Partially Observed Markov Decision Processes with Binomial Observations
Operations Research Letters 41 (2013) 201–206
6 Pages Posted: 15 Feb 2014
Date Written: February 14, 2014
We consider partially observed Markov decision processes with control limits. We analytically show how the finite-horizon control limits are non-monotonic in (a) the time remaining and (b) the probability of obtaining a conforming unit. We also prove that the infinite-horizon control limit can be calculated by solving a finite set of linear equations.
Keywords: POMDP, Binomial yield, Control limit
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