Optimisation of stochastic networks with blocking: a functional-form approach

This paper introduces a class of stochastic networks with blocking, motivated by applications arising in cellular network planning, mobile cloud computing, and spare parts supply chains. Blocking results in lost revenue due to customers or jobs being permanently removed from the system. We are interested in striking a balance between mitigating blocking by increasing service capacity, and maintaining low costs for service capacity. This problem is further complicated by the stochastic nature of the system. Owing to the complexity of the system there are no analytical results available that formulate and solve the relevant optimization problem in closed form. Traditional simulation-based methods may work well for small instances, but the associated computational costs are prohibitive for networks of realistic size. We propose a hybrid functional-form based approach for finding the optimal resource allocation, combining the speed of an analytical approach with the accuracy of simulation-based optimisation. The key insight is to replace the computationally expensive gradient estimation in simulation optimisation with a closed-form analytical approximation that is calibrated using a single simulation run. We develop two implementations of this approach and conduct extensive computational experiments on complex examples to show that it is capable of substantially improving system performance. We also provide evidence that our approach has substantially lower computational costs compared to stochastic approximation

Online network optimization using product-form Markov processes

\u3cp\u3eWe develop a gradient algorithm for optimizing the performance of product-form networks through online adjustment of control parameters. The use of standard algorithms for finding optimal parameter settings is hampered by the prohibitive computational burden of calculating the gradient in terms of the stationary probabilities. The proposed approach instead relies on measuring empirical frequencies of the various states through simulation or online operation so as to obtain estimates for the gradient. Besides the reduction in computational effort, a further benefit of the online operation lies in the natural adaptation to slow variations in ambient parameters as commonly occurring in dynamic environments. On the downside, the measurements result in inherently noisy and biased estimates. We exploit mixing time results in order to overcome the impact of the bias and establish sufficient conditions for convergence to a globally optimal solution. We discuss our algorithm in the context of different systems, including queueing networks, loss networks, and wireless networks. We also illustrate how the algorithm can be used in such systems to optimize a service/cost trade-off, to map parameter regions that lead to systems meeting specified constraints, and to achieve target performance measures. For the latter application, we first identify which performance measures can be controlled depending on the set of configurable parameters. We then characterize the achievable region of performance measures in product-form networks, and finally we describe how our algorithm can be used to achieve the target performance in an online, distributed fashion, depending on the application context.\u3c/p\u3

Online network optimization using product-form Markov processes

We develop a gradient algorithm for optimizing the performance of product-form networks through online adjustment of control parameters. The use of standard algorithms for finding optimal parameter settings is hampered by the prohibitive computational burden of calculating the gradient in terms of the stationary probabilities. The proposed approach instead relies on measuring empirical frequencies of the various states through simulation or online operation so as to obtain estimates for the gradient. Besides the reduction in computational effort, a further benefit of the online operation lies in the natural adaptation to slow variations in ambient parameters as commonly occurring in dynamic environments. On the downside, the measurements result in inherently noisy and biased estimates. We exploit mixing time results in order to overcome the impact of the bias and establish sufficient conditions for convergence to a globally optimal solution. We discuss our algorithm in the context of different systems, including queueing networks, loss networks, and wireless networks. We also illustrate how the algorithm can be used in such systems to optimize a service/cost trade-off, to map parameter regions that lead to systems meeting specified constraints, and to achieve target performance measures. For the latter application, we first identify which performance measures can be controlled depending on the set of configurable parameters. We then characterize the achievable region of performance measures in product-form networks, and finally we describe how our algorithm can be used to achieve the target performance in an online, distributed fashion, depending on the application context