Cong Shi

University of Michigan | U-M · Department of Industrial and Operations Engineering

This paper studies a class of revenue management problems in systems with reusable resources and advanced reservations. A simple control policy called the class selection policy (CSP) is proposed based on solving a knapsack-type linear program (LP). It is shown that the CSP and its variants perform provably near-optimal under several classical asym...

We propose a nonparametric data-driven algorithm called DDM for the management of stochastic periodic-review multiproduct inventory systems with a warehouse-capacity constraint. The demand distribution is not known a priori and the firm only has access to past sales data (often referred to as censored demand data). We measure performance of DDM thr...

We consider the following two deterministic inventory optimization problems over a finite planning horizon $T$ with non-stationary demands. (a) Submodular Joint Replenishment Problem: This involves multiple item types and a single retailer who faces demands. In each time step, any subset of item-types can be ordered incurring a joint ordering cost...

We develop the first approximation algorithms with worst-case performance guarantees for periodic-review perishable inventory systems with general product lifetime, for both backlogging and lost-sales models. The demand process can be nonstationary and correlated over time, capturing such features as demand seasonality and forecast updates. The opt...

We develop new algorithmic approaches to compute provably near-optimal policies for multiperiod stochastic lot-sizing inventory models with positive lead times, general demand distributions, and dynamic forecast updates. The policies that are developed have worst-case performance guarantees of 3 and typically perform very close to optimal in extens...

Revenue Management of Service Systems under Incomplete Information Revenue management with reusable resources finds many important applications in today's economy, such as cloud computing services, car/bicycle rental services, ride-hailing services, hotel management, project team management, and call center services. The existing literature predomi...

In this paper, we present a framework for trust-aware sequential decision-making in a human-robot team wherein the human agent’s trust in the robotic agent is dependent on the reward obtained by the team. We model the problem as a finite-horizon Markov Decision Process with the trust of the human on the robot as a state variable. We develop a rewar...

In this paper, we present a framework for trust-aware sequential decision-making in a human-robot team. We model the problem as a finite-horizon Markov Decision Process with a reward-based performance metric, allowing the robotic agent to make trust-aware recommendations. Results of a human-subject experiment show that the proposed trust update mod...

Amidst the COVID-19 pandemic, restaurants become more reliant on no-contact pick-up or delivery ways for serving customers. As a result, they need to make tactical planning decisions such as whether to partner with online platforms, to form their own delivery team, or both. In this paper, we develop an integrated prediction-decision model to analyz...

Joint online learning and resource allocation is a fundamental problem inherent in many applications. In a general setting, heterogeneous customers arrive sequentially, each of which can be allocated to a resource in an online fashion. Customers stochastically consume the resources, allocations yield stochastic rewards, and the system receives feed...

The process of how ordinary people evolve to be well-known by delivering varied digital media content (i.e. micro-celebrification) remains perplexing. This study examines the role of mutation strategy featuring: (1) mutation diversity (the degree of evenness of content distribution across mutated styles) and (2) mutation divergence (i.e. the degree...

We consider a general class of multi-armed bandits (MAB) problems with sub-exponential rewards. This is primarily motivated by service systems with exponential inter-arrival and service distributions. It is well-known that the celebrated Upper Confidence Bound (UCB) algorithm can achieve tight regret bound for MAB under sub-Gaussian rewards. There...

To facilitate effective human-robot interaction (HRI), trust-aware HRI has been proposed, wherein the robotic agent explicitly considers the human's trust during its planning and decision making. The success of trust-aware HRI depends on the specification of a trust dynamics model and a trust-behavior model. In this study, we proposed one novel tru...

To facilitate effective human-robot interaction (HRI), trust-aware HRI has been proposed, wherein the robotic agent explicitly considers the human's trust during its planning and decision making. The success of trust-aware HRI depends on the specification of a trust dynamics model and a trust-behavior model. In this study, we proposed one novel tru...

We consider a joint pricing and inventory control problem in which the customer’s response to selling price and the demand distribution are not known a priori. Unsatisfied demand is lost and unobserved, and the only available information for decision making is the observed sales data (also known as censored demand). Conventional approaches, such as...

We consider a periodic-review single-product inventory system with fixed cost under censored demand. Under full demand distributional information, it is well known that the celebrated (s, S) policy is optimal. In this paper, we assume the firm does not know the demand distribution a priori and makes adaptive inventory ordering decisions in each per...

Problem Definition: We study a fundamental online resource allocation problem in service operations in which a heterogeneous stream of arrivals that varies in service times and rewards makes service requests from a finite number of servers/providers. This is an online adversarial setting in which nothing more is known about the arrival process of c...

Problem definition: We study a fundamental online resource allocation problem in service operations in which a heterogeneous stream of arrivals that varies in service times and rewards makes service requests from a finite number of servers/providers. This is an online adversarial setting in which nothing more is known about the arrival process of c...

We propose the first learning algorithm for single‐product, periodic‐review, backlogging inventory systems with random production capacity. Different than the existing literature on this class of problems, we assume that the firm has neither prior information about the demand distribution nor the capacity distribution, and only has access to past d...

