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Online Linear Optimization with Inventory Management Constraints

Authors:

Mohammad H. Hajiesmaili,

Ramesh Sitaraman,

Enrique Mallada, and

Wing S. WongAuthors Info & Claims

Proceedings of the ACM on Measurement and Analysis of Computing Systems, Volume 4, Issue 1

Article No.: 16, Pages 1 - 29

https://doi.org/10.1145/3379482

Published: 27 May 2020 Publication History

Abstract

This paper considers the problem of online linear optimization with inventory management constraints. Specifically, we consider an online scenario where a decision maker needs to satisfy her time-varying demand for some units of an asset, either from a market with a time-varying price or from her own inventory. In each time slot, the decision maker is presented a (linear) price and must immediately decide the amount to purchase for covering the demand and/or for storing in the inventory for future use. The inventory has a limited capacity and can be used to buy and store assets at low price and cover the demand when the price is high. The ultimate goal of the decision maker is to cover the demand at each time slot while minimizing the cost of buying assets from the market. We propose ARP, an online algorithm for linear programming with inventory constraints, and ARPRate, an extended version that handles rate constraints to/from the inventory. Both ARP and ARPRate achieve optimal competitive ratios, meaning that no other online algorithm can achieve a better theoretical guarantee. To illustrate the results, we use the proposed algorithms in a case study focused on energy procurement and storage management strategies for data centers.

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Cited By

Lee RSun BHajiesmaili MLui J(2024)Online Search with Predictions: Pareto-optimal Algorithm and its Applications in Energy MarketsProceedings of the 15th ACM International Conference on Future and Sustainable Energy Systems10.1145/3632775.3639590(386-407)Online publication date: 4-Jun-2024
https://dl.acm.org/doi/10.1145/3632775.3639590
Qin PTang GFu YWang Y(2024)Distributed BESS Scheduling for Power Demand Reshaping in 5G and Beyond NetworksIEEE Transactions on Green Communications and Networking10.1109/TGCN.2023.33324948:1(162-176)Online publication date: Mar-2024
https://doi.org/10.1109/TGCN.2023.3332494
Lechowicz AChristianson NZuo JBashir NHajiesmaili MWierman AShenoy P(2023)The Online Pause and Resume Problem: Optimal Algorithms and An Application to Carbon-Aware Load ShiftingProceedings of the ACM on Measurement and Analysis of Computing Systems10.1145/36267767:3(1-32)Online publication date: 7-Dec-2023
https://dl.acm.org/doi/10.1145/3626776
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cover image Proceedings of the ACM on Measurement and Analysis of Computing Systems

Proceedings of the ACM on Measurement and Analysis of Computing Systems Volume 4, Issue 1

SIGMETRICS

March 2020

467 pages

EISSN:2476-1249

DOI:10.1145/3402934

Editors:
Augustin Chaintreau
Columbia University
,
Leana Golubchik
University of Southern California
,
Zhi-Li Zhang
University of Minnesota

Issue’s Table of Contents

Copyright © 2020 ACM.

Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than the author(s) must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected].

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Publication History

Published: 27 May 2020

Online AM: 07 May 2020

Published in POMACS Volume 4, Issue 1

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Cited By

Lee RSun BHajiesmaili MLui J(2024)Online Search with Predictions: Pareto-optimal Algorithm and its Applications in Energy MarketsProceedings of the 15th ACM International Conference on Future and Sustainable Energy Systems10.1145/3632775.3639590(386-407)Online publication date: 4-Jun-2024
https://dl.acm.org/doi/10.1145/3632775.3639590
Qin PTang GFu YWang Y(2024)Distributed BESS Scheduling for Power Demand Reshaping in 5G and Beyond NetworksIEEE Transactions on Green Communications and Networking10.1109/TGCN.2023.33324948:1(162-176)Online publication date: Mar-2024
https://doi.org/10.1109/TGCN.2023.3332494
Lechowicz AChristianson NZuo JBashir NHajiesmaili MWierman AShenoy P(2023)The Online Pause and Resume Problem: Optimal Algorithms and An Application to Carbon-Aware Load ShiftingProceedings of the ACM on Measurement and Analysis of Computing Systems10.1145/36267767:3(1-32)Online publication date: 7-Dec-2023
https://dl.acm.org/doi/10.1145/3626776
Sun BLee RHajiesmaili MWierman ATsang DRanzato MBeygelzimer ADauphin YLiang PVaughan J(2021)Pareto-optimal learning-augmented algorithms for online conversion problemsProceedings of the 35th International Conference on Neural Information Processing Systems10.5555/3540261.3541052(10339-10350)Online publication date: 6-Dec-2021
https://dl.acm.org/doi/10.5555/3540261.3541052
Sun BZeynali ALi THajiesmaili MWierman ATsang D(2021)Competitive Algorithms for the Online Multiple Knapsack Problem with Application to Electric Vehicle ChargingProceedings of the ACM on Measurement and Analysis of Computing Systems10.1145/34283364:3(1-32)Online publication date: 15-Jun-2021
https://dl.acm.org/doi/10.1145/3428336
Asgari KNeely M(2020)Bregman-style Online Convex Optimization with EnergyHarvesting ConstraintsProceedings of the ACM on Measurement and Analysis of Computing Systems10.1145/34283374:3(1-25)Online publication date: 30-Nov-2020
https://dl.acm.org/doi/10.1145/3428337
Yang LHajiesmaili MSitaraman RWierman AMallada EWong WYeh EMarkopoulou ATay Y(2020)Online Linear Optimization with Inventory Management ConstraintsAbstracts of the 2020 SIGMETRICS/Performance Joint International Conference on Measurement and Modeling of Computer Systems10.1145/3393691.3394207(7-7)Online publication date: 8-Jun-2020
https://dl.acm.org/doi/10.1145/3393691.3394207

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