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| Main Authors: | , , |
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| Format: | Preprint |
| Published: |
2024
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| Subjects: | |
| Online Access: | https://arxiv.org/abs/2403.11443 |
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| _version_ | 1866910741231042560 |
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| author | Banerjee, Dipayan Erera, Alan Toriello, Alejandro |
| author_facet | Banerjee, Dipayan Erera, Alan Toriello, Alejandro |
| contents | We study the finite-horizon continuous-time dynamic yield management problem with stationary arrival rates and two customer types. We consider a class of linear threshold policies proposed by Hodge (2008), in which each less-profitable customer is accepted if and only if the remaining inventory exceeds a threshold that linearly decreases over the horizon. We use a Markov chain representation to show that such policies achieve uniformly bounded regret. We then generalize this result to analogous policies for arbitrarily many customer types. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2403_11443 |
| institution | arXiv |
| publishDate | 2024 |
| record_format | arxiv |
| spellingShingle | On Linear Threshold Policies for Continuous-Time Dynamic Yield Management Banerjee, Dipayan Erera, Alan Toriello, Alejandro Optimization and Control 90B99 We study the finite-horizon continuous-time dynamic yield management problem with stationary arrival rates and two customer types. We consider a class of linear threshold policies proposed by Hodge (2008), in which each less-profitable customer is accepted if and only if the remaining inventory exceeds a threshold that linearly decreases over the horizon. We use a Markov chain representation to show that such policies achieve uniformly bounded regret. We then generalize this result to analogous policies for arbitrarily many customer types. |
| title | On Linear Threshold Policies for Continuous-Time Dynamic Yield Management |
| topic | Optimization and Control 90B99 |
| url | https://arxiv.org/abs/2403.11443 |