We consider a model wherein the seller sells a product to customers over an infinite horizon. At each time, the seller decides a set of purchase options offered to customers and the inventory replenishment quantity. Each purchase option specifies a price and a product delivery time. Customers are infinitesimal and arrive to the system with a consta...

We study strategic capacity investment problems in joint ventures (JVs) with fixed‐rate revenue sharing contracts. We adopt a game‐theoretical approach to study two types of JVs depending on how individual resources determine the effective capacity of a JV. With complementary resources, the effective capacity of a JV is constrained by the most scar...

We consider a periodic-review, single-product inventory system with lost sales and positive lead times under censored demand. In contrast to the classical inventory literature, we assume the firm does not know the demand distribution a priori and makes an adaptive inventory-ordering decision in each period based only on the past sales (censored dem...

The classical process flexibility literature has mostly focused on single-period models as finding the optimal multiperiod policy is difficult because of the curse of dimensionality. In “Process Flexibility for Multiperiod Production Systems,” Cong Shi, Yehua Wei, and Yuan Zhong study the design of sparse flexibility in dynamic make-to-order enviro...

Motivated by the importance of service quality in nowadays customer business environment, we focus on inventory optimization under probabilistic service level constraints, namely, the ∝ service level (also known as the ready rate) or the β service level (also known as the fill rate). Under service level constraints, we consider two canonical stocha...

Managing perishable inventory systems with positive lead times and finite ordering capacities is important but notoriously difficult in both theory and computation. The optimal control policy is extremely complicated, and no effective heuristic policy has been proposed in the literature. In this paper, we develop an easy-to-compute approximation al...

We develop the first nonparametric learning algorithm for periodic-review perishable inventory systems. In contrast to the classical perishable inventory literature, we assume that the firm does not know the demand distribution a priori and makes replenishment decisions in each period based only on the past sales (censored demand) data. It is well...

We consider a joint pricing and inventory management problem wherein a seller sells a single product over an infinite horizon via dynamically determining anonymous posted prices and inventory replenishment quantities. Customers arrive over time with a deterministic arrival rate but heterogeneous product valuations. A customer's arrival time and pro...

We investigate the staffing problem at Peace Arch, one of the major U.S.–Canada border crossings, with the goal of reducing time delay without compromising the effectiveness of security screening. Our data analytics show how the arrival rates of vehicles vary by time of day and day of week, and that the service rate per booth varies considerably by...

We study an admission control model in revenue management with nonstationary and correlated demands over a finite discrete time horizon. The arrival probabilities are updated by current available information, that is, past customer arrivals and some other exogenous information. We develop a regret-based framework, which measures the difference in r...

We study the scheduling of multiple tasks under varying processing costs and derive a priority rule for optimal scheduling policies. Each task has a due date, and a non-completion penalty cost is incurred if the task is not completely processed before its due date. We assume that the task arrival process is stochastic and the processing rate is cap...

We consider a class of single-stage multi-period production planning problems under demand uncertainty. The main feature of our paper is to incorporate a joint service-level constraint to restrict the joint probability of having backorders in any period. This is motivated by manufacturing and retailing applications, in which firms need to decide th...

We develop the first approximation algorithm for periodic-review perishable inventory systems with setup costs. The ordering lead time is zero. The model allows for correlated demand processes that generalize the well-known approaches to model dynamic demand forecast updates. The structure of optimal policies for this fundamental class of problems...

We consider a joint pricing and inventory management problem wherein a seller sells a single product over an infinite horizon via dynamically determining anonymous posted prices and inventory replenishment quantities. Customers arrive over time with a deterministic arrival rate but heterogeneous product valuations. Unlike typical inventory models,...

Motivated by the importance of service quality in today's customer business environment, we consider two periodic-review stochastic inventory models with probabilistic service-level guarantees for restricting stockout probabilities: (i) the classical inventory control model with backlogging and (ii) the remanufacturing inventory control model with...

We revisit the classical resource allocation problem with general convex objective functions, subject to an integer knapsack constraint. This class of problems is fundamental in discrete optimization and arises in a wide variety of applications. In this paper, we propose a novel polynomial-time divide-and-conquer algorithm (called the multi-phase a...

We consider a class of well-known dynamic resource allocation models in loss network systems with advanced reservation. The most important performance measure in any loss network system is to compute its blocking probability, i.e., the probability of an arriving customer in equilibrium finds a fully utilized system (thereby getting rejected by the...

We consider the classical joint pricing and inventory control problem with lost-sales and censored demand in which the customer's response to selling price and the demand distribution are not known a priori, and the only available information for decision-making is the past sales data. Conventional approaches, such as stochastic approximation, onli...

We develop the first approximation algorithm with worst-case performance guarantee for capacitated stochastic periodic-review inventory systems with setup costs. The structure of the optimal control policy for such systems is extremely complicated, and indeed, only some partial characterization is available. Thus, finding provably near-optimal cont...