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Yoonju Sim, Federico Berto, Chuanbo Hua, Jinkyoo Park, Changhyun Kwon. LLM-Driven Algorithm Design for Quantum Circuit Synthesis based on Binary Decision Diagrams Transactions on
Machine Learning Research, accepted. arXiv abstract
Quantum circuits are central to implementing quantum algorithms on quantum devices, where quantum
gates must be reversible. Many quantum algorithms rely on Boolean functions, which must therefore be
implemented reversibly within quantum circuits. Reversible circuit synthesis provides a way to translate
such Boolean functions into reversible circuits. Binary decision diagrams (BDDs) offer a scalable
approach to this task, but the resulting BDDs and circuits depend heavily on variable ordering.
Existing ordering heuristics commonly minimize BDD size because it is closely tied to the
circuit size. However, BDD size is an imperfect proxy for the quantum cost of the synthesized
circuit (QCC). We propose QuantumEvo, an evolutionary framework that uses an LLM as a
heuristic generator for QCC-aware BDD variable ordering. Instead of predicting orderings
directly, QuantumEvo searches over ordering heuristics initialized from multiple heuristic families.
Candidate heuristics directly manipulate variable orderings using standard BDD operations and
are selected by downstream QCC. The discovered heuristic, HGA-QE, modifies the sifting
step inside a genetic algorithm so that the procedure is better aligned with QCC. Across the
benchmark set, HGA-QE achieves a 70.9% tie-or-win rate against the per-function best baseline
and is strictly best on 13.5% of the functions. The results demonstrate broadly competitive
QCC performance, with HGA-QE showing a clearer relative advantage in strict wins on the
two benchmark suites drawn from sources different from the data used for heuristic discovery
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Youngjun Park, Jihye Na, Keonhee Jang, Dongman Lee, Changhyun Kwon, Yoonjin Yoon. Food Deserts in Context: How Site-Specific Factors Reshape Food Deserts Discussion. npj Urban
Sustainability, accepted. pdf ssrn
doi abstract
Research on food deserts has evolved from a narrow focus on geographical distance to a comprehensive
framework considering socioeconomic, infrastructural, and cultural factors. This review synthesizes global
literature to examine how local contexts reshape food desert definitions, measurement, and interventions.
We find a clear shift from distance-based metrics to multidimensional analyses incorporating affordability,
mobility, and local food environments. Correspondingly, interventions are diverse, spanning from
supermarket investments to digital platforms, with effectiveness highly dependent on site-specific conditions
like urban density or social capital. We conclude that addressing food deserts demands integrated,
context-sensitive policies, as a one-size-fits-all approach is insufficient. Future research should leverage
mobility data, online food access trends, and localized models to build more effective food security
strategies.
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Xufei Liu, Sung Hoon Chung, Changhyun Kwon (2025) An Adaptive Large Neighborhood Search Method for the Drone-Truck Arc Routing Problem. Computers & Operations Research, 176,
106959. pdf doi
abstract
For applications such as traffic monitoring, infrastructure inspection, and security, ground vehicles (trucks)
and unmanned aerial vehicles (drones) may collaborate to finish the task more efficiently. This paper
considers an Arc Routing Problem (ARP) with a mixed fleet of a single truck and multiple homogeneous
drones, called a Drone-Truck Arc Routing Problem (DT-ARP). While the truck must follow a road
network, the drone can fly off of it. With a limited battery capacity, however, the drone has a length
constraint, i.e., the maximum flight range. A truck driver can replace a battery for the drone after each
flight trip. We first transform the DT-ARP into a node routing problem, for which we present
a MIP formulation for the case with a truck and a drone. To solve large-size instances with
multiple drones, a heuristic method based on Adaptive Large Neighborhood Search (ALNS) is
proposed. The performance of ALNS is evaluated on small-size randomly generated instances and
large-size undirected rural postman problem benchmark instances. In addition, an analysis is
provided on the relationship between truck/drone speeds and the drone’s flight range, which
affects the difficulty level to solve. The robustness of ALNS is shown via numerical experiments.
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Abhay Sobhanan, Junyoung Park, Jinkyoo Park, Changhyun Kwon (2025) Genetic Algorithms with Neural Cost Predictor for Solving Hierarchical Vehicle Routing Problems. Transportation Science,
59(2), 207–450. arXiv doi
github abstract
When vehicle routing decisions are intertwined with higher-level decisions, the resulting optimization
problems pose significant challenges for computation. Examples are the multi-depot vehicle routing
problem (MDVRP), where customers are assigned to depots before delivery, and the capacitated
location routing problem (CLRP), where the locations of depots should be determined first. A
simple and straightforward approach for such hierarchical problems would be to separate the
higher-level decisions from the complicated vehicle routing decisions. For each higher-level
decision candidate, we may evaluate the underlying vehicle routing problems to assess the
candidate. As this approach requires solving vehicle routing problems multiple times, it has been
regarded as impractical in most cases. We propose a novel deep-learning-based approach called
Genetic Algorithm with Neural Cost Predictor (GANCP) to tackle the challenge and simplify
algorithm developments. For each higher-level decision candidate, we predict the objective function
values of the underlying vehicle routing problems using a pre-trained graph neural network
without actually solving the routing problems. In particular, our proposed neural network learns
the objective values of the HGS-CVRP open-source package that solves capacitated vehicle
routing problems. Our numerical experiments show that this simplified approach is effective
and efficient in generating high-quality solutions for both MDVRP and CLRP and has the
potential to expedite algorithm developments for complicated hierarchical problems. We provide
computational results evaluated in the standard benchmark instances used in the literature.
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Sasan Mahmoudinazlou, Changhyun Kwon (2024) A Hybrid Genetic Algorithm with Type-Aware Chromosomes for Traveling Salesman Problems with Drone. European Journal of Operational Research,
318(3), pp. 719–739. arXiv doi
github abstract
There are emerging transportation problems known as the Traveling Salesman Problem with Drone
(TSPD) and the Flying Sidekick Traveling Salesman Problem (FSTSP) that involve using a drone in
conjunction with a truck for package delivery. This study presents a hybrid genetic algorithm for solving
TSPD and FSTSP by incorporating local search and dynamic programming. Similar algorithms exist in
the literature. Our algorithm, however, considers more sophisticated chromosomes and less
computationally complex dynamic programming to enable broader exploration by the genetic
algorithm and efficient exploitation through dynamic programming and local search. The key
contribution of this paper is the discovery of how decision-making processes for solving TSPD and
FSTSP should be divided among the layers of genetic algorithm, dynamic programming, and
local search. In particular, our genetic algorithm generates the truck and the drone sequences
separately and encodes them in a type-aware chromosome, wherein each customer is assigned to
either the truck or the drone. We apply local search to each chromosome, which is decoded by
dynamic programming for fitness evaluation. Our new algorithm is shown to outperform existing
algorithms on most benchmark instances in both quality and time. Our algorithms found the
new best solutions for 538 TSPD instances out of 920 and 74 FSTSP instances out of 132.
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Hyeonah Kim, Jinkyoo Park, Changhyun Kwon (2024) A Neural Separation Algorithm for the Rounded Capacity Inequalities. INFORMS Journal on Computing, 36(4), pp.
987–1005. (a featured article in the July/August 2024 issue of IJOC) arXiv
doi github abstract
The cutting plane method is a key technique for successful branch-and-cut and branch-price-and-cut
algorithms that find the exact optimal solutions for various vehicle routing problems (VRPs). Among
various cuts, the rounded capacity inequalities (RCIs) are the most fundamental. To generate RCIs, we
need to solve the separation problem, whose exact solution takes a long time to obtain; therefore, heuristic
methods are widely used. We design a learning-based separation heuristic algorithm with graph coarsening
that learns the solutions of the exact separation problem with a graph neural network (GNN), which is
trained with small instances of 50 to 100 customers. We embed our separation algorithm within the
cutting plane method to find a lower bound for the capacitated VRP (CVRP) with up to 1,000
customers. We compare the performance of our approach with CVRPSEP, a popular separation
software package for various cuts used in solving VRPs. Our computational results show that our
approach finds better lower bounds than CVRPSEP for large-scale problems with more than 300
customers, while CVRPSEP shows strong competency for problems with less than 300 customers.
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Sasan Mahmoudinazlou, Changhyun Kwon (2024) A Hybrid Genetic Algorithm for the min-max Multiple Traveling Salesman Problem. Computers & Operations Research,
162, 106455. arXiv doi
github abstract
This paper proposes a hybrid genetic algorithm for solving the Multiple Traveling Salesman Problem
(mTSP) to minimize the length of the longest tour. The genetic algorithm utilizes a TSP sequence as the
representation of each individual, and a dynamic programming algorithm is employed to evaluate the
individual and find the optimal mTSP solution for the given sequence of cities. A novel crossover
operator is designed to combine similar tours from two parents and offers great diversity for the
population. For some of the generated offspring, we detect and remove intersections between tours to
obtain a solution with no intersections. This is particularly useful for the min-max mTSP. The
generated offspring are also improved by a self-adaptive random local search and a thorough
neighborhood search. Our algorithm outperforms all existing algorithms on average, with similar
cutoff time thresholds, when tested against multiple benchmark sets found in the literature.
Additionally, we improve the best-known solutions for 21 out of 89 instances on four benchmark sets.
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Xufei Liu, Sang Won Kim, Changhyun Kwon (2023) An Adaptive Large Neighborhood Search Method for Rebalancing Free-Floating Electric Vehicle Sharing Systems. Computers & Operations Research, 155,
106220. pdf doi
abstract
Free-floating electric vehicle sharing systems allow users to pick up an available electric vehicle
(EV) and return it to any permissible parking location within a service area. Such service
flexibility can drive a severe spatial imbalance between vehicle availability and trip demands.
Hence, it is an important part of their operations to relocate the EV fleet to meet the next
day’s demand with sufficient battery levels. This relocation operation involves a complicated
routing problem for a fleet of shuttles to transport the staff drivers who recharge, if necessary,
and relocate the EVs to proper demand locations. Characterized by unique hierarchical and
interdependent decisions, the EV relocation and shuttle routing problem poses significant computational
challenges for large-scale problems. We devise an efficient algorithm that adapts the Adaptive Large
Neighborhood Search (ALNS) metaheuristic framework to overcome such unique challenges. The
algorithm is tested on two sets of data: randomly generated data and real-world EV-sharing
usage data in Amsterdam. The results validate the efficiency and effectiveness of our ALNS
algorithm. In addition, the analysis of total operational cost and waiting time percentage provides
practical recommendations to decision-makers on choosing the mode of staff transportation (e.g.,
shuttles vs. personal mobility such as scooters). Lastly, our numerical results also highlight the
usefulness of our ALNS method, which is quite flexible to be applied to a dynamic environment
where some EV demands are removed or added in the course of EV relocation operations.
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Aigerim Bogyrbayeva, Taehyun Yoon, Hanbum Ko, Sungbin Lim, Hyokun Yun, Changhyun Kwon (2023) A Deep Reinforcement Learning Approach for Solving the Traveling Salesman Problem with Drone.
Transportation Research Part C: Emerging Technologies, 148, 103981 arXiv
doi github abstract
Reinforcement learning has recently shown promise in learning quality solutions in many combinatorial
optimization problems. In particular, the attention-based encoder-decoder models show high effectiveness
on various routing problems, including the Traveling Salesman Problem (TSP). Unfortunately, they
perform poorly for the TSP with Drone (TSP-D), requiring routing a heterogeneous fleet of vehicles in
coordination—a truck and a drone. In TSP-D, the two vehicles are moving in tandem and may need to wait
at a node for the other vehicle to join. State-less attention-based decoder fails to make such coordination
between vehicles. We propose a hybrid model that uses an attention encoder and a Long Short-Term
Memory (LSTM) network decoder, in which the decoder’s hidden state can represent the sequence of
actions made. We empirically demonstrate that such a hybrid model improves upon a purely
attention-based model for both solution quality and computational efficiency. Our experiments on the
min-max Capacitated Vehicle Routing Problem (mmCVRP) also confirm that the hybrid model is more
suitable for the coordinated routing of multiple vehicles than the attention-based model. The
proposed model demonstrates comparable results as the operations research baseline methods.
