Operations Research, Systems Engineering and Industrial Engineering Commons^™

Optimizing Strategic Planning With Long-Term Sequential Decision Making Under Uncertainty: A Decomposition Approach, Zeyu Liu

Doctoral Dissertations

The operations research literature has seen decision-making methods at both strategic and operational levels, where high-level strategic plans are first devised, followed by long-term policies that guide future day-to-day operations under uncertainties. Current literature studies such problems on a case-by-case basis, without a unified approach. In this study, we investigate the joint optimization of strategic and operational decisions from a methodological perspective, by proposing a generic two-stage long-term strategic stochastic decision-making (LSSD) framework, in which the first stage models strategic decisions with linear programming (LP), and the second stage models operational decisions with Markov decision processes (MDP). The joint optimization …