Research from Professor David Simchi-Levi shows that traditional sampling method can be used to address inventory constraints
Research from Professor David Simchi-Levi shows that the Thompson sampling method, developed in the 1930s, can be combined with a linear algorithm to address revenue management problems. Simchi-Levi demonstrates that the Thompson sampling can be naturally combined with a classical linear program formulation to include inventory constraints, and can be applied in airline, internet advertising and online retail industries. The paper was accepted for publication in Operations Research. Read more on MIT News.