Competitive Online Optimization under Inventory Constraints

Joint work with Qiulin Lin, Hanling Yi from The Chinese University of Hong Kong, John Pang and Adam Wierman from Caltech, Mike Honig from Northwestern University, and Yuanzhang Xiao from University of Hawaii.

We study online optimization under inventory (budget) constraints. While online optimization is a well-studied topic, versions with inventory constraints have proven difficult. We consider a formulation of inventory-constrained optimization that is a generalization of the classic one-way trading problem and has a wide range of applications. We present a new algorithmic framework, CR-Pursuit, and prove that it achieves the minimal competitive ratio among all deterministic algorithms (up to a problem-dependent constant factor) for inventory-constrained online optimization. Our algorithm and its analysis not only simplify and unify the state-ofthe-art results for the standard one-way trading problem, but they also establish novel bounds for generalizations including concave revenue functions. For example, for one-way trading with price elasticity , the CR-Pursuit algorithm achieves a competitive ratio that is within a small additive constant (i.e., 1/3) to the lower bound of lntheta +1, where theta is the ratio between the maximum and minimum base prices.

In another work, we show that the CR-Pursuit framework can also be used to provide “beyond worst case” results by parameterizing the bound in different ways by, for example, utilizing properties of the instances relevant to the online EV charging scenario with both charging cost and user dissatisfaction taken into account, and adaptively considering the input seen so far. The result is an online algorithm with the best possible worst-case performance as well as adaptively optimized average-case performance.

Publications

  • Q. Lin*, H. Yi*, J. Pang, M. Chen, A. Wierman, M. Honig, and Y. Xiao, “Competitive Online Optimization under Inventory Constraints”, in Proceedings of ACM SIGMETRICS / IFIP Performance, Phoenix, Arizona, June 24 - 28, 2019. [PDF] (The first two authors contribute equally to the work.)

  • H. Yi*, Q. Lin*, and M. Chen, “Balancing Cost and Dissatisfaction in Online EV Charging under Real-time Pricing”, in Proceedings of IEEE INFOCOM, Paris, France, April 29 - May 2, 2019. [PDF] (The first two authors contribute equally to the work.)