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An Adaptive Dynamic Programming Algorithm for Dynamic Fleet Management, I: Single Period Travel Times

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  • Gregory A. Godfrey

    (Department of Operations Research and Financial Engineering, Princeton University, Princeton, New Jersey 08544)

  • Warren B. Powell

    (Department of Operations Research and Financial Engineering, Princeton University, Princeton, New Jersey 08544)

Abstract

We consider a stochastic version of a dynamic resource allocation problem. In this setting, reusable resources must be assigned to tasks that arise randomly over time. We solve the problem using an adaptive dynamic programming algorithm that uses nonlinear functional approximations that give the value of resources in the future. Our functional approximations are piecewise linear and naturally provide integer solutions. We show that the approximations provide near-optimal solutions to deterministic problems and solutions that significantly outperform deterministic rolling-horizon methods on stochastic problems.

Suggested Citation

  • Gregory A. Godfrey & Warren B. Powell, 2002. "An Adaptive Dynamic Programming Algorithm for Dynamic Fleet Management, I: Single Period Travel Times," Transportation Science, INFORMS, vol. 36(1), pages 21-39, February.
    • Handle: RePEc:inm:ortrsc:v:36:y:2002:i:1:p:21-39
    DOI: 10.1287/trsc.36.1.21.570
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    References listed on IDEAS

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    7. Warren B. Powell, 1989. "A Review of Sensitivity Results for Linear Networks and a New Approximation to Reduce the Effects of Degeneracy," Transportation Science, INFORMS, vol. 23(4), pages 231-243, November.
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    10. Linos F. Frantzeskakis & Warren B. Powell, 1990. "A Successive Linear Approximation Procedure for Stochastic, Dynamic Vehicle Allocation Problems," Transportation Science, INFORMS, vol. 24(1), pages 40-57, February.
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