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Original scientific paper
https://doi.org/10.17535/crorr.2014.0011

Markov decision processes in minimization of expected costs

Marija Rukav ; Department of Mathematics, Josip Juraj Strossmayer University of Osijek
Kruno Stražanac ; Farmeron d.o.o.
Nenad Šuvak ; Department of Mathematics, Josip Juraj Strossmayer University of Osijek
Zoran Tomljanović ; Department of Mathematics, Josip Juraj Strossmayer University of Osijek

Fulltext: english, pdf (336 KB) pages 247-257 downloads: 619* cite
APA 6th Edition
Rukav, M., Stražanac, K., Šuvak, N. & Tomljanović, Z. (2014). Markov decision processes in minimization of expected costs. Croatian Operational Research Review, 5 (2), 247-257. https://doi.org/10.17535/crorr.2014.0011
MLA 8th Edition
Rukav, Marija, et al. "Markov decision processes in minimization of expected costs." Croatian Operational Research Review, vol. 5, no. 2, 2014, pp. 247-257. https://doi.org/10.17535/crorr.2014.0011. Accessed 12 Dec. 2019.
Chicago 17th Edition
Rukav, Marija, Kruno Stražanac, Nenad Šuvak and Zoran Tomljanović. "Markov decision processes in minimization of expected costs." Croatian Operational Research Review 5, no. 2 (2014): 247-257. https://doi.org/10.17535/crorr.2014.0011
Harvard
Rukav, M., et al. (2014). 'Markov decision processes in minimization of expected costs', Croatian Operational Research Review, 5(2), pp. 247-257. https://doi.org/10.17535/crorr.2014.0011
Vancouver
Rukav M, Stražanac K, Šuvak N, Tomljanović Z. Markov decision processes in minimization of expected costs. Croatian Operational Research Review [Internet]. 2014 [cited 2019 December 12];5(2):247-257. https://doi.org/10.17535/crorr.2014.0011
IEEE
M. Rukav, K. Stražanac, N. Šuvak and Z. Tomljanović, "Markov decision processes in minimization of expected costs", Croatian Operational Research Review, vol.5, no. 2, pp. 247-257, 2014. [Online]. https://doi.org/10.17535/crorr.2014.0011

Abstracts
Basics of Markov decision processes will be introduced in order to obtain the optimization goal function for minimizing the long-run expected cost. We focus on mini-mization of such cost of the farmer's policy consisting of different decisions in speci c states regarding both milk quality and quantity (lactation states) produced by a dairy cow. The transition probability matrix of the Markov process, used here for modeling of transitions of a dairy cow from one state to another, will be estimated from the data simulated from the lactation model that is often used in practice. We want to choose optimal actions in the states of this Markov process regarding the farmer's costs. This problem can be solved by exhaustive enumeration of all possible cases in order to obtain the optimal policy. How-ever, this is feasible only for a small number of states. Generally, this problem can be approached in the linear programming setting which yields an efficient solution. In order to demonstrate and compare these two approaches, we present an example based on the simulated data regarding milk quality and quantity.

Keywords
Linear programming methods; long-run expected cost; Markov decision pro-cess; stationary distribution; optimal policy

Hrčak ID: 133700

URI
https://hrcak.srce.hr/133700

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