • Computer Networks and Communications
  • Information Systems and Management
  • Management Science and Operations Research
  • Control and Optimization

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