Abstract: In this paper, the joint optimization of the
economic manufacturing quantity (EMQ), safety stock level,
and condition-based maintenance (CBM) is presented for a partially
observable, deteriorating system subject to random failure. The
demand is stochastic and it is described by a Poisson process.
The stochastic model is developed and the optimization problem
is formulated in the semi-Markov decision process framework. A
modification of the policy iteration algorithm is developed to find
the optimal policy. A numerical example is presented to compare
the optimal policy with the policy considering zero safety stock.
Abstract: This paper presents a new problem solving approach
that is able to generate optimal policy solution for finite-state
stochastic sequential decision-making problems with high data
efficiency. The proposed algorithm iteratively builds and improves
an approximate Markov Decision Process (MDP) model along with
cost-to-go value approximates by generating finite length trajectories
through the state-space. The approach creates a synergy between an
approximate evolving model and approximate cost-to-go values to
produce a sequence of improving policies finally converging to the
optimal policy through an intelligent and structured search of the
policy space. The approach modifies the policy update step of the
policy iteration so as to result in a speedy and stable convergence to
the optimal policy. We apply the algorithm to a non-holonomic
mobile robot control problem and compare its performance with
other Reinforcement Learning (RL) approaches, e.g., a) Q-learning,
b) Watkins Q(λ), c) SARSA(λ).