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Zulqarnain Haider, Yujie Hu, Hadi Charkhgard, David Himmelgreen, Changhyun Kwon (2022) Creating Grocery Delivery Hubs for Food Deserts at Local Convenience Stores via Spatial and Temporal Consolidation.
Socio-Economic Planning Sciences, 82(B), 101301. doi
pdf abstract
For many socioeconomically disadvantaged customers living in food deserts, the high costs and minimum
order size requirements make attended grocery deliveries financially non-viable, although it
has potential to provide healthy foods to the food insecure population. This paper proposes
consolidating customer orders and delivering to a neighborhood convenience store instead of home
delivery. We employ an optimization framework involving the minimum cost set covering and the
capacitated vehicle routing problems. Our experimental studies in three counties in the U.S.
suggest that by spatial and temporal consolidation of orders, the deliverer can remove minimum
order-size requirements and reduce the delivery costs, depending on various factors, compared to
attended home-delivery. We find the number and size of time windows for home delivery to
be the most important factor in achieving temporal consolidation benefits. Other significant
factors in achieving spatial consolidation include the capacity of delivery vehicles, the number of
depots, and the number of customer orders. We also find that the number of partner convenience
stores and the walkable distance parameter of the model, have a significant impact on the
number of accepted orders, i.e., the service level provided by the deliverer. The findings of this
study imply consolidated grocery delivery as a viable solution to improve fresh food access
in food deserts. In light of the recent global pandemic, and its exacerbating effects on food
insecurity, the innovative solution proposed in this paper is even more relevant and timely.
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Aigerim Bogyrbayeva, Sungwook Jang, Ankit Shah, Young Jae Jang, Changhyun Kwon
(2020) A Reinforcement Learning Approach for Rebalancing Electric Vehicle Sharing Systems. IEEE Transactions on Intelligent Transportation Systems, 23(7),
8704–8714. doi arXiv
pdf github
abstract
This paper proposes a reinforcement learning approach for nightly offline rebalancing operations in
free-floating electric vehicle sharing systems (FFEVSS). Due to sparse demand in a network, FFEVSS
require relocation of electrical vehicles (EVs) to charging stations and demander nodes, which is typically
done by a group of drivers. A shuttle is used to pick up and drop off drivers throughout the network. The
objective of this study is to solve the shuttle routing problem to finish the rebalancing work in the minimal
time. We consider a reinforcement learning framework for the problem, in which a central controller
determines the routing policies of a fleet of multiple shuttles. We deploy a policy gradient method for
training recurrent neural networks and compare the obtained policy results with heuristic solutions. Our
numerical studies show that unlike the existing solutions in the literature, the proposed methods
allow to solve the general version of the problem with no restrictions on the urban EV network
structure and charging requirements of EVs. Moreover, the learned policies offer a wide range of
flexibility resulting in a significant reduction in the time needed to rebalance the network.
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Aigerim Bogyrbayeva, Changhyun Kwon (2021) Pessimistic Evasive Flow Capturing Problems. European Journal of Operational Research, 293(1), 133-148.
doi pdf
abstract
The evasive flow capturing problem (EFCP) is to locate a set of law enforcement facilities to intercept
unlawful flows. One application of the EFCP is the location problem of weight-in-motion systems deployed
by authorities to detect overloaded vehicles characterized by evasive behavior. Although optimistic bilevel
formulations of the EFCP are studied in the literature, we provide two pessimistic formulations
by relaxing the assumption on the optimizing behavior of unlawful travelers and capturing
the ambiguity of travelers’ route choices. While the first pessimistic formulation yields the
most robust network design, the second pessimistic formulation can flexibly control the level of
pessimism on the behavior of followers between optimistic and overly pessimistic. The resulting
formulations yield a robust network design and represent realistic behavior of drivers. The
pessimistic formulations introduce another level in the optimization problem, for which we propose a
cutting plane algorithm. The proposed solution methods demonstrate their effectiveness on
real and randomly generated networks. We also compute the value of pessimistic solutions.
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Aigerim Bogyrbayeva, Mahdi Takalloo, Hadi Charkhgard, Changhyun Kwon (2021) An Iterative Combinatorial Auction Design for Fractional Ownership of Autonomous Vehicles. International
Transactions in Operational Research, 28(4), 1681–1705. doi
pdf abstract
This study designs a new market for fractional ownership of autonomous vehicles (AVs), in which an AV is
co-leased by a group of individuals. We present a practical iterative auction based on the combinatorial
clock auction to match the interested customers together and determine their payments. In
designing such an auction, we consider continuous-time items (time slots) which are defined by
bidders and naturally exploit driverless mobility of AVs to form co-leasing groups. To relieve the
computational burdens of both bidders and the auctioneer, we devise user agents who generate
packages and bid on behalf of bidders. Through numerical experiments using the California
2010–2012 travel survey, we test the performance of the auction design. We also compare various
bidding strategies and study the effect of activity rules on the bidders’ payoffs. We find that
the designed activity rules successfully remove the strategic behavior of bidders. We also find
that core-selecting payment rule brings the largest revenue to the auctioneer in most cases.
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Mahdi Takalloo, Aigerim Bogyrbayeva, Hadi Charkhgard, Changhyun Kwon (2021) Solving the Winner Determination Problem in Combinatorial Auctions for Fractional Ownership of Autonomous Vehicles. International
Transactions in Operational Research, 28(4), 1658–1680. doi
pdf Fractional Ownership; Combinatorial Auction; Bidder-Defined Items; Clique abstract
The introduction of autonomous vehicles to consumer markets will expedite the trend of car-sharing
and enable co-owning or co-leasing a car. In this paper, we consider a combinatorial auction
market for fractional ownership of autonomous vehicles, which is unique in two aspects. First,
items are neither pre-defined nor discrete; rather, items are continuous time slots defined by
bidders. Second, the spatial information of bidders should be incorporated within the winner
determination problem so that sharing a vehicle is indeed a viable plan. The consideration of spatial
information increases the computational complexity significantly. We formulate the winner
determination problem, which plays a critical role in various auction designs and pricing schemes,
for both discrete- and continuous-time settings. In terms of social welfare maximization, we
show that the continuous-time model is superior to the discrete-time model. We provide a
conflict-based reformulation of the continuous-time model, for which we develop an effective solution
approach based on a heuristic and maximal-clique based reformulations. Using samples of the
2010–2012 California Household Travel Survey, we verify that the proposed solution methods
provide effective computational tools for the combinatorial auction with bidder-defined items.
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Mahdi Takalloo, Changhyun Kwon (2020) On the Price of Satisficing in Network User Equilibria. Transportation Science, 54(6),
1555–1570. doi arXiv
pdf bounded rationality; satisficing; user equilibrium; sensitivity analysis abstract
When drivers are satisficing decision-makers, the resulting traffic pattern attains a satisficing user
equilibrium, which may deviate from the (perfectly rational) user equilibrium. In a satisficing user
equilibrium traffic pattern, the total system travel time can be worse than in the case of the PRUE. We
show how bad the worst-case satisficing user equilibrium traffic pattern can be, compared to the perfectly
rational user equilibrium. We call the ratio between the total system travel times of the two traffic patterns
the price of satisficing, for which we provide an analytical bound. Using the sensitivity analysis for
variational inequalities, we propose a numerical method to quantify the price of satisficing for any given
network instance.
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Kevin A. Melendez, Tapas K. Das, Changhyun Kwon (2020) A Nash-bargaining Model for Trading of Electricity Between Aggregations of Peers. International Journal of Electrical
Power and Energy Systems, 123, 106185. doi
pdf Aggregation of peers; peer-to-peer energy trading; option contract; Nash bargaining solution abstract
In the last several years, the growth in household solar generation and the lack of success of the
feed-in-tariff programs have led to the rise of peer-to-peer (P2P) energy trading schemes among prosumers.
However, a change that has started more recently is the growth of smart homes and businesses, of which
loads are IoT controlled and are supported by advanced metering infrastructure (AMI). This has
created a new opportunity for smart homes and businesses to form aggregations (coalitions) and
participate in cooperative load management and energy trading. Unlike energy trading among
individual prosumers in most P2P networks, a new trading opportunity that is emerging is between
aggregations of peers of smart homes and businesses and electric vehicles (EVs). In this paper, we
consider one such trading scenario between two aggregations, of which one has smart homes
and businesses with load consuming entities (not prosumers), and the other has EVs only.
The aggregation with smart homes and businesses derive cost reduction through optimal load
scheduling based on load preferences, market-based pricing of electricity, and opportunity to
trade (buy) energy from the aggregation with EVs. Whereas the aggregation of EVs optimally
schedules charging to meet EV needs and uses stored energy to trade (sell). A generalized
Nash bargaining model is developed for obtaining optimal trading strategies in the form of
plain or swing option contracts. A sample numerical problem scenario is used to show that
suitable contracts can be derived that allow aggregations of peers to mutually benefit from
energy trading. Interactions among contract parameters (such as strike price, option value,
and option quantity) and the relative market power of the aggregations are also examined.
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Kevin A. Melendez, Tapas K. Das, Changhyun Kwon (2020) Optimal operation of a system of charging hubs and a fleet of shared autonomous electric vehicles. Applied Energy, 279, 115861.
doi pdf Shared autonomous electric vehicles, cyber-physical system, ACOPF, energy arbitrage, robust optimization, stochastic optimization
abstract
Shared autonomous electric vehicles (SAEVs) are expected to serve a significant fraction of the passenger
transportation needs in cities and surrounding urban areas. In this paper, we consider optimal operation of
a cyber-physical system (CPS) comprising a large fleet of SAEVs and a set of charging hubs located
across the transportation network and supported by the power grid. The hubs are considered
to have a number of charging stations, a stand-alone battery bank for energy storage, and
limited rooftop photo-voltaic (PV) generation capacity. We developed a robust mixed integer
linear programming model. It considers a number of practical features of both the power and
transportation systems, including day-ahead load commitment for electricity via an alternative
current power flow model, real time price spikes of electricity, energy arbitrage, uncertainty
in passenger demand, and balking of passengers while waiting for a ride. We demonstrated
our methodology by implementing it on a sample CPS with 500 SAEVs and five hubs with
fifty charging stations in each. Our methodology yields operational decisions for day ahead
commitment of power and real time control of the SAEVs and the hubs. The sample CPS is used
to examine impact of hub capacity and fleet size on various system performance measures.
We discuss the computational challenges of our methodology and propose a simplified myopic
approach that is capable of dealing with much larger fleet sizes and a variety of hub capacities.
Reduction in computation time and the optimality gap for the myopic approach are examined.
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Liu Su, Changhyun Kwon (2020) Risk-Averse Network Design with Behavioral Conditional Value-at-Risk for Hazardous Materials Transportation. Transportation Science, 54(1), 184–203. doi
pdf transportation; hazardous materials; network design; conditional value-at-risk; Benders decomposition abstract
We consider a road-ban problem in hazardous materials (hazmat) transportation. We formulate the
problem as a network design problem to select a set of closed road segments for hazmat traffic and obtain a
bi-level optimization problem. While modeling probabilistic route-choices of hazmat carriers by the random
utility model (RUM) in the lower level, we consider a risk-averse measure called conditional value-at-risk
(CVaR) in the upper level, instead of the widely used expected risk measure. Using RUM and CVaR, we
quantify the risk of having hazmat accidents and large consequences, and design the network policy for
road-bans accordingly. While CVaR has been used in hazmat routing problems, this paper is the first
attempt to apply CVaR in risk averse hazmat network design problems considering stochastic
route-choices of hazmat carriers. The resulting problem is a mixed integer nonlinear programming
problem, for which we devise a line search approach combined with Benders decomposition. We
demonstrate the efficiency of the proposed computational method with case studies. The average
computation time for a network with 105 nodes and 268 arcs is 3 hours. Commercial solvers are
inadequate to solve this problem, because the optimality gap is 99.9% after 24 hours just for a
linear subproblem. By applying CVaR to the route-choice behavior of hazmat carriers, we
protect the road network from undesirable route-choices that may lead to severe consequences.
