Real option models maximize the estimated market value of operational assets, exploiting
the flexibility that decision makers have in managing these assets. Inspired by the valuation …

The operations‐finance interface (OFI) jointly optimizes material, monetary, and information
flows under intricate sources of uncertainty. To sketch the broad landscape in this emerging …

We investigate the management of a merchant wind energy farm co‐located with a grid‐
level storage facility and connected to a market through a transmission line. We formulate …

Electricity cannot yet be stored on a large scale, but technological advances leading to
cheaper and more efficient industrial batteries make grid-level storage of electricity …

Abstract Least squares Monte Carlo (LSM) is a state-of-the-art approximate dynamic
programming approach used in financial engineering and real options to value and manage …

Motivated by the real‐world challenges of real options evaluation faced by many companies
when commodity prices exhibit dramatic volatility and project values can become negative …

Commodity merchants use various heuristics to value leasing contracts on storage facilities
as real options and make inventory trading decisions. Two prominent heuristics sequentially …

Merchant operations involves valuing and hedging the cash flows of commodity-and energy-
conversion assets as real options based on stochastic models that inevitably embed model …

Approximate linear programs (ALPs) are well-known models for computing value function
approximations (VFAs) of intractable Markov decision processes (MDPs). VFAs from ALPs …

We formulate the merchant trading of energy in a network of storage and transport assets as
a Markov decision process with uncertain energy prices, generalizing known models …