Implementable Policies: Discounted Cost Case

1995 ◽  
pp. 283-306 ◽  
Author(s):  
Yasemin Serin ◽  
Vidyadhar G. Kulkarni
Keyword(s):  
Discounted Cost

Optimal adaptive inspection and maintenance for redundant systems

2021 ◽  
pp. 1748006X2110201
Author(s):  
Chaochao Lin ◽  
Matteo Pozzi
Keyword(s):  
Engineering Systems ◽  
Discounted Cost ◽  
Markov Decision ◽  
Inspection And Maintenance ◽  
And Performance ◽  
Partially Observable ◽  
Series Systems ◽  
Selection Of ◽  
Redundant Systems

Optimal exploration of engineering systems can be guided by the principle of Value of Information (VoI), which accounts for the topological important of components, their reliability and the management costs. For series systems, in most cases higher inspection priority should be given to unreliable components. For redundant systems such as parallel systems, analysis of one-shot decision problems shows that higher inspection priority should be given to more reliable components. This paper investigates the optimal exploration of redundant systems in long-term decision making with sequential inspection and repairing. When the expected, cumulated, discounted cost is considered, it may become more efficient to give higher inspection priority to less reliable components, in order to preserve system redundancy. To investigate this problem, we develop a Partially Observable Markov Decision Process (POMDP) framework for sequential inspection and maintenance of redundant systems, where the VoI analysis is embedded in the optimal selection of exploratory actions. We investigate the use of alternative approximate POMDP solvers for parallel and more general systems, compare their computation complexities and performance, and show how the inspection priorities depend on the economic discount factor, the degradation rate, the inspection precision, and the repair cost.

scholarly journals Minimizing spectral risk measures applied to Markov decision processes

2021 ◽  
Author(s):  
Nicole Bäuerle ◽  
Alexander Glauner
Keyword(s):  
Minimization Problem ◽  
Risk Measures ◽  
Risk Measure ◽  
Sufficient Conditions ◽  
Planning Horizon ◽  
Insurance Company ◽  
Existence Of A Solution ◽  
Discounted Cost ◽  
Spectral Risk Measures ◽  
Markov Decision

AbstractWe study the minimization of a spectral risk measure of the total discounted cost generated by a Markov Decision Process (MDP) over a finite or infinite planning horizon. The MDP is assumed to have Borel state and action spaces and the cost function may be unbounded above. The optimization problem is split into two minimization problems using an infimum representation for spectral risk measures. We show that the inner minimization problem can be solved as an ordinary MDP on an extended state space and give sufficient conditions under which an optimal policy exists. Regarding the infinite dimensional outer minimization problem, we prove the existence of a solution and derive an algorithm for its numerical approximation. Our results include the findings in Bäuerle and Ott (Math Methods Oper Res 74(3):361–379, 2011) in the special case that the risk measure is Expected Shortfall. As an application, we present a dynamic extension of the classical static optimal reinsurance problem, where an insurance company minimizes its cost of capital.

scholarly journals Optimal Dividend and Capital Injection Problem with Transaction Cost and Salvage Value: The Case of Excess-of-Loss Reinsurance Based on the Symmetry of Risk Information

Symmetry ◽  
2018 ◽  
Vol 10 (7) ◽  
pp. 276 ◽  
Author(s):  
Qingyou Yan ◽  
Le Yang ◽  
Tomas Baležentis ◽  
Dalia Streimikiene ◽  
Chao Qin
Keyword(s):  
Transaction Cost ◽  
Risk Information ◽  
Insurance Company ◽  
Optimal Control Strategy ◽  
Ruin Time ◽  
Discounted Cost ◽  
Capital Injection ◽  
Surplus Process ◽  
Optimal Dividend ◽  
A Company

This paper considers the optimal dividend and capital injection problem for an insurance company, which controls the risk exposure by both the excess-of-loss reinsurance and capital injection based on the symmetry of risk information. Besides the proportional transaction cost, we also incorporate the fixed transaction cost incurred by capital injection and the salvage value of a company at the ruin time in order to make the surplus process more realistic. The main goal is to maximize the expected sum of the discounted salvage value and the discounted cumulative dividends except for the discounted cost of capital injection until the ruin time. By considering whether there is capital injection in the surplus process, we construct two instances of suboptimal models and then solve for the corresponding solution in each model. Lastly, we consider the optimal control strategy for the general model without any restriction on the capital injection or the surplus process.