We define the Value of RUM-CVaR Solutions (VRCS) over the deterministic model based on
shortest-path problems and the expected risk measure. Our case study shows that VRCS can
range from 4.9% to 64.1% depending on the probability threshold used in the CVaR measure.
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Anpeng Zhang, Jee Eun Kang, Changhyun Kwon (2020) Generalized Stable User Matching for Autonomous Vehicle Co-ownership Programs. Service Science, 12(2–3), 61–79.
doi pdf autonomous vehicles; stable matching; roommate matching; car sharing system; vehicle ownership; fractional ownership
abstract
We investigate a new form of car sharing system that can be introduced in the market for autonomous
vehicles, called fractional ownership or co-ownership. While dynamic ride sharing provides ad-hoc shared
mobility services without any long-term commitment, we consider co-ownership programs with which users
can still “own” a car with committed usages and ownership. We assume that an autonomous vehicle is
shared by a group of users, which is only accessible by the group. We use stable matching to help users find
an appropriate group to share an autonomous vehicle and present a generalized stable matching model that
allows flexible sizes of groups as well as various alternative objectives. We also present a heuristic
algorithm to improve computational time due to the combinatorial property of the problem.
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Anpeng Zhang, Jee Eun Kang, Changhyun Kwon (2020) Multi-day Scenario Analysis for Battery Electric Vehicle Feasibility Assessment and Charging Infrastructure Planning. Transportation Research Part
C: Emerging Technologies, 111, 439–457. doi
pdf activity-travel patterns; battery electric vehicle; charging infrastructure planning; level 3 charging abstract
Multi-day activity-travel patterns help create potential vehicle usage profiles that contain vehicle
operations and battery status under different scenarios with varying location-based charging opportunities,
based on travel needs and charging availability/behaviors. Utilizing a multi-day data sampling method,
analyses of scenarios are designed to provide insights on bounds of potential BEV market under different
charging opportunities, including level 2 activity charging and level 3 trip charging. Single-day data results
tend to overestimate travelers’ BEV feasibility assuming that multi-day sample data provides accurate
estimations. Facility utilization can be improved without affecting travelers’ charging demand under correct
pricing scheme for most cost-sensitive users. Smart grid charging strategy can greatly reduce the
total number of operating chargers during the same time in a day, and BEV users’ charging
behaviors have minor impact on this improvement. Our numerical results indicate that an
appropriate number of chargers installed in shopping and leisure locations should be more
profitable and have higher charger utilization rate since those chargers help cover BEV users’ trips.
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Masoumeh Taslimi, Rajan Batta, Changhyun Kwon (2020) Medical Waste Collection Considering Transportation and Storage Risk. Computers & Operations Research, 120,
104966. doi pdf medical waste collection; hazardous materials transportation; vehicle routing; decomposition-based heuristic
abstract
We consider a Periodic Load-dependent Capacitated Vehicle Routing Problem (PLCVRP) encountered by
healthcare centers and medical waste collection companies for the design of a weekly inventory routing
schedule to transport medical wastes to treatment sites. In addition to minimization of transportation risk,
occupational risk related to temporary storage of hazardous wastes at the healthcare centers is considered.
The transport risk on each arc is dependent on the weight of hazardous medical waste on the vehicle
when it traverses that arc. We devise a decomposition based heuristic algorithm to solve this
problem. We analyze the characteristics of the PLCVRP’s solutions with respect to four different
criteria: (i) transport and occupational risk, (ii) transport risk, (iii) occupational risk, and (iv)
transportation cost. Solving different versions of PLCVRP reveals that minimizing both transport and
occupational risk on the network can aid decision makers to develop a better routing schedule
in terms of the imposed risk of hazardous medical waste. Experimental results confirm the
efficiency of our heuristic. We present a case study to illustrate solution attributes obtained by our
solution methodology. The case study is based on medical waste management in Dolj, Romania.
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Mahdi Takalloo, Changhyun Kwon (2020) Sensitivity of Wardrop Equilibria: Revisited. Optimization Letters, 14, 781–796.
doi arXiv
pdf Wardrop equilibria; Selfish routing; Sensitivity analysis abstract
For single-commodity networks, the increase of the price of anarchy is bounded by a factor of (1 + ε)p from
above, when the travel demand is increased by a factor of 1 + ε and the latency functions are polynomials
of degree at most p. We show that the same upper bound holds for multi-commodity networks and provide
a lower bound as well.
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Xufei Liu, Changhyun Kwon (2020) Exact Robust Solutions for the Combined Facility Location and Network Design Problem in Hazardous Materials Transportation. IISE Transactions, 52(10), 1156–1172. (Runner-up, Student Paper Competition
of the INFORMS Section on Location Analysis (SOLA), 2019) doi
pdf bi-level optimization; facility location; network design; cutting plane; Benders decomposition; hazardous materials abstract
We consider a leader-follower game in the form of a bi-level optimization problem that simultaneously
optimizes facility locations and network design in hazardous materials transportation. In the upper level,
the leader intends to reduce the facility setup cost and the hazmat exposure risk, by choosing facility
locations and road segments to close for hazmat transportation. When making such decisions, the leader
anticipates the response of the followers who want to minimize the transportation costs. Considering
uncertainty in the hazmat exposure and the hazmat transport demand, we consider a robust optimization
approach with multiplicative uncertain parameters and polyhedral uncertainty sets. The resulting problem
has a min-max problem in the upper level and a shortest-path problem in the lower level. We
devise an exact algorithm that combines a cutting plane algorithm with Benders decomposition.
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Mitchell J. Eaton, Simeon Yurek, Zulqarnain Haider, Julien Martin, Fred A. Johnson, Bradley J.
Udell, Hadi Charkhgard, Changhyun Kwon (2019) Spatial Conservation Planning under Uncertainty: Adapting to Climate Change Risks using Modern Portfolio Theory. Ecological Applications, 29(7):e01962.
doi Reserve design, spatial conservation planning, modern portfolio theory, multi-criteria decision analysis, risk management, sea-level rise, urbanization, climate uncertainty abstract
Climate change and urban growth impact habitats, species, and ecosystem services. To buffer against global
change, an established adaptation strategy is designing protected areas to increase representation and
complementarity of biodiversity features. Uncertainty regarding the scale and magnitude of landscape
change complicates reserve planning and exposes decision makers to risk of failing to meet
conservation goals. Conservation planning tends to treat risk as an absolute measure, ignoring
the context of the management problem and risk preferences of stakeholders. Application to
conservation of risk management theory emphasizes diversification of portfolio of assets, with the
goal of reducing the impact of system volatility on investment return. We use principles of
Modern Portfolio Theory (MPT), which quantifies risk as the variance and correlation among
assets, to formalize diversification as an explicit strategy for managing risk in climate-driven
reserve design. We extend MPT to specify a framework that evaluates multiple conservation
objectives, allows decision makers to balance management benefits and risk when preferences are
contested or unknown, and includes additional decision options such as parcel divestment when
evaluating candidate reserve designs. We apply an efficient search algorithm that optimizes portfolio
design for large conservation problems and a game theoretic approach to evaluate portfolio
tradeoffs that satisfy decision makers with divergent benefit and risk tolerances, or when a
single decision maker cannot resolve their own preferences. Evaluating several risk profiles for
a case study in South Carolina, our results suggest that a reserve design may be somewhat
robust to differences in risk attitude but that budgets will likely be important determinants of
conservation planning strategies, particularly when divestment is considered a viable alternative. We
identify a possible fiscal threshold where adequate resources allow protecting a sufficiently
diverse portfolio of habitats such that the risk of failing to achieve conservation objectives is
considerably lower. For a range of sea-level rise projections, conversion of habitat to open water
(14--180%) and wetland loss (1–7%) are unable to be compensated under the current protected
network. In contrast, optimal reserve design outcomes are predicted to ameliorate expected
losses relative to current and future habitat protected under the existing conservation estate.
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Vignesh Subramanian, Tapas K. Das, Changhyun Kwon, Abhijit Gosavi (2019) A Data-Driven Methodology for Dynamic Pricing and Demand Response in Electric Power Networks. Electric
Power Systems Research, 174, 105869. doi
pdf dynamic pricing; aggregated demand response; electric power network; Bayesian demand prediction abstract
The practice of disclosing price of electricity before consumption (dynamic pricing) is essential to
promote aggregator-based demand response in smart and connected communities. However, both
practitioners and researchers have expressed fear that wild fluctuations in demand response
resulting from dynamic pricing may adversely affect the stability of both the network and the
market. This paper presents a comprehensive methodology guided by a data-driven learning
model to develop stable and coordinated strategies for both dynamic pricing as well as demand
response. The methodology is designed to learn offline without interfering with network operations.
Application of the methodology is demonstrated using simulation results from a sample 5-bus
PJM network. Results show that it is possible to arrive at stable dynamic pricing and demand
response strategies that can reduce cost to the consumers as well as improve network load
balance.
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Kevin A. Melendez, Vignesh Subramanian, Tapas K. Das, Changhyun Kwon (2019) Empowering end-use consumers of electricity to aggregate for demand-side participation. Applied Energy,
248, 372–382. doi Demand-side participation; Aggregation of end-use consumers; Fairness; Peer-to-peer trading; Energy sharing using EVs; Optimization of power systems abstract
End-use consumers (peers) are being empowered to aggregate for direct demand-side participation through
load scheduling and energy sharing. This is the result of the growth of Internet of Things (IoT) enabled
loads, availability of advanced metering infrastructure, and the move towards real-time (RT) pricing of
electricity. Peer-to-peer (P2P) cooperation has received significant interest in recent years, though the focus
of this growing body of research is on modeling prosumer behavior in microgrids. Hence, there is a
need for new methodologies to examine empowerment of all end-use consumers (not limited to
prosumers) to form aggregations and develop fair rules of cooperation to reduce cost. This paper
offers an optimization based methodology to address the above need for power systems. It
minimizes the total cost and considers fairness using a Nash bargaining approach. Since cost and
fairness are often in conflict, trade-off strategies are also presented. The model to asses fairness is
nonlinear. Hence, it is transformed into a second order cone program (SOCP) and solved using
GUROBI software version 7.5.2. The methodology is implemented on a sample 5-bus network, built
using price and demand data from one of the load zones of Pennsylvania, New Jersey, and
Maryland (PJM) power network in the United States. It is shown that two aggregations of peers
participating in the sample network can reduce their total cost by 14.17% and 22.7%, while
maintaining fairness. Concluding remarks highlight some of the limitations of the methodology.
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Longsheng Sun, Mark H. Karwan, Changhyun Kwon (2019) Path-Based Approaches to Robust Network Design Problems Considering Boundedly Rational Network Users. Transportation Research Record, 2673(3),
637–645. doi pdf networks and graphs; satisficing; network design; hazardous materials; bi-level optimization
abstract
Network users may choose non-shortest paths, when (1) they satisfice with sub-optimal routes, or (2) they
have perception errors of the decision environment. The notion of generalized bounded rationality has been
recently proposed to create a unified framework for these two sources of behavioral uncertainty in route
choices. When the notion of generalized bounded rationality is used in robust network design problems, we
obtain a bi-level optimization problem with the min-max objective function at the upper level, with three
layers of optimization in total. In this paper, we derive equivalent single-level path-based formulations
that are readily solvable by available optimization libraries. We show how to incorporate them
into robust multi-commodity network design problems in hazardous materials transportation.
