Consider a dynamic decision making model under risk with a fixed planning horizon, namely the dynamic capacity control model. The model describes a firm, operating in a monopolistic setting and selling a range of products consuming a single resource. Demand for each product is time-dependent and modeled by a random variable. The firm controls the revenue stream by allowing or denying customer requests for product classes. We investigate risk-sensitive policies in this setting, for which risk concerns are important for many non-repetitive events and short-time considerations.Numerically analyzing several risk-averse capacity control policies in terms of standard deviation and conditional-value-at-risk, our results show that only a slight modification of the risk-neutral solution is needed to apply a risk-averse policy. In particular, risk-averse policies which decision rules are functions depending only on the marginal values of the riskneutral policy perform well. From a practical perspective, the advantage is that a decision maker does not need to compute any risk-averse dynamic program. Risk sensitivity can be easily achieved by implementing risk-averse functional decision rules based on a risk-neutral solution.
Visualization and image processing of medical datasets has become an essential task for clinical diagnosis support as well as for treatment planning. In order to enable a physician to use and evaluate algorithms within a clinical setting, easily applicable software prototypes with a dedicated user interface are essential. However, substantial programming knowledge is still required today when using powerful open source libraries such as the Visualization Toolkit (VTK) or the Insight Toolkit (ITK). Moreover, these toolkits provide only limited graphical user interface functionality. In this paper, we present the visual programming and rapid prototyping platform MeVisLab which provides flexible and simple handling of visualization and image processing algorithms of VTK/ITK, Open Inventor and the MeVis Image Library by modular visual programming. No programming knowledge is required to set up image processing and visualization pipelines. Complete applications including user interfaces can be easily built within a general framework. In addition to the VTK/ITK features, MeVisLab provides a full integration of the Open Inventor library and offers a state-of-the-art integrated volume renderer. The integration of VTK/ITK algorithms is performed automatically: an XML structure is created from the toolkits' source code followed by an automatic module generation from this XML description. Thus, MeVisLab offers a one stop solution integrating VTK/ITK as modules and is suited for rapid prototyping as well as for teaching medical visualization and image analysis. The VTK/ITK integration is available as package of the free version of MeVisLab
We consider the problem of a firm selling multiple products that consume a single resource over a finite time period. The amount of the resource is exogenously fixed. We analyze the difference between a dynamic pricing policy and a list price capacity control policy. The dynamic pricing policy adjusts prices steadily resolving the underlying problem every time step, whereas the list pricing policy sets static prices once but controls the capacity by allowing or preventing product sales.As steady price changes are often costly or unachievable in practice, we investigate the question of how much riskier it is to apply a list pricing policy rather than a dynamic pricing policy. We conduct several numerical experiments and compare expected revenue, standard deviation, and conditional-value-at-risk between the pricing policies. The differences between the policies show that list pricing can be a useful strategy when dynamic pricing is costly or impractical.
Consider a risk-averse decision maker in the setting of a single-leg dynamic revenue management problem with revenue controlled by limiting capacity for a fixed set of prices. Instead of focussing on maximising the expected revenue, the decision maker has the main objective of minimising the risk of failing to achieve a given target revenue. Interpreting the revenue management problem in the framework of finite Markov decision processes, we augment the state space of the risk-neutral problem definition and change the objective function to the probability of failing a certain specified target revenue. This enables us to obtain a dynamic programming solution that generates the policy minimising the risk of not attaining this target revenue. We compare this solution with recently proposed risk-sensitive policies in a numerical study and discuss advantages and limitations.
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