Part 1: Generic Tools -- Chapter 1: The Stochastic Multi-armed Bandit Problem -- Chapter 2: Reinforcement Learning -- Chapter 3: Optimal Learning and Optimal Design -- Part 2: Price Optimization -- Chapter 4: Dynamic Pricing with Demand Learning: Emerging Topics and State of the Art -- Chapter...

We study the problem of how to design a sparse flexible process structure in a balanced and symmetrical production system to match supply with random demand more effectively. Our goal is to provide an optimal design, i.e., the sparsest design, to achieve (1-ε)-optimality relative to the fully...