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Liu Su, Longsheng Sun, Mark H. Karwan, Changhyun Kwon (2019) Spectral Risk Measure Minimization in Hazardous Materials Transportation. IISE Transactions,
59(6), 638–652. (Featured in IISE Magazine) doi
pdf hazardous materials transportation; risk management; spectral risk; coherent risk measures abstract
Due to catastrophic consequences of potential accidents in hazardous materials (hazmat) transportation, a
risk-averse approach for routing is necessary. In this paper, we consider spectral risk measures, for
risk-averse hazmat routing, which overcome challenges posed in the existing approaches such as conditional
value-at-risk. In spectral risk measures, one can define the spectrum function precisely to reflect the
decision maker’s risk preference. We show that spectral risk measures can provide a unified routing
framework for popular existing hazmat routing methods based on expected risk, maximum risk, and
conditional value-at-risk. We first consider a special class of spectral risk measures, for which the spectrum
function is represented as a step function. We develop a mixed integer linear programming model
in hazmat routing to minimize these special spectral risk measures and propose an efficient
search algorithm to solve the problem. For general classes of spectral risk measures, we suggest
approximation methods and path-based approaches. We propose an optimization procedure to
approximate general spectrum functions using a step function. We illustrate the usage of spectral risk
measures and the proposed computational approaches using data from real road networks.
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Payman G. Saghand, Hadi Charkhgard, Changhyun Kwon (2019) A Branch-and-Bound Algorithm for a Class of Mixed Integer Linear Maximum Multiplicative Programs: A Multi-objective Optimization Approach. Computers & Operations Research, 101,
263–274. doi pdf
Multiplicative programming; Multi-objective optimization; Optimization over the efficient set; Linear programming; Branch-and-bound algorithm abstract
We present a linear programming based branch-and-bound algorithm for a class of mixed integer
optimization problems with a bi-linear objective function and linear constraints. This class of
optimization problems can be viewed as a special case of the problem of optimization over the set of
efficient solutions in multi-objective optimization. It is known that when there exists no integer
decision variable, such a problem can be solved in polynomial time. In fact, in such a case, the
problem can be transformed into a Second-Order Cone Program (SOCP) and so it can be solved
efficiently by a commercial solver such as CPLEX SOCP solver. However, in a recent study, it
is shown that such a problem can be solved even faster in practice by using a bi-objective
linear programming based algorithm. So, in this study, we embed that algorithm in an effective
branch-and-bound framework to solve mixed integer instances. We also develop several enhancement
techniques including preprocessing and cuts. An extensive computational study demonstrate that
the proposed branch-and-bound algorithm outperforms a commercial mixed integer SOCP
solver. Moreover, the effect of different branching and node selecting strategies is explored.
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Zulqarnain Haider, Alexander Nikolaev, Jee Eun Kang, Changhyun Kwon (2018) Inventory Rebalancing through Pricing in Public Bike Sharing Systems. European Journal
of Operational Research, 270(1), 103–117. doi
pdf transportation; bike-sharing; shared-mobility; rebalancing; pricing; heuristics abstract
This paper presents a new conceptual approach to improve the operational performance of public bike
sharing systems using pricing schemes. Its methodological developments are accompanied by
experimental analyses with bike demand data from Capital Bikeshare program of Washington, DC. An
optimized price vector determines the incentive levels that can persuade system customers to take
bicycles from, or park them at, neighboring stations so as to strategically minimize the number of
imbalanced stations. This strategy intentionally makes some imbalanced stations even more
imbalanced, creating hub stations. This reduces the need for trucks and dedicated staff to carry
out inventory repositioning. For smaller networks, a bi-level optimization model is introduced
to minimize the number of imbalanced stations optimally. The results are compared with a
heuristic approach that adjusts route prices by segregating the stations into different categories
based on their current inventory profile, projected future demand, and maximum and minimum
inventory values calculated to fulfill certain desired service level requirements. We use a routing
model for repositioning trucks to show that the proposed optimization model and the latter
heuristic approach, called the iterative price adjustment scheme (IPAS), reduce the overall
operating cost while partially or fully obviating the need for a manual repositioning operation.
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Anpeng Zhang, Jee Eun Kang, Kay Axhausen, Changhyun Kwon (2018) Multi-day Activity-Travel Pattern Sampling Based on Single-Day Data. Transportation Research
Part C: Emerging Technologies, 89, 96–112. doi
pdf Activity-Travel Patterns; Day-to-day variability; Interpersonal variability; Sampling Multiday Activity-Travel Patterns abstract
Although it is important to consider multi-day activities in transportation planning, multi-day
activity-travel data are expensive to acquire and therefore rarely available. In this study, we propose to
generate multi-day activity-travel data through sampling from readily available single-day household travel
survey data. A key observation we make is that the distribution of interpersonal variability in single-day
travel activity datasets is similar to the distribution of intrapersonal variability in multi-day. Thus,
interpersonal variability observed in cross-sectional single-day data of a group of people can be used to
generate the day-to-day intrapersonal variability. The proposed sampling method is based on activity-travel
pattern type clustering, travel distance and variability distribution to extract such information from
single-day data. Validation and stability tests of the proposed sampling methods are presented.
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Zulqarnain Haider, Hadi Charkhgard, Changhyun Kwon (2018) A Robust Optimization Approach for Solving Problems in Conservation Planning. Ecological Modelling, 368, 288–297.
doi pdf conservation planning; robust optimization; invasion control; reserve selection; bi-objective mixed integer linear programming
abstract
In conservation planning, the data related to size, growth and diffusion of populations is sparse, hard to
collect and unreliable at best. If and when the data is readily available, it is not of sufficient quantity to
construct a probability distribution. In such a scenario, applying deterministic or stochastic approaches to
the problems in conservation planning either ignores the uncertainty completely or assumes a distribution
that does not accurately describe the nature of uncertainty. To overcome these drawbacks, we propose a
robust optimization approach to problems in conservation planning that considers the uncertainty in data
without making any assumption about its probability distribution. We explore two of the basic
formulations in conservation planning related to reserve selection and invasive species control to
show the value of the proposed robust optimization. Several novel techniques are developed to
compare the results produced by the proposed robust optimization approach and the existing
deterministic approach. For the case when the robust optimization approach fails to find a feasible
solution, a novel bi-objective optimization technique is developed to handle infeasibility by
modifying the level of uncertainty. Some numerical experiments are conducted to demonstrate the
efficacy of our proposed approach in finding more applicable conservation planning strategies.
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Byung Do Chung, Sungjae Park, Changhyun Kwon (2018). Equitable Distribution of Recharging Stations for Electric Vehicles. Socio-Economic Planning Science, 63,
1–11. doi pdf electric vehicles; flow refueling location problem; demand equity; flow equity
abstract
Given the limited driving range of battery electric vehicles and lack of sufficient charging infrastructure,
locating charging stations is an important decision problem to enable long-distance travels by battery
electric vehicles. This paper considers an important political factor in such location problems: the equitable
access to charging stations among geographical regions. We propose three types of equity constraints to the
flow refueling location model: two constraints based on travel demand and the other based on flow. For
solving the problem with flow equity constraints, we propose a multi-phase heuristic method. We
test the proposed models and computational method in a real expressway network in Korea.
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Longsheng Sun, Mark H. Karwan, Changhyun Kwon (2018). Generalized Bounded Rationality and Robust Multicommodity Network Design. Operations Research, 66(1), 42–57.
(Outstanding Paper Award in Urban Transportation Planning and Modeling, the INFORMS Transportation Science & Logistics
(TSL) Society, 2019) doi pdf bounded rationality; satisficing; perception; network design; robust optimization; inverse optimization
abstract
Often network users are not perfectly rational, especially when they are satisficing—rather than
optimizing—decision makers and each individual’s perception of the decision environment reflects
personal preferences or perception errors due to lack of information. While the assumption of
satisficing drivers has been used in modeling route choice behavior, this research uses a link-based
perception error model to describe driver’s uncertain behavior, without assuming stochasticity. In
congestion-free networks, we show that the perception error model is more general than the
existing bounded rationality models with satisficing drivers with special cases when the two
approaches yield the same results; that is, satisficing under accurate perception is equivalent to
optimizing under inaccurate perception. This motivates us to define generalized bounded rationality
in route choice behavior modeling. The proposed modeling framework is general enough to
capture link-specific cost-perception of drivers. We use a Monte Carlo method to estimate
modeling parameter values to guarantee a certain coverage probability in comparison with
the random utility model. We demonstrate how the notion of generalized bounded rationality
can be used in robust multicommodity network design problems and devise a cutting plane
algorithm. We illustrate our approaches in the context of hazardous materials transportation.
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Tolou Esfandeh, Rajan Batta, Changhyun Kwon (2018). Time-Dependent Hazardous-materials Network Design Problem. Transportation Science, 52(2), 454–473.
doi pdf
github hazardous materials transportation; network design; column generation; label setting abstract
We extend the hazardous-materials (hazmat) network design problem to account for the time-dependent
road closure as a policy tool in order to reduce hazmat transport risk by altering carriers’ departure times
and route choices. We formulate the time-dependent network design problem using an alternative-based
model with each alternative representing a combined path and departure-time choice. We also present an
extended model that can not only account for consecutive time-based road closure policies, but also allow
stopping at the intermediate nodes of the network in the routing/scheduling decisions of the carriers.
Heuristic algorithms based on column-generation and label-setting are presented. To illustrate the
advantages that can be gained through the use of our methodology, we present results from numerical
experiments based on a transportation network from Buffalo, NY. To investigate the impact of the
extensions, we consider three versions of the problem by gradually refining the model. We show
that under consideration of extensions, the design policies are more applicable and effective.
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Iakovos Toumazis, Murat Kurt, Artemis Toumazi, Loukia G Karakosta, Changhyun Kwon
(2017). Comparative Effectiveness of Up-to-Three Lines of Chemotherapy Treatment Plans for Metastatic Colorectal Cancer. Medical Decision Making doi
pdf abstract
Modern chemotherapy agents transformed standard care for metastatic colorectal cancer (mCRC) but
raised concerns about the financial burden of the disease. We studied comparative effectiveness of
treatment plans that involve up to three lines of therapies and impact of treatment sequencing on health
and cost outcomes. We employed a Markov model to represent the dynamically changing health status of
mCRC patients and used Monte-Carlo simulation to evaluate various treatment plans consistent with
existing guidelines. We calibrated our model by a meta-analysis of published data from an extensive list of
clinical trials and measured the effectiveness of each plan in terms of cost per quality-adjusted
life-year (QALY). We examined the sensitivity of our model and results with respect to key
parameters in two scenarios serving as base- and worst-cases for patients’ overall and progression
free survivals. The derived efficient frontiers included 7 and 5 treatment plans in base- and
worst-cases, respectively. The incremental cost-effectiveness ratio (ICER) ranged between $26,260 and
$152,530 when the treatment plans on the efficient frontiers were compared against the least
costly efficient plan in base-case, and between $21,256 to $60,040 in worst-case. All efficient
plans were expected to lead to fewer than 2.5 AEs and on average successive AEs were spaced
more than 9 weeks apart from each other in base-case. Based on ICER, all efficient treatment
plans exhibit at least 87% chance of being efficient. Sensitivity analyses show that the ICERs
were most dependent on drug acquisition cost, distributions of progression free and overall
survivals, and health utilities. We conclude that improvements in health outcomes may come at
high incremental costs and are highly dependent in the order treatments are administered.
