Online Allocation with Unknown Shared Supply
Summary
This paper introduces the Online Shared Supply Allocation (OSSA) problem, a stateful online model for resource allocation in scenarios like humanitarian logistics and vaccine distribution, where a central hub distributes an unknown, finite supply to multiple sites facing sequential demand, incurring fixed-charge transportation costs and lost-sales penalties without backlogging. The authors propose GPA, a deterministic threshold-proportional policy, proving it achieves a 4/3-approximation to the offline optimum, with matching lower bounds confirming this ratio's tightness and the unavoidable additive-error dependence. Furthermore, a learning-augmented extension of GPA is developed to leverage imperfect forecasts from human experts or ML models, demonstrating superior performance over natural baselines in synthetic and real-world experiments, especially when global supply is scarce.
Key takeaway
This paper introduces the Online Shared Supply Allocation (OSSA) problem for pre-positioning unknown, finite supply across multiple sites facing sequential demand, critical for humanitarian logistics and vaccine distribution. The proposed GPA policy achieves a tight 4/3-approximation to the offline optimum and includes a learning-augmented extension that robustly integrates imperfect forecasts. GPA significantly outperforms baseline methods in scenarios with scarce global supply, offering a practical solution for critical resource allocation challenges.
Topics
- Online Shared Supply Allocation
- Resource Allocation
- Approximation Algorithms
- Learning-Augmented Algorithms
- Humanitarian Logistics
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Editorial summary, takeaway, and curation by AIssential. Original article published by cs.AI updates on arXiv.org.