Effective information in offline stochastic feedback and optimal control of dynamic systems: Results and applications

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

The concepts of effective information horizon (EIH) and effective information space (EIS) reflect the extent to which information is required for optimally controlling offline dynamic systems in stochastic environments. These concepts can be applied to overcome the difficulties involved in forecasting that arise when considering future information. Two approaches are utilized for modeling a given dynamic system. The first, denoted as pseudo-stochastic, is basically deterministic and considers the flow of uncertain future events by a superposition of the distribution functions of an event’s occurrence time. The second approach, the general stochastic model, considers all possible future scenarios. Several applications that are presented illustrate that when using only partial information for determining optimal control, the performance of the dynamic system is almost identical to that when using full information. The applications also illustrate that ignoring information beyond the planning horizon leads to significant performance loss and may violate the constraints of a control problem.

Original languageEnglish
Title of host publicationInternational Series in Operations Research and Management Science
Pages51-71
Number of pages21
DOIs
StatePublished - 2014

Publication series

NameInternational Series in Operations Research and Management Science
Volume198

All Science Journal Classification (ASJC) codes

  • Software
  • Computer Science Applications
  • Strategy and Management
  • Management Science and Operations Research
  • Applied Mathematics

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