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Anpeng Zhang, Jee Eun Kang, Changhyun Kwon (2017). Incorporating Demand Dynamics in Multi-Period Capacitated Fast-charging Location Planning for Electric Vehicles. Transportation Research Part B: Methodological,
103, 5–29. doi pdf
github electric vehicles; facility location; flow refueling location problem; multi-period planning; vehicle market demand dynamics; alternative fuel vehicles abstract
We develop a multi-period capacitated flow refueling location problem for electric vehicles (EVs) as EV
market responds to the charging infrastructure. The optimization model will help us determine
the optimal location of chargers as well as the number of charging modules at each station
over multiple time periods. We define a number of demand dynamics, including flow demand
growth varying with charging opportunities on path as well as demand growing naturally with
less affect from charging infrastructure, with two objective functions (one maximizing flow
coverage and the other maximizing electric vehicle demand). A case study based on a road
network around Washington, D.C., New York City, and Boston is presented to provide numerical
experiments related to demand dynamics, showing the potential problems in multi-period planning.
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Md Tanveer Ahmed, Jun Zhuang, Changhyun Kwon (2017). Understanding Conflicting Interests of a Government and a Tobacco Manufacturer: A Game-Theoretic Approach. Group Decision and Negotiation, 26(6),
1209–1230. doi pdf
Farming; Subsidy; Food security; Rice; Tobacco; Nash Equilibrium abstract
Rice is the staple food of nearly half of the population of the world, most of whom live in developing
countries. Ensuring a domestic supply of rice from outside sources is difficult for developing countries as
less than 5% of the total world’s production is available for international trade. Hence, in order to ensure
domestic food security, e.g., food availability and access, governments provide subsidies in agriculture. In
many occasions, public money used for the subsidy goes toward promoting undesirable crops like tobacco.
Although the strategic interaction between governments and manufacturers is critical, it has not been
studied in the literature. This study fills this gap by considering a game between a government
(of a developing country) and a tobacco manufacturer in which the government decides on
a mix of subsidies and the tobacco manufacturer decides on declaring a purchasing price of
tobacco. We provide a numerical study to show that controlling the output harvest price is
more effective in reaching the desired end result for both the government and the tobacco
manufacturer. A subsidy in fertilizer results in the measurable increase in the government spending
but does not have significant effect in reaching the production target. The fertilizer subsidy
should be provided only when the output price is too high to be affordable for the population.
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Masoumeh Taslimi, Rajan Batta, Changhyun Kwon (2017). A Comprehensive Modeling Framework for Hazmat Network Design, Hazmat Response Team Location, and Equity of Risk. Computers & Operations Research, 79,
119–130. doi pdf Hazmat emergency response team; Bi-level network design; Greedy heuristic algorithm; Equity of risk; Robust solution
abstract
This paper considers a bi-level hazmat transportation network design problem in which hazmat shipments
have to be transported over a road network between specified origin-destination points. The bi-level
framework involves a regulatory authority and hazmat carriers. The control variables for the regulatory
authority are locations of hazmat response teams and which additional links to include for
hazmat travel. The regulatory authority (upper level) aims to minimize the maximum transport
risk incurred by a transportation zone, which is related to risk equity. Our measure of risk
incorporates the average response time to the hazmat incidents. Hazmat carriers (lower level) seek to
minimize their travel cost. Using optimality conditions, we reformulate the non-linear bi-level
model into a single-level mixed integer linear program, which is computationally solvable for
medium size problems using a commercial solver. For large size problems, we propose a greedy
heuristic approach, which we empirically demonstrate to find good solutions with reasonable
computational effort. We also seek a robust solution to capture stochastic characteristics of the model.
Experimental results are based on popular test networks from the Sioux Falls and Albany areas.
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Xiaoping Li, Rajan Batta, Changhyun Kwon (2017). Effective and Equitable Supply of Gasoline to Impacted Areas in the Aftermath of a Natural Disaster. Socio-Economic Planning Sciences, 57, 25–34.
doi pdf humanitarian logistics, disaster operations management, location, allocation
abstract
The focus of this research is on supplying gasoline after a natural disaster. There are two aspects for this
work: determination of which gas stations should be provided with generators (among those that do not
have electric power) and determination of a delivery scheme that accounts for increased demand due to lack
of public transportation and considerations such as equity. We develop an MIP for this situation. Two
case studies based on Hurricane Sandy in New Jersey are developed and solved in CPLEX.
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Sung Hoon Chung, Changhyun Kwon (2016). Integrated Supply Chain Management for Perishable Products: Dynamics and Oligopolistic Competition Perspectives with Application to Pharmaceuticals. International Journal of Production Economics, 179,
117–129. doi pdf pharmaceutical supply chain, perishable inventory dynamics, oligopolistic competition, variational inequality, interior point methods
abstract
We propose an integrated supply chain management framework that allows us to explicitly consider the
impact of product perishability on a broad scale that includes manufacturers, distribution centers,
wholesalers, and demand markets. The framework proposed herein also makes it possible to consider the
oligopolistic competition across wholesalers that drives price and demand fluctuations. Furthermore, the
supply chain decision rules are derived from necessary conditions in the framework. The inclusion of such
salient features allows the framework to generate outcomes that suggest realistic managerial
insights. We provide a numerical example in which two multi-national pharmaceutical firms
producing a homogeneous medicinal drug and four oligopolistic wholesalers are considered.
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Longsheng Sun, Mark H. Karwan, Changhyun Kwon (2016). Robust Hazmat Network Design Problems Considering Risk Uncertainty. Transportation Science, 50(4),
1188–1203. doi pdf hazardous materials transportation; network design; robust optimization
abstract
We study robust network design problems for hazardous materials transportation considering risk
uncertainty. Risk uncertainty is considered in two ways: (1) uncertainty on each link across all shipments,
and (2) uncertainty on each link for each shipment. We extend an existing heuristic framework to solve
these two robust network design problems and propose a Lagrangian relaxation heuristic to solve
subproblems within the framework. We present our computational experiences and illustrate general
insights based on real networks.
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Iakovos Toumazis, Changhyun Kwon (2016). Worst-case Conditional Value-at-Risk Minimization for Hazardous Materials Transportation. Transportation Science, 50(4), 1174–1187.
doi pdf
github hazardous materials transportation; conditional value-at-risk; robust optimization abstract
Despite significant advances in risk management, routing hazardous materials (hazmat) has
relied on relatively simpler methods. In this paper, we formally introduce an advanced risk
measure, called conditional value-at-risk (CVaR), applied to truck routing problems for hazmat
transportation. We find that CVaR offers a flexible, risk-averse, and computationally tractable
routing method that is adequate to mitigate hazmat accidents. We further extend CVaR to
consider the worst-case CVaR (WCVaR) under data uncertainty. The two important data types in
hazmat transportation are accident probabilities and accident consequences, both of which
are subject to many ambiguous factors. In addition, historical data are usually insufficient to
construct probability distribution of accident probabilities and consequences. This motivates
a new robust optimization approach to consider and compute WCVaR. Important axioms
are studied for both CVaR and WCVaR risk measures to be coherent and appropriate in the
context of hazmat transportation, and computational methods are proposed. We demonstrate
the proposed notions of CVaR and WCVaR through a case study in a realistic road network.
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Anshuman Anjani Kumar, Jee Eun Kang, Changhyun Kwon, Alexander Nikolaev (2016). Inferring Origin-Destination Pairs and Utility-Based Travel Preferences for Shared Mobility Systems Users in a Multi-Modal Environment. Transportation
Research Part B: Methodological, 91, 270–291. doi
pdf Origin-Destination estimation, Traveler preferences, Expectation Maximization, Probabilistic inference, Multimodal route choice, Bike Sharing Systems, Shared Mobility Systems abstract
This paper presents a methodological framework to identify population-wide traveler type distribution and
simultaneously infer individual travelers’ Origin-Destination (OD) pairs, based on the individual records of
a shared mobility (bike) system use in a multimodal travel environment. Given the information about the
travelers’ outbound and inbound bike stations under varied price settings, the developed Selective Set
Expectation Maximization (SSEM) algorithm infers an underlying distribution of travelers over the given
traveler “types” or “classes” treating each traveler’s OD pair as a latent variable; the inferred most likely
traveler type for each traveler then informs their most likely OD pair. The experimental results based on
simulated data demonstrate high SSEM learning accuracy both on the aggregate and disaggregate levels.
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Longsheng Sun, Mark H. Karwan, Changhyun Kwon (2016). Implications of Cost Equity Consideration in Hazmat Network Design. Transportation Research Record,
2567(1), 67–77. doi pdf
abstract
The hazmat network design problem (HNDP) aims to reduce the risk of transporting hazmat in the
network by enforcing regulation policies. The goal of reducing risk can increase cost for different
hazmat carriers. Since HNDP involves multiple parties, it is essential to take the cost increase
of all carriers into consideration for the implementation of the regulation policy. While we
can consider cost by placing upper bounds on the total increase, the actual cost increase for
various OD pairs can differ, which results in unfairness among carriers. Thus we propose to
consider the cost equity issue as well in HNDP. Additionally, due to the existence of multiple
solutions in current HNDP models and the possibility of unnecessarily closing road segments, we
introduce a new objective considering the length of all the closed links. Our computational
experience is based on a real network and we show results under different cost consideration cases.
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Tolou Esfandeh, Changhyun Kwon, Rajan Batta (2016). Regulating Hazardous Materials Transportation by Dual Toll Pricing. Transportation Research
Part B: Methodological, 83, 20–35. doi
pdf hazardous material transportation; toll setting; non-convex optimization; bi-level programming abstract
We investigate dual-toll setting as a policy tool to mitigate the risk of hazardous material (hazmat)
shipment in road networks. We formulate the dual-toll problem as a bi-level program wherein the upper
level aims at minimizing the risk, and the lower level explores the user equilibrium decision of the regular
vehicles and hazmat carriers given the toll. When the upper level objective is to minimize the risk and all
links are tollable, we decompose the formulation into first-stage and second-stage, and suggest a
computational method to solve each stage. Our two-stage solution methodology guarantees nonnegative
valid dual tolls regardless of the solution accuracy of the first-stage problem. We also consider a general
dual-toll setting problem where the regulator rather wishes to minimize a combination of risk and the paid
tolls and/or some links are untollable. To solve this truly bilevel problem, we provide heuristic
algorithms that decompose the problem into subproblems each being solved by a line search.
Case studies based on the Sioux Falls network illustrate the insights on the dual-toll policies.
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Longsheng Sun, Mark H. Karwan, Changhyun Kwon (2016). Incorporating Driver Behaviors in Network Design Problems: Challenges and Opportunities. Transport Reviews, 36(4), 454–478.
doi pdf network design; behavior route choice; random utility; random regret; bounded rationality; cumulative prospect theory; fuzzy logic; dynamic learning; SILK theory
abstract
The goal of network design problem (NDP) is to make optimal decisions to achieve a certain objective such
as minimizing total travel time or maximizing tolls collected in the network. A critical component to
NDP is how travelers make their route choices. Researchers in transportation have adopted
human decision theories to describe more accurate route choice behaviors. In this paper, we
review the NDP with various route choice models: the random utility model (RUM), Random
Regret-Minimization (RRM) model, bounded rationality (BR), cumulative prospect theory
(CPT), the fuzzy logic model (FLM) and dynamic learning models (DLM). Moreover, we identify
challenges in applying behavioral route choice models to NDP and opportunities for future research.
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Ha Hwang, JiYoung Park, Changhyun Kwon, Kathryn Friedman, Nathan Attard, Shen Hao Chang,
Samuel Wells (2015). The Ties that Bind: Economic and Freight Transportation Implications of U.S.-Canada Border Bridges Using a Bi-national Transportation Network-Combined Economic Model. Research in Transportation Business & Management, 16, 32–49.
doi pdf Cross-border freight; trade network analysis; border wait time; Bi-national TransNIEMO
abstract
This study combines US-Canada bi-national highway network data with a freight flow dataset using ports
of entry (POE) via highway border crossings. Through several sub-procedures, the US and Canada highway
systems are integrated into a single network dataset. In addition, border wait time dataset was monitored
and analyzed to set the border delay baseline. This dataset enables us to explore the freight traffic pattern
between the US and Canada. Weighted Eigenvector Score is computed using a Social Network Analysis
tool. The results demonstrate that major regional bodies are the primary users of major POE between
the US and Canada. This study not only offers an improved understanding of the economic
implications of US-Canada border crossings, but also contributes to developing a simulation
tool, a bi-national Transportation-combined National Interstate Economic Model. Such a tool
is expected to extend and apply to other contexts, such as transportation and national and
bi-national security, among other applications. Additionally, this study suggests several important
considerations for US and Canadian officials charged with devising policy to protect against
security threats while facilitating legitimate flows of goods, services and people across the border.
