FALL 2009

AMS 556 DYNAMIC PROGRAMMING

T,Th 12:50 – 2:10, Melville Lbr N3033

Professor Eugene A. Feinberg, 1-110 Math Tower, phone 632-7189,             fax: 632-8490, email:  Eugene.Feinberg@sunysb.edu, http://www.ams.sunysb.edu/~feinberg/courses/ams556/

Office Hours: T, Th 9:30 – 10:30 and by appointment.

Course information and Lecture Notes will be available on the Blackboard.

This course is an introduction to the theory of sequential stochastic and deterministic optimization and its applications.  Stochastic sequential (or multistage) optimization problems are also known in the literature under the name of Markov Decision Processes (MDPs).  This course deals with finite and infinite horizon problems, with problems with finite and infinite state spaces, with discrete and continuous time problems, and with various applications.

MAIN TOPICS

  

I. Finite horizon problems and general principles.  Model and policy definitions.  Principle of optimality.  Dynamic programming equation.  Randomization and de-randomization.

 

II. Infinite horizon problems: total reward criteria.  Positive, negative, and discounted problems.  Value iteration and policy iteration algorithms.  Linear programming approach. Problems with multiple criteria.  General convergent models.  Infinite state problems. 

 

III. Infinite horizon problems: average rewards per unit time.  Canonical triplets.  Policy and value iteration.  Linear programming methods.  Multiple criteria problems.   Blackwell optimality.  Infinite state problems.

 

IV.  Continuous time problems.  Semi-Markov Decision Processes.  Continuous-Time Jump Markov Decision Processes.

 

V.   Applications. Production and service operations (inventory and queueing control).  Financial applications.  Telecommunications applications. Neuro-dynamic programming.

Textbook. Lecture notes will be available on the Blackboard.

Some important books on Dynamic Programming/MDPs:

E. Altman, Constrained Markov Decision Processes, Chapman&Hall/CRC, Boca Raton, FL, 1999.

R.E. Bellman, Dynamic Programming, Princeton University Press, Princeton, NJ, 1957.

D.P. Bertsekas, Dynamic Programming and Optimal Control. Volume I (second edition), Athena Scientific, Belmont, MA, 2000.

D.P. Bertsekas, Dynamic Programming and Optimal Control. Volume II, Athena Scientific, Belmont, MA, 1995.

D.P. Bertsekas and S.E. Shreve, Stochastic Optimal Control: the Discrete Time Case, Athena Scientific, Belmont, MA, 1997.

D.P. Bertsekas and J.N. Tsitsiklis, Neuro-Dynamic Programming, Athena Scientific, Belmont, MA, 1996.

C. Derman, Finite State Markovian Decision Processes, Academic Press, New York, 1970.

E.B. Dynkin and A.A. Yushkevich, Controlled Markov Processes, Springer-Verlag, New York, 1979.

E.A. Feinberg and A. Shwartz (editors). Handbook of Markov Decision Processes: Methods and Applications. Kluwer, Boston, 2002.

O. Hernandez-Lerma and J.B. Lasserre, Discrete-Time Markov Control Processes: Basic Optimality Criteria. Springer, New York, 1996.

O. Hernandez-Lerma and J.B. Lasserre, Further Topics on Discrete-Time Markov Control Processes. Springer, New York, 1999.

D.P. Heyman and M.J. Sobel. Stochastic Models in Operations Research. Volume II: Stochastic Optimization, McGraw Hill, New York, 1984.

A. Hordijk, Dynamic Programming and Markov Potential Theory, Mathematical Centre Tracts, Amsterdam, 1974.

R.A. Howard, Dynamic Programming and Markov Processes, MIT Press, Cambridge, MA, 1960.

L.C.M. Kallenberg, Linear Programming and Finite Markovian Control Problems, Mathematical Centre Tracts, Amsterdam, 1983.

H. Mine and S. Osaki, Markov Decision Processes, Elsevier, New York, 1970.

A.B. Piunovskiy, Optimal Control of Random Sequences in Problems with Constraints, Kluwer, Dordrecht, 1997.

M.L. Puterman, Markov Decision Processes: Discrete Stochastic Dynamic Programming, Wiley&Sons, New York, 1994.

L.I. Sennott, Stochastic Dynamic Programming and the Control of Queueing Systems, Wiley&Sons, New York, 1999.

J. van der Wal, Stochastic Dynamic Programming, Mathematical Centre Tracts, Amsterdam, 1981.

Grading policy: 30% Home work average, 30% Midterm paper, 40% Final paper.

            If you have a physical, psychological, medical, or learning disability that may impact your course work, please contact Disability Support Services at (631) 632-6748 or http://studentaffairs.stonybrook.edu/dss/. They will determine with you what accommodations are necessary and appropriate.  All information and documentation is confidential.

 

Students who require assistance during emergency evacuation are encouraged to discuss their needs with me and Disability Support Services. For procedures and information go to the following website: http://www.sunysb.edu/ehs/fire/disabilities.shtml