Learning optimization models in the presence of unknown relations

In a sequential auction with multiple bidding agents, it is highly challenging to determine the ordering of the items to sell in order to maximize the revenue due to the fact that the autonomy and private information of the agents heavily influence the outcome of the auction. The main contribution of this paper is two-fold. First, we demonstrate how to apply machine learning techniques to solve the optimal ordering problem in sequential auctions. We learn regression models from historical auctions, which are subsequently used to predict the expected value of orderings for new auctions. Given the learned models, we propose two types of optimization methods: a black-box best-first search approach, and a novel white-box approach that maps learned models to integer linear programs (ILP) which can then be solved by any ILP-solver. Although the studied auction design problem is hard, our proposed optimization methods obtain good orderings with high revenues. Our second main contribution is the insight that the internal structure of regression models can be efficiently evaluated inside an ILP solver for optimization purposes. To this end, we provide efficient encodings of regression trees and linear regression models as ILP constraints. This new way of using learned models for optimization is promising. As the experimental results show, it significantly outperforms the black-box best-first search in nearly all settings.Comment: 37 pages. Working pape

Fair task allocation in transportation

Task allocation problems have traditionally focused on cost optimization. However, more and more attention is being given to cases in which cost should not always be the sole or major consideration. In this paper we study a fair task allocation problem in transportation where an optimal allocation not only has low cost but more importantly, it distributes tasks as even as possible among heterogeneous participants who have different capacities and costs to execute tasks. To tackle this fair minimum cost allocation problem we analyze and solve it in two parts using two novel polynomial-time algorithms. We show that despite the new fairness criterion, the proposed algorithms can solve the fair minimum cost allocation problem optimally in polynomial time. In addition, we conduct an extensive set of experiments to investigate the trade-off between cost minimization and fairness. Our experimental results demonstrate the benefit of factoring fairness into task allocation. Among the majority of test instances, fairness comes with a very small price in terms of cost

Creating incentives to prevent execution failures: an extension of VCG mechanism

When information or control in a multiagent planning system is private to the agents, they may misreport this information or refuse to execute an agreed outcome, in order to change the resulting end state of such a system to their benefit. In some domains this may result in an execution failure. We show that in such settings VCG mechanisms lose truthfulness, and that the utility of truthful agents can become negative when using VCG payments (i.e., VCG is not strongly individually rational). To deal with this problem, we introduce an extended payment structure which takes into account the actual execution of the promised outcome. We show that this extended mechanism can guarantee a nonnegative utility and is (i) incentive compatible in a Nash equilibrium, and (ii) incentive compatible in dominant strategies if and only if all agents can be verified during execution

Digital twin applications in urban logistics:an overview

Urban traffic attributed to commercial and industrial transportation is observed to largely affect living standards in cities due to external factors like pollution and congestion. To counter this, smart cities deploy technologies such as digital twins (DT)s to achieve sustainability. Research suggests that DTs can be beneficial in optimizing the physical systems they are linked with. The concept has been extensively studied in many technology-driven industries like manufacturing. However, little work has been done with regards to their application in urban logistics. In this paper, we seek to provide a framework by which DTs could be easily adapted to urban logistics applications. To do this, we survey previous research on DT applications in urban logistics as we found that a holistic overview is lacking. Using this knowledge in combination with the identification of key factors in urban logistics, we produce a conceptual model for the general design of an urban logistics DT through a knowledge graph. We provide an illustration on how the conceptual model can be used in solving a relevant problem and showcase the integration of relevant DDO methods. We finish off with a discussion on research opportunities and challenges based on previous research and our practical experience

Digital Twin Applications in Urban Logistics:An Overview

Urban traffic attributed to commercial and industrial transportation is observed to largely affect living standards in cities due to external effects pertaining to pollution and congestion. In order to counter this, smart cities deploy technological tools to achieve sustainability. Such tools include Digital Twins (DT)s which are virtual replicas of real-life physical systems that control the systems. Research points that DTs can be very beneficial in how they control a physical system by constantly optimizing its performance. The concept has been extensively studied in other technology-driven industries like manufacturing. However, little work has been done with regards to their application in urban logistics. In this paper, we seek to provide a framework by which DTs could be easily adapted to urban logistics networks. To do this, we provide a characterization of key factors in urban logistics for dynamic-decision making. We also survey previous research on DT applications in urban logistics as we found that a holistic overview is lacking. Using this knowledge in combination with the characterization, we produce a conceptual model that describes the ontology, learning capabilities and optimization prowess of an urban logistics digital twin through its quantitative models. We finish off with a discussion on potential research benefits and limitations based on previous research and our practical experience

Parcel loss prediction in last-mile delivery: deep and non-deep approaches with insights from Explainable AI

Within the domain of e-commerce retail, an important objective is the reduction of parcel loss during the last-mile delivery phase. The ever-increasing availability of data, including product, customer, and order information, has made it possible for the application of machine learning in parcel loss prediction. However, a significant challenge arises from the inherent imbalance in the data, i.e., only a very low percentage of parcels are lost. In this paper, we propose two machine learning approaches, namely, Data Balance with Supervised Learning (DBSL) and Deep Hybrid Ensemble Learning (DHEL), to accurately predict parcel loss. The practical implication of such predictions is their value in aiding e-commerce retailers in optimizing insurance-related decision-making policies. We conduct a comprehensive evaluation of the proposed machine learning models using one year data from Belgian shipments. The findings show that the DHEL model, which combines a feed-forward autoencoder with a random forest, achieves the highest classification performance. Furthermore, we use the techniques from Explainable AI (XAI) to illustrate how prediction models can be used in enhancing business processes and augmenting the overall value proposition for e-commerce retailers in the last mile delivery

Deep Reinforcement Learning for Adaptive Parameter Control in Differential Evolution for Multi-Objective Optimization

Evolutionary algorithms (EA) are efficient population-based stochastic algorithms for solving optimization problems. The performance of EAs largely depends on the configuration of values of parameters that control their search. Previous works studied how to configure EAs, though, there is a lack of a general approach to effectively tune EAs. To fill this gap, this paper presents a consistent, automated approach for tuning and controlling parameterized search of an EA. For this, we propose a deep reinforcement learning (DRL) based approach called ‘DRL-APC-DE’ for online controlling search parameter values for a multi-objective Differential Evolution algorithm. The proposed method is trained and evaluated on widely adopted multi-objective test problems. The experimental results show that the proposed approach performs competitively to a non-adaptive Differential Evolution algorithm, tuned by grid search on the same range of possible parameter values. Subsequently, the trained algorithms have been applied to unseen multi-objective problems for the adaptive control of parameters. Results show the successful ability of DRL-APC-DE to control parameters for solving these problems, which has the potential to significantly reduce the dependency on parameter tuning for the successful application of EAs