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Vijay Ganesh Hariharan, Debabrata Talukdar, Changhyun Kwon (2015). Optimal Targeting of Advertisement for New Products with Multiple Consumer Segments. International Journal of
Research in Marketing, 32(3), 263–271. doi
pdf ssrn new product diffusion; advertisement; targeting; social contagion; dynamic optimization
abstract
Armed with improved targeting technology, firms are increasingly interested to optimize their
advertising dollars through consumer segment-specific targeting, particularly while introducing new
products. That task becomes especially important in markets with distinct consumer segments –
the early market and the main market – that affect each other’s adoption behavior. In this
study, in contrast to prior normative studies that assume a single-segment market structure, we
derive dynamic optimal advertising and segment-specific targeting strategies for firms facing a
two-segment market structure. We allow for mutual demand interactions between the two segments,
and for the diffusion parameters, advertising sensitivity, and cost of targeting to differ across
the segments. We model the effect of advertising as a logarithmic function that accounts for
diminishing marginal returns. Among our key findings: From profit optimization perspective, our
two-segment model outperforms the single-segment model under multiple diffusion dynamics
contexts – especially for the ‘bimodal chasm’ and the ‘early dip followed by bell-shaped’ type
diffusion patterns – even when the cost of targeting the early market is relatively high. Our
numerical analyses indicate that the optimal share of advertisement targeted to the early market
segment at launch needs to be much higher than the share of the early market segment in the
population. Advertising sensitivity, relative cost of targeting the early market, and the proportion
of early market consumers in the population have the greatest effects on the optimal time
to transition the targeted advertising spending from the early to the main market segment.
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Sung Hoon Chung, Changhyun Kwon (2015). Multi-Period Planning for Electric-Car Charging Station Locations: a Case of Korean Expressways. European Journal of Operational Research, 242(2),
677–687. doi pdf
github flow-refueling location; electric vehicles; multi-period planning; Korean Expressways abstract
One of the most critical barriers to widespread adoption of electric cars is the lack of charging station
infrastructure. Although it is expected that a sufficient number of charging stations will be constructed
eventually, due to various practical reasons they may have to be introduced gradually over time. In this
paper, we formulate a multi-period optimization model based on a flow-refueling location model for
strategic charging station location planning. We also propose two myopic methods and develop a case study
based on the real traffic flow data of the Korean Expressway network in 2011. We discuss the performance
of the three proposed methods.
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Taehan Lee, Changhyun Kwon (2014). A Short Note on the Robust Combinatorial Optimization Problems with Cardinality Constrained Uncertainty. 4OR, 12(4), 373–378. doi
pdf github robust combinatorial optimization; discrete optimization
abstract
Robust combinatorial optimization problems with cardinality constrained uncertainty may be solved by a
finite number of nominal problems. In this paper, we show that the number of nominal problems to be
solved can be reduced significantly.
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JiYoung Park, Changhyun Kwon, Minsu Son (2014). Economic Implications of the Canada-U.S. Border Bridges: Applying a Binational Economic Model for Canada and the U.S.. Research in Transportation
Business and Management, 11, 123–133. doi
pdf Border bridges; congestion; freight transportation; economic costs abstract
This study provides an approach to measure the economic costs stemming from delays on the bridges
connecting the U.S. and Canada. We selected the busiest bridges in the U.S. and Canada that connects the
Buffalo-Niagara Metropolitan region and the Ontario province. Separated by the Great Lakes and
waterways, Ontario has a significant portion of its trade activities with the U.S. by way of freight
transportation crossing border bridges connecting the two countries. Using binational economic models, we
found that the economic implications of the Canada-U.S. border bridges are in the range of
120,000to400,000 per day in total. Furthermore, the binational economic models we developed have
provided which industries are most impacted from the freight delays on the bridges based on
diverse scenarios. Our modeling approach and scenario development process provide diverse
simulation tests with the changes of freight transportation costs and patterns for key sectors.
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Yingying Kang, Rajan Batta, Changhyun Kwon (2014). Value-at-Risk Model for Hazardous Material Transportation. Annals of Operations Research, 222(1),
361–387. doi pdf
github hazardous materials transportation; value-at-risk; social risk mitigation abstract
This paper introduces a Value-at-Risk (VaR) model to support route choices in hazmat transportation
under a specified risk confidence level. It establishes several properties of the model and proposes an exact
solution procedure for single trips. Through a case study in the Albany, NY region, different routes
are generated depending on the confidence level, highlighting how risk tolerance shapes route
selection.
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Paul G. Berglund, Changhyun Kwon (2014). Solving a Location Problem of a Stackelberg Firm Competing with Cournot-Nash Firms. Networks and Spatial Economics, 14(1), 117–132.
doi pdf Location Analysis; Stackelberg-Cournot-Nash Equilibrium; Game Theory; Variational Inequality; Simulated Annealing
abstract
We study a discrete facility location problem on a network, where the locating firm acts as the leader and
other competitors as the followers in a Stackelberg-Cournot-Nash game. To maximize expected profits the
locating firm must solve a mixed-integer problem with equilibrium constraints. Finding an optimal solution
is hard for large problems, and full-enumeration approaches have been proposed in the literature for similar
problem instances.
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Yingying Kang, Rajan Batta, Changhyun Kwon (2014). Generalized Route Planning Model for Hazardous Material Transportation with VaR and Equity Considerations. Computers & Operations Research, 43,
237–247. doi pdf
github Value-at-Risk; multi-trip hazmat transportation; social risk mitigation; risk equity; dissimilar path abstract
Recently, the Value-at-Risk (VaR) framework was introduced for the routing problem of a single hazmat
trip. In this paper, we extend the VaR framework in two important ways. First, we show how to apply the
VaR concept to a more realistic multi-trip multi-hazmat type framework, which determines routes that
minimize the global VaR value while satisfying equity constraints. Second, we show how to embed the
algorithm for the single hazmat trip problem into a Lagrangian relaxation framework to obtain an efficient
solution method for this general case. We test our computational experience based on a real-life hazmat
routing scenario in the Albany district of New York State. Our results indicate that one can achieve a high
degree of risk dispersion while controlling the VaR value within the desired confidence level.
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Paul G. Berglund, Changhyun Kwon (2014). Robust Facility Location Problem for Hazardous Waste Transportation. Networks and Spatial Economics, 14(1), 91–116.
doi pdf Location problem; Hazardous waste facility; Robust optimization; Genetic algorithm
abstract
We consider a robust facility location problem for hazardous materials (hazmat) transportation considering
routing decisions of hazmat carriers. Given a network and a known set of nodes from which hazmat
originate, we compute the locations of hazmat processing sites (e.g. incinerators) which will
minimize total cost, in terms of fixed facility cost, transportation cost, and exposure risk. We
assume that hazmat will be taken to the closest existing processing site. We present an exact full
enumeration method, which is useful for small or medium-size problems. For larger problems, the use
of a genetic algorithm is explored. Through numerical experiments, we discuss the impact
of uncertainty and robust optimization in the hazmat combined location-routing problem.
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Md Tanveer Ahmed, Changhyun Kwon (2014). Optimal Contract-Sizing in Online Display Advertising for Publishers with Regret Considerations. Omega, 42(1), 201–212. doi
pdf Newsboy problem; Operations management; Risk abstract
In this paper, we study optimal contract problems for online display advertisements with pay-per-view
pricing schemes. We first provide and analyze a single-contract model equivalent to the newsvendor
problem. We then consider a stochastic optimization with two different advertisements and show how regret
considerations of a risk-averse publisher can lead to different optimal contract-sizing strategies. Numerical
experiments illustrate changes in pricing and contract allocation based on publisher risk preferences.
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Iakovos Toumazis, Changhyun Kwon (2013). Routing Hazardous Materials on Time-Dependent Networks using Conditional Value-at-Risk. Transportation Research Part C: Emerging Technologies,
37, 73–92. doi pdf
github dynamic shortest path; time-dependent network; conditional value-at-risk; hazardous materials transportation abstract
We propose a new method for mitigating risk in routing hazardous materials (hazmat), based on the
conditional value-at-risk (CVaR) measure on time-dependent vehicular networks. The CVaR models are
shown to be flexible and general routing models for hazmat transportation, and can be solved efficiently.
This paper extends the previous research by considering CVaR for hazmat transportation in the case where
accident probabilities and accident consequences are time-dependent. We provide a numerical method to
determine an optimal departure time and an optimal route for a given origin-destination pair. The
proposed algorithm is tested in a realistic road network in Buffalo, NY, USA and the results are
discussed.
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Changhyun Kwon, Taehan Lee, Paul G. Berglund (2013). Robust Shortest Path Problems with Two Uncertain Multiplicative Cost Coefficients. Naval Research Logistics, 60(5),
375–394. doi pdf
github robust shortest path; budgeted uncertainty; hazardous materials transportation abstract
We consider a robust shortest path problem when the cost coefficient is the product of two uncertain
factors. We first show that the robust problem can be solved in polynomial time by a dual variable
enumeration with shortest path problems as subproblems. We also propose a path enumeration approach
using a K-shortest paths finding algorithm that may be efficient in many real cases. An application in
hazardous materials transportation is discussed and the solution methods are illustrated by numerical
examples.
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Md Tanveer Ahmed, Changhyun Kwon (2012). Pricing Game of Online Display Advertisement Publishers. European Journal of Operational Research, 219,
477–487. doi pdf online display advertising; optimal pricing; Nash equilibrium; newsvendor problem
abstract
We consider an online display advertisement publisher who maximizes the revenue by optimal pricing in an
oligopoly setting. Each publisher interacts with others though setting cost-perimpression (CPM) that
affects the demand for everyone. Using the pseudoconcavity of the objective function, we study the best
response of the publisher while her strategy space changes. We also consider the sensitivity of the publisher
while other publishers changes their CPM. In both cases, the best response of the publisher depends
entirely on her current best response CPM. We provide an algorithm for finding the equilibrium and
illustrate by numerical examples.
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Anand Srinivasan, Changhyun Kwon (2012). Operations of Online Advertising Services and Publisher's Option. Journal of the Operational Research Society, 63,
674–682. doi pdf online advertising; Nash bargaining game; option contract
abstract
We analyse the use of options for online advertisement publishers. By providing a discount
or rewards to advertisers, publishers can utilize their uncertain service capacity, page-views,
more efficiently. We use Generalized Nash Bargaining to study the feasibility of the option
contract and solve for an optimal value for the option price. We compare the revenues and
benefits from advertisements under the option contract, with those without the options using
numerical studies. We also study the impact of pricing and other components in the game
on the optimal option price, the publisher’s revenues, and the advertiser’s benefits from the
advertisements.
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Byung Do Chung, Jiahan Li, Tao Yao, Changhyun Kwon, Terry L. Friesz (2012). Demand Learning and Dynamic Pricing under Competition in a State-Space Framework. IEEE Transactions
on Engineering Management, 59(2), 240–249. doi
pdf Competition, demand learning, differential variational inequality, dynamic pricing, Markov chain Monte Carlo, nonlinear time series abstract
In this paper, we propose a revenue optimization framework integrating demand learning and dynamic
pricing for firms in monopoly or oligopoly markets. We introduce a state-space model for this revenue
management problem, which incorporates game-theoretic demand dynamics and nonparametric techniques
for estimating the evolution of underlying state variables. Under this framework, stringent model
assumptions are removed. We develop a new demand learning algorithm using Markov chain Monte Carlo
methods to estimate model parameters, unobserved state variables, and functional coefficients in the
nonparametric part. Based on these estimates, future price sensitivities can be predicted, and the optimal
pricing policy for the next planning period is obtained. To test the performance of demand learning
strategies, we solve a monopoly firm’s revenue maximizing problem in simulation studies. We then
extend this paradigm to dynamic competition, where the problem is formulated as a differential
variational inequality. Numerical examples show that our demand learning algorithm is efficient and
robust.