scholarly journals Markov--Nash Equilibria in Mean-Field Games with Discounted Cost

2018 ◽  
Vol 56 (6) ◽  
pp. 4256-4287 ◽  
Author(s):  
Naci Saldi ◽  
Tamer Başar ◽  
Maxim Raginsky
Keyword(s):  
Nash Equilibria ◽  
Mean Field ◽  
Mean Field Games ◽  
Discounted Cost

A Microcosting Study of Establishing a Baby Café® in Texas

2017 ◽  
Vol 34 (1) ◽  
pp. 77-83 ◽  
Author(s):  
Rigoberto I. Delgado ◽  
Sara L. Gill
Keyword(s):  
United States ◽  
San Antonio ◽  
The United States ◽  
Extensive Literature ◽  
Policy Makers ◽  
Discounted Cost ◽  
Informal Interview ◽  
Resource Requirements ◽  
The Cost ◽  
Discounted Costs

Background: This article focuses on the costs of opening and running a Baby Café. A Baby Café is an intervention that focuses on providing peer-to-peer support for breastfeeding mothers. Research aim: This study aimed to estimate the costs of establishing and running a Baby Café. Methods: The authors used a microcosting approach to identifying costs using the case of a Baby Café located in San Antonio, Texas, and modeled after other existing cafés in the United States. They also used extensive literature review and conducted an informal interview with a manager of an existing Baby Café in the United States to validate our cost data. The cost analysis was done from the provider perspective. Results: Costs of starting a Baby Café were $36,000, whereas annual operating costs totaled $47,000. Total discounted costs for a 5-year period amounted to $250,000, resulting in a cost per Baby Café session of $521 and cost per mother of $104. Varying the number of sessions per week and number of mothers attending each session, the discounted cost per Baby Café session ranged between $460 and $740 and the cost per mother varied between $65 and $246. Conclusion: These findings can be used by policy makers and organizations to evaluate local resource requirements for starting a Baby Café. Further research is needed to evaluate the effectiveness of this intervention against other breastfeeding promoting initiatives.

scholarly journals DESIGN OF LVAC DISTRIBUTION SYSTEM WITH PV AND CENTRALIZED BATTERY ENERGY STORAGE INTEGRATION-A CASE STUDY OF CAMBODIA

2019 ◽  
Vol 9 (2) ◽  
pp. 1-16
Author(s):  
Vannak Vai ◽  
Marie-Cécile Alvarez-Hérault ◽  
Long Bun ◽  
Bertrand Raison
Keyword(s):  
Energy Storage ◽  
Load Balancing ◽  
Urban Area ◽  
Distribution Systems ◽  
Mixed Integer ◽  
Optimal Topology ◽  
Battery Energy Storage ◽  
Discounted Cost ◽  
Battery Energy

This paper studies an optimal design of grid topology and integrated photovoltaic (PV) and centralized battery energy storage considering techno-economic aspect in low voltage distribution systems for urban area in Cambodia. This work aims at searching for an optimal topology including size of the battery energy storage by two different methods over the planning study of 15 years. Firstly, the shortest path algorithm (SPA) and first-fit bin-packing algorithm (FFBPA) are used to find out the topology which minimize the line and the load balancing. Secondly, mixed integer quadratically constrained programming (MIQCP) algorithms are developed to search for a topology which minimize conductor use and the load balancing improvement. Next, Genetic algorithm is developed to size the maximum PV peak power connected into LV network with respected to voltage and current constraints. Then, the size of battery energy storage procedure is established in order to eliminate the reverse power flow going on medium voltage (MV) grid and to improve the autonomous operation time of system. A discounted cost method is used to evaluate the solutions for different methods. Lastly, an urban area in Cambodia is chosen as a case study in this paper. Simulation results confirm the proposed method in this research.

Performance Optimization of Semi-Markov Decision Processes with Discounted-cost Criteria

2008 ◽  
Vol 14 (3) ◽  
pp. 213-222 ◽  
Author(s):  
Baoqun Yin ◽  
Yanjie Li ◽  
Yaping Zhou ◽  
Hongsheng Xi
Keyword(s):  
Markov Decision Processes ◽  
Performance Optimization ◽  
Decision Processes ◽  
Discounted Cost ◽  
Markov Decision
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