INFORMS Journal on Applied Analytics · 2020 · 133 citations · 31 references
ManagementIndustrial EngineeringOperations ManagementMarkov Decision ProcessesOptimizationSchedulingCombinatorial OptimizationPolicy LearningReinforcement LearningReinforcement Learning FoundationsTransportation ProblemsVehicle SchedulingDeep Reinforcement LearningDispatching AlgorithmsOrder DispatchingReinforcement Learning For SchedulingResponse TimeRide-hailing PlatformsSemi-markov Decision ProcessesSemi-markov Modelling
Order dispatching is instrumental to the marketplace engine of a large-scale ride-hailing platform, such as the DiDi platform, which continuously matches passenger trip requests to drivers at a scale of tens of millions per day. Because of the dynamic and stochastic nature of supply and demand in this context, the ride-hailing order-dispatching problem is challenging to solve for an optimal solution. Added to the complexity are considerations of system response time, reliability, and multiple objectives. In this paper, we describe how our approach to this optimization problem has evolved from a combinatorial optimization approach to one that encompasses a semi-Markov decision-process model and deep reinforcement learning. We discuss the various practical considerations of our solution development and real-world impact to the business.
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