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Jiashan Wang, Yingying Kang, Changhyun Kwon, Rajan Batta (2012). Dual Toll Pricing for Hazardous Material Transport with Linear Delay. Networks and Spatial Economics,
12(1), 147–165. doi pdf hazardous materials; toll pricing; congestion; risk
abstract
In this paper, we propose a dual toll pricing method to mitigate risk of hazardous materials (hazmat)
transportation. We aim to simultaneously control both regular and hazmat vehicles to reduce the risk. In
our model, we incorporate a new risk measure to consider duration-population-frequency of hazmat
exposure. We first formulate the model as a Mathematical Program with Equilibrium Constraints (MPEC).
Then we decompose the MPEC formulation into first-stage and second-stage problems. Separate methods
are developed to solve each stage. A numerical example is provided and possible extensions are
discussed.
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Taewoo Jung, Changhyun Kwon (2011). Retailer-Supplier Matching: an Application of the Deferred Acceptance Algorithm. International Journal of Services Operations and Informatics,
6(3), 248–258. doi pdf
abstract
In this paper, we apply matching theory to supply chain coordination. We present mathematical
optimization models similar to the newsvendor problem to provide appropriate conditions for
retailer-supplier matching. In particular, our matching algorithm, compared to the general matching theory,
has uniquely been affected by contract sizes and ordering sequences. We also study that our matching
application guarantees stable and optimal outcomes. Numerical examples with various parameter settings
are provided to test the feasibility of the matching algorithms. We find that we can avoid the worst
matching case when we use the proposed matching algorithms.
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Terry L. Friesz, Taeil Kim, Changhyun Kwon, Matthew A. Rigdon (2011). Approximate Network Loading and Dual Time Scale Dynamic User Equilibrium. Transportation
Research Part B: Methodological, 45(1), 176–207. doi
pdf dynamic user equilibrium; differential variational inequalities; differential algebraic equations; dual-time-scale; fixed-point algorithm in Hilbert space abstract
In this paper we present a dual-time-scale formulation of dynamic user equilibrium (DUE) with demand
evolution. Our formulation belongs to the problem class that Pang and Stewart (2008) refer to as
differential variational inequalities. It combines the within-day time scale for which route and departure
time choices fluctuate in continuous time with the day-to-day time scale for which demand evolves in
discrete time steps. Our formulation is consistent with the often told story that drivers adjust their travel
demands at the end of every day based on their congestion experience during one or more previous days.
We show that analysis of the within-day assignment model is tremendously simplified by expressing
dynamic user equilibrium as a differential variational inequality. We also show there is a class of
day-to-day demand growth models that allow the dual-time-scale formulation to be decomposed by
time-stepping to yield a sequence of continuous time, single-day, dynamic user equilibrium
problems. To solve the single-day DUE problems arising during time-stepping, it is necessary to
repeatedly solve a dynamic network loading problem. We observe that the network loading phase of
DUE computation generally constitutes a differential algebraic equation (DAE) system, and we
show that the DAE system for network loading based on the link delay model (LDM) of Friesz
et al. (1993) may be approximated by a system of ordinary differential equations (ODEs).
That system of ODEs, as we demonstrate, may be efficiently solved using traditional numerical
methods for such problems. To compute an actual dynamic user equilibrium, we introduce a
continuous time fixed-point algorithm and prove its convergence for effective path delay operators
that allow a limited type of nonmonotone path delay. We show that our DUE algorithm is
compatible with network loading based on the LDM and the cell transmission model (CTM) due
to Daganzo (1995). We provide a numerical example based on the much studied Sioux Falls
network.
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Yongma Moon, Changhyun Kwon (2011). Online Advertisement Service Pricing and an Option Contract. Electronic Commerce Research and Applications, 10(1),
38–48. doi pdf online advertisements, option contract, Nash bargaining, click-through rate, utility maximization
abstract
For the Internet advertisement market, we consider a contract problem between advertisers and publishers.
Among several ways of pricing online advertisements, the methods based on cost-per-impression (CPM)
and cost-per-click (CPC) are the two most popular. The CPC fee is proportional to the click-through rate
(CTR), which is uncertain and makes decisions of advertisers and publishers difficult. In this paper, we
suggest a hybrid pricing scheme: advertisers pay the minimum of CPM and CPC fees by purchasing an
option from publishers. To determine the option price, we consider a Nash bargaining game for
negotiation between an advertiser and a publisher and provide the solution. Further, we show that
such option contracts will help the advertiser avoid high cost and the publisher generate more
revenue. The option contract will also improve the contract feasibility, compared to CPM and
CPC.
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Changhyun Kwon (2011). Single-Period Balancing of Pay-Per-Click and Pay-Per-View Online Display Advertisements. Journal of Revenue and Pricing Management, 10(3), 261–270.
doi pdf online advertising; display advertisements; cost-per-impression; cost-per-click; click-through-rate; web publisher
abstract
In this article, we study a balancing problem of web publishers for pay-per-view and pay-per-click contracts
for online display advertising. Considering the details of contracts, we refine prior research results on
the recommendation of optimal strategies. We examine the problem by formalizing a simple
stochastic optimization problem for a single period of advertising contracts. We investigate how
pricing and other contract components will affect the optimal display strategies analytically and
numerically.
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Changhyun Kwon, Terry L. Friesz, Reetabrata Mookherjee, Tao Yao, Baichun Feng (2009). Non-cooperative Competition Among Revenue Maximizing Service Providers with Demand Learning. European
Journal of Operational Research, 197(3), 981–996. doi
pdf Revenue management, Pricing, Demand learning, Differential games, Kalman filters abstract
This paper recognizes that in many decision environments in which revenue optimization is attempted, an
actual demand curve and its parameters are generally unobservable. Herein, we describe the dynamics of
demand as a continuous time differential equation based on an evolutionary game theory perspective. We
then observe realized sales data to obtain estimates of parameters that govern the evolution of demand;
these are refined on a discrete time scale. The resulting model takes the form of a differential
variational inequality. We present an algorithm based on a gap function for the differential
variational inequality and report its numerical performance for an example revenue optimization
problem.
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Changhyun Kwon, Terry L. Friesz (2008). Valuation of American Options by the Gradient Projection Method. Applied Mathematics and Computation, 206(1), 380–388.
doi pdf American options, variational inequalities, gradient projection
abstract
We study an equivalent optimization problem with an inequality constraint and boundary conditions,
whose necessary condition for optimality is the variational inequality presentation of American options. To
solve the problem, we use the gradient projection method, with discretizations both in time and
space. We tested the algorithm and compared with the projective successive over-relaxation
method.
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Terry L. Friesz, Changhyun Kwon (2008). Supply Chain Design in Perfect Competition. International Journal of Services Operations
and Informatics, 3(3/4), 340–356. doi
pdf abstract
In this paper, we apply the theory of optimal control and theory of traffic assignment for supply
chain design in perfect competition. We model the time staging and generalised routing of
input factors needed for production by a firm. The production process will typically involve
several stages, and as such is described by paths through a production network whose nodes are
the various stages of production. We develop an algorithm and test it for a small numerical
example.
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Terry L. Friesz, Changhyun Kwon, Reetabrata Mookherjee (2007). A Computable Theory of Dynamic Congestion Pricing. In: Transportation and
Traffic Theory 2007: Papers selected for presentation at ISTTT17, a peer reviewed
series since 1959, R. E. Allsop, M. G. H. Bell and B. G. Heydecker (Eds.), pp. 1-26.
pdf abstract
In this paper we present a theory of dynamic congestion pricing for the day-to-day as well as the
within-day time scales. The equilibrium design problem emphasized herein takes the form of an MPEC,
which we call the Dynamic Optimal Toll Problem with Equilibrium Constraints, or DOTPEC. The
DOPTEC formulation we employ recalls an important earlier result that allows the equilibrium design
problem to be stated as a single level problem, a result which is surprisingly little known. The
DOPTEC maintains the usual design objective of minimizing the system travel cost by appropriate
toll pricing. We describe how an infinite dimensional mathematical programming perspective
may be employed to create an algorithm for the DOTPEC. A numerical example is provided.
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Tan C. Miller, Terry L. Friesz, Roger L. Tobin, Changhyun Kwon (2007). Reaction Function Based Dynamic Location Modeling in Stackelberg-Nash-Cournot Competition. Networks and Spatial Economics,
7(1), 77–97. doi pdf Dynamic Stackelberg equilibrium location modeling, reaction functions
abstract
We formulate a dynamic facility location model for a firm locating on a discrete network. It is assumed
that this locating firm will act as the leader firm in an industry characterized by Stackelberg
leader-follower competition. The firm’s I competitors are assumed to act as Cournot firms and are
each assumed to operate under the assumption of zero conjectural variation with respect to
their I-1 Cournot competitors. Using sensitivity analysis of variational inequalities within a
hierachical mathematical programming approach, we develop reaction function based dynamic
models to optimize the Stackelberg firm’s location decision. In the second half of this paper,
we use these models to illustrate through a numerical example the insights yielded by our
approach.
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Jiwoo Son, Zhikai Zhao, Federico Berto, Chuanbo Hua, Zhiguang Cao, Changhyun Kwon, Jinkyoo Park. RRNCO: Towards Real-World Routing with Neural Combinatorial Optimization
The Fourteenth International Conference on Learning Representations, ICLR 2026
url abstract
The practical deployment of Neural Combinatorial Optimization (NCO) for Vehicle Routing Problems
(VRPs) is hindered by a critical sim-to-real gap. This gap stems not only from training on oversimplified
Euclidean data but also from node-based architectures incapable of handling the node-and-edge-based
features with correlated asymmetric cost matrices, such as those for real-world distance and duration. We
introduce RRNCO, a novel architecture specifically designed to address these complexities. RRNCO’s
novelty lies in two key innovations. First, its Adaptive Node Embedding (ANE) efficiently fuses spatial
coordinates with real-world distance features using a learned contextual gating mechanism. Second, its
Neural Adaptive Bias (NAB) is the first mechanism to jointly model asymmetric distance, duration, and
directional angles, enabling it to capture complex, realistic routing constraints. Moreover, we
introduce a new VRP benchmark grounded in real-world data crucial for bridging this sim-to-real
gap, featuring asymmetric distance and duration matrices from 100 diverse cities, enabling
the training and validation of NCO solvers on tasks that are more representative of practical
settings. Experiments demonstrate that RRNCO achieves state-of-the-art performance on this
benchmark, significantly advancing the practical applicability of neural solvers for real-world logistics.
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Chuanbo Hua, Federico Berto, Zhikai Zhao, Jiwoo Son, Changhyun Kwon, Jinkyoo Park. USPR: Learning a Unified Solver for Profiled Routing.
Proceedings of the AAAI Conference on Artificial Intelligence, 40, AAAI 2026.
arXiv abstract
The Profiled Vehicle Routing Problem (PVRP) extends the classical VRP by incorporating
vehicle-client-specific preferences and constraints, reflecting real-world requirements such as zone
restrictions and service-level preferences. While recent reinforcement-learning solvers have shown promising
performance, they require retraining for each new profile distribution, suffer from poor representation
ability, and struggle to generalize to out-of-distribution instances. In this paper, we address these
limitations by introducing Unified Solver for Profiled Routing (USPR), a novel framework that natively
handles arbitrary profile types. USPR introduces on three key innovations: (i) Profile Embeddings (PE) to
encode any combination of profile types; (ii) Multi-Head Profiled Attention (MHPA), an attention
mechanism that models rich interactions between vehicles and clients; (iii) Profile-aware Score
Reshaping (PSR), which dynamically adjusts decoder logits using profile scores to improve
generalization. Empirical results on diverse PVRP benchmarks demonstrate that USPR achieves
state-of-the-art results among learning-based methods while offering significant gains in flexibility and
computational efficiency. We make our source code publicly available to foster future research.
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Sohyun Jeong, Changhyun Kwon, Hyun-Jung Kim. Self-Supervised Job Grouping for Parallel Machine Scheduling with Family Setups Proceedings of the 11th IFAC
Conference on Manufacturing Modelling, Management and Control MIM 2025.
doi abstract
This study addresses the parallel machine scheduling problem with family setups in large-scale
manufacturing, motivated by challenges in the air conditioner assembly process, aiming to minimize total
tardiness and setup costs. The proposed framework integrates self-supervised learning for job grouping and
incorporates tardiness evaluator for iterative refinement. Experimental evaluations on datasets inspired by
real-world scenarios demonstrate that the proposed framework effectively reduces total tardiness and
setup costs compared to baseline methods. These results highlight the framework’s scalability,
computational efficiency, and potential as a practical solution to real-world scheduling challenges.
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Federico Berto, Chuanbo Hua, Laurin Luttmann, Jiwoo Son, Junyoung Park, Kyuree Ahn, Changhyun
Kwon, Lin Xie, Jinkyoo Park. PARCO: Learning parallel autoregressive policies for efficient multi-agent combinatorial optimization. Advances in Neural Information Processing Systems 39:
Annual Conference on Neural Information Processing Systems 2025, NeurIPS 2025.
arXiv github abstract
Multi-agent combinatorial optimization problems such as routing and scheduling have great practical
relevance but present challenges due to their NP-hard combinatorial nature, hard constraints on the
number of possible agents, and hard-to-optimize objective functions. This paper introduces PARCO
(Parallel AutoRegressive Combinatorial Optimization), a novel approach that learns fast surrogate solvers
for multi-agent combinatorial problems with reinforcement learning by employing parallel autoregressive
decoding. We propose a model with a Multiple Pointer Mechanism to efficiently decode multiple
decisions simultaneously by different agents, enhanced by a Priority-based Conflict Handling
scheme. Moreover, we design specialized Communication Layers that enable effective agent
collaboration, thus enriching decision-making. We evaluate PARCO in representative multi-agent
combinatorial problems in routing and scheduling and demonstrate that our learned solvers
offer competitive results against both classical and neural baselines in terms of both solution
quality and speed. We make our code openly available at https://github.com/ai4co/parco.
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Federico Berto, Chuanbo Hua, Junyoung Park, Laurin Luttmann, Yining Ma, Fanchen Bu, Jiarui Wang,
Haoran Ye, Minsu Kim, Sanghyeok Choi, Nayeli Gast Zepeda, Andre Hottung, Jianan Zhou, Jieyi Bi, Yu
Hu, Fei Liu, Hyeonah Kim, Jiwoo Son, Haeyeon Kim, Davide Angioni, Wouter Kool, Zhiguang Cao,
Qingfu Zhang, Joungho Kim, Jie Zhang, Kijung Shin, Cathy Wu, Sungsoo Ahn, Guojie Song,
Changhyun Kwon, Kevin Tierney, Lin Xie, Jinkyoo Park (2025) RL4CO: an Extensive Reinforcement Learning for Combinatorial Optimization Benchmark. KDD ’25: Proceedings of
the 31st ACM SIGKDD Conference on Knowledge Discovery and Data Mining,
V.2, 5278–5289. arXiv doi
github abstract
Deep reinforcement learning (RL) has recently shown significant benefits in solving combinatorial
optimization (CO) problems, reducing reliance on domain expertise, and improving computational
efficiency. However, the field lacks a unified benchmark for easy development and standardized comparison
of algorithms across diverse CO problems. To fill this gap, we introduce RL4CO, a unified and
extensive benchmark with in-depth library coverage of 23 state-of-the-art methods and more than
20 CO problems. Built on efficient software libraries and best practices in implementation,
RL4CO features modularized implementation and flexible configuration of diverse RL algorithms,
neural network architectures, inference techniques, and environments. RL4CO allows researchers
to seamlessly navigate existing successes and develop their unique designs, facilitating the
entire research process by decoupling science from heavy engineering. We also provide extensive
benchmark studies to inspire new insights and future work. RL4CO has attracted numerous
researchers in the community and is open-sourced at https://github.com/ai4co/rl4co.
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Hyeonah Kim, Sanghyeok Choi, Jiwoo Son, Jinkyoo Park, Changhyun Kwon (2025) Neural Genetic Search in Discrete Spaces. ICML
’25: Proceedings of the 42nd International Conference on Machine Learning, in
Proceedings of Machine Learning Research, 267:29969–29987. arXiv
url
github abstract
Effective search methods are crucial for improving the performance of deep generative models at test time.
In this paper, we introduce a novel test-time search method, Neural Genetic Search (NGS), which
incorporates the evolutionary mechanism of genetic algorithms into the generation procedure of deep
models. The core idea behind NGS is its crossover, which is defined as parent-conditioned generation using
trained generative models. This approach offers a versatile and easy-to-implement search algorithm for deep
generative models. We demonstrate the effectiveness and flexibility of NGS through experiments across
three distinct domains: routing problems, adversarial prompt generation for language models, and
molecular design.
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Chuanbo Hua, Federico Berto, Jiwoo Son, Seunghyun Kang, Changhyun Kwon, Jinkyoo Park (2025) CAMP: Collaborative Attention Model with Profiles for Vehicle Routing Problems.
AAMAS ’25: Proceedings of the 2025 International Conference on Autonomous Agents and
Multiagent Systems, 1015–1024 arXiv github
abstract
The profiled vehicle routing problem (PVRP) is a generalization of the heterogeneous capacitated vehicle
routing problem (HCVRP) in which the objective is to optimize the routes of vehicles to serve client
demands subject to different vehicle profiles, with each having a preference or constraint on a per-client
basis. While existing learning methods have shown promise for solving the HCVRP in real time, no
learning method exists to solve the more practical and challenging PVRP. In this paper, we
propose a Collaborative Attention Model with Profiles (CAMP), a novel approach that learns
efficient solvers for PVRP using multi-agent reinforcement learning. CAMP employs a specialized
attention-based encoder architecture to embed profiled client embeddings in parallel for each vehicle
profile. We design a communication layer between agents for collaborative decision-making across
profiled embeddings at each decoding step and a batched pointer mechanism to attend to the
profiled embeddings to evaluate the likelihood of the next actions. We evaluate CAMP on two
variants of PVRPs: PVRP with preferences (PRVP-P), which explicitly influence the reward
function, and PVRP with zone constraints (PVRP-ZC) scenarios with different numbers of
agents and nodes, demonstrating that our learned solvers achieve competitive results compared
to both classical state-of-the-art neural multi-agent models in terms of solution quality and
computational efficiency. We make our code openly available at https://github.com/ai4co/camp.
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Sobhanan, A., S. Mahmoudinazlou, H. Charkhgard, C. Kwon. (2024) A branch-and-price algorithm for emergency humanitarian logistics with a mixed truck-drone fleet. Proceedings of the IISE Annual
Conference & Expo 2024, 6pages. (Finalist for the 2024 IISE OR Track Best Paper Award)
pdf abstract
Humanitarian aid distribution often prioritizes rapid relief operations or emergency services under time
constraints, as opposed to commercial transportation problems, where the primary objective is to minimize
operational costs. Drones can offer immense potential to achieve this goal by leveraging their aerial
mobility. Specifically, drones can surpass ground transportation and navigate directly through disrupted or
inaccessible roads, ensuring the quickest path to deliver aid where the ground vehicle may face obstacles.
However, drones have limitations in terms of flying range and load capacity. To effectively
provide time-sensitive emergency services, combining a ground vehicle with one or more aerial
vehicles enhances coverage. Our approach integrates a truck as a mobile depot for multiple
drones, where a drone battery is replenished on landing after a flight, and the fleet operates
in tandem to serve the locations visited. We formulate a mixed-integer linear programming
(MILP) model to maximize the weighted sum of locations served by this mixed truck-drone fleet
under time constraints. We further develop a branch-and-price algorithm to solve this problem,
where the pricing subproblem is solved using dynamic programming recursions with dominance
rules. Our results demonstrate the computational superiority of this method compared to a
commercial optimization solver and its potential for expediting aid distribution during an emergency.
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Junyoung Park, Changhyun Kwon, Jinkyoo Park (2023) Learn to solve the min-max multiple traveling salesmen problem with reinforcement learning. Proceedings of the 2023 International
Conference on Autonomous Agents and Multiagent Systems (AAMAS 2023), 878—886, 9
pages. url pdf
abstract
We propose ScheduleNet, a scalable scheduler that minimizes the task completion time by coordinating
multiple agents. We formulate the min-max multiple traveling salesmen problem (mTSP) as a Markov
decision process with an episodic reward and derive a scalable decision-making policy using reinforcement
learning (RL). The decision-making procedure of ScheduleNet includes: (1) representing the
state of a problem with the agent-task graph, (2) extracting node embedding for agents and
tasks by employing the type-aware graph attention, (3) and computing the task assignment
probability with the computed node embedding. We show that ScheduleNet can outperform other
heuristic approaches and existing deep RL approaches, particularly validating its exceptional
effectiveness in solving large and practical problems. We also confirm that ScheduleNet can
effectively solve practical mTSP variants, which include limited observation and online mTSP.
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C. Kwon. (2011) Conditional Value-at-Risk Model for Hazardous Materials Transportation, in Proceedings of the 2011 Winter Simulation Conference, S. Jain, R. R. Creasey, J.
Himmelspach, K. P. White, and M. Fu, eds. pp. 1708-1714 doi
abstract
This paper investigates how the conditional value-at-risk (CVaR) can be used to mitigate risk in hazardous
materials (hazmat) transportation. Routing hazmat must consider accident probabilities and accident
consequences that depend on the hazmat types and route choices. This paper proposes a new method for
mitigating risk based on CVaR measure. While the CVaR model is popularly used in financial portfolio
optimization problems, its application in hazmat transportation is new. A computational method for
determining the optimal CVaR route is proposed and illustrated by a case study in the road network
surrounding Albany, NY.
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Jeong, B., C. Kwon, Y.S. Zhang, and S. Yang. (2010) Evaluating the Research Performance of a R\&D Program: an Application of DEA. Proceedings of the International
Multi-Conference of Engineers and Computer Scientists 2010 Vol III, 5 pages.
pdf
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Friesz, T. L., M. A. Rigdon and C. Kwon. (2008) A New Gradient Projection Algorithm for the Dynamic User Equilibrium Problem. International Symposium on Dynamic Traffic
Assignment 2008, 9 pages.
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Friesz, T. L., C. Kwon and M. A. Rigdon. (2007) A Model of Competition in Service Management. Proceedings of 2007 IEEE/INFORMS
International Conference on Service Operations and Logistics, and Informatics, 6 pages.
doi
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Friesz, T. L., C. Kwon, A. Chow and B. Heydecker. (2007) A Dynamic Efficient Toll Problem. The Sixth Triennial Symposium on
Transportation Analysis (TRISTAN VI), 4 pages pdf
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Friesz, T. L., R. Mookherjee and C. Kwon. (2006) Dynamic Non-cooperative Games as a Foundation for Modeling Dynamic User Equilibrium. The First International Symposium on Dynamic
Traffic Assignment, 18 pages. pdf
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Friesz, T. L., C. Kwon and R. Mookherjee. (2006) A Computable Theory of Dynamic Congestion Pricing The First International Symposium on Dynamic
Traffic Assignment, 15 pages. pdf