IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v331y2026i1p186-199.html

Reinforcement learning algorithm for reusable resource allocation with unknown rental time distribution

Author

Listed:
  • Wang, Ziwei
  • Song, Jie
  • Liu, Yixuan
  • Zhao, Jingtong

Abstract

We explore a scenario where a platform must decide on the price and type of reusable resources for sequentially arriving customers. The product is rented for a random period, during which the platform also extracts rewards based on a prearranged agreement. The expected reward varies during the usage time, and the platform aims to maximize revenue over a finite horizon. Two primary challenges are encountered: the stochastic usage time introduces uncertainty, affecting product availability, and the platform lacks initial knowledge about reward and usage time distributions. In contrast to conventional online learning, where usage time distributions are parametric, our problem allows for unknown distribution types. To overcome these challenges, we formulate the problem as a Markov decision process and model the usage time distribution using a hazard rate. We first introduce a greedy policy in the full-information setting with a provable 1/2-approximation ratio. We then develop a reinforcement learning algorithm to implement this policy when the parameters are unknown, allowing for non-parametric distributions and time-varying rewards. We further prove that the algorithm achieves sublinear regret against the greedy policy. Numerical experiments on synthetic data as well as a real dataset from TikTok demonstrate the effectiveness of our method.

Suggested Citation

  • Wang, Ziwei & Song, Jie & Liu, Yixuan & Zhao, Jingtong, 2026. "Reinforcement learning algorithm for reusable resource allocation with unknown rental time distribution," European Journal of Operational Research, Elsevier, vol. 331(1), pages 186-199.
  • Handle: RePEc:eee:ejores:v:331:y:2026:i:1:p:186-199
    DOI: 10.1016/j.ejor.2025.09.012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221725007295
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ejor.2025.09.012?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Yanzhe (Murray) Lei & Stefanus Jasin, 2020. "Real-Time Dynamic Pricing for Revenue Management with Reusable Resources, Advance Reservation, and Deterministic Service Time Requirements," Operations Research, INFORMS, vol. 68(3), pages 676-685, May.
    2. Esmaeil Keyvanshokooh & Mohammad Zhalechian & Cong Shi & Mark P. Van Oyen & Pooyan Kazemian, 2025. "Contextual Learning with Online Convex Optimization: Theory and Application to Medical Decision-Making," Management Science, INFORMS, vol. 71(12), pages 10442-10464, December.
    3. Retsef Levi & Ana Radovanović, 2010. "Provably Near-Optimal LP-Based Policies for Revenue Management in Systems with Reusable Resources," Operations Research, INFORMS, vol. 58(2), pages 503-507, April.
    4. Xin Pan & Jie Song & Jingtong Zhao & Van-Anh Truong, 2020. "Online contextual learning with perishable resources allocation," IISE Transactions, Taylor & Francis Journals, vol. 52(12), pages 1343-1357, December.
    5. Dan Zhang & Daniel Adelman, 2009. "An Approximate Dynamic Programming Approach to Network Revenue Management with Customer Choice," Transportation Science, INFORMS, vol. 43(3), pages 381-394, August.
    6. Xinchang Xie & Itai Gurvich & Simge Küçükyavuz, 2025. "Dynamic Allocation of Reusable Resources: Logarithmic Regret in Overloaded Networks," Operations Research, INFORMS, vol. 73(4), pages 2097-2124, July.
    7. Chi Jin & Zhuoran Yang & Zhaoran Wang & Michael I. Jordan, 2023. "Provably Efficient Reinforcement Learning with Linear Function Approximation," Mathematics of Operations Research, INFORMS, vol. 48(3), pages 1496-1521, August.
    8. Esmaeil Keyvanshokooh & Cong Shi & Mark P. Van Oyen, 2021. "Online Advance Scheduling with Overtime: A Primal-Dual Approach," Manufacturing & Service Operations Management, INFORMS, vol. 23(1), pages 246-266, 1-2.
    9. Jackie Baek & Will Ma, 2022. "Technical Note—Bifurcating Constraints to Improve Approximation Ratios for Network Revenue Management with Reusable Resources," Operations Research, INFORMS, vol. 70(4), pages 2226-2236, July.
    10. Paat Rusmevichientong & Mika Sumida & Huseyin Topaloglu, 2020. "Dynamic Assortment Optimization for Reusable Products with Random Usage Durations," Management Science, INFORMS, vol. 66(7), pages 2820-2844, July.
    11. Huiwen Jia & Cong Shi & Siqian Shen, 2024. "Online Learning and Pricing for Service Systems with Reusable Resources," Operations Research, INFORMS, vol. 72(3), pages 1203-1241, May.
    12. Paat Rusmevichientong & Mika Sumida & Huseyin Topaloglu & Yicheng Bai, 2023. "Revenue Management with Heterogeneous Resources: Unit Resource Capacities, Advance Bookings, and Itineraries over Time Intervals," Operations Research, INFORMS, vol. 71(6), pages 2196-2216, November.
    13. Mohammad Zhalechian & Esmaeil Keyvanshokooh & Cong Shi & Mark P. Van Oyen, 2022. "Online Resource Allocation with Personalized Learning," Operations Research, INFORMS, vol. 70(4), pages 2138-2161, July.
    14. Mohammad Zhalechian & Esmaeil Keyvanshokooh & Cong Shi & Mark P. Van Oyen, 2023. "Data-Driven Hospital Admission Control: A Learning Approach," Operations Research, INFORMS, vol. 71(6), pages 2111-2129, November.
    15. Wang Chi Cheung & Will Ma & David Simchi-Levi & Xinshang Wang, 2022. "Inventory Balancing with Online Learning," Management Science, INFORMS, vol. 68(3), pages 1776-1807, March.
    16. Yiwei Chen & Retsef Levi & Cong Shi, 2017. "Revenue Management of Reusable Resources with Advanced Reservations," Production and Operations Management, Production and Operations Management Society, vol. 26(5), pages 836-859, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David Simchi-Levi & Zeyu Zheng & Feng Zhu, 2025. "On Greedy-Like Policies in Online Matching with Reusable Network Resources and Decaying Rewards," Management Science, INFORMS, vol. 71(10), pages 8908-8926, October.
    2. Xinchang Xie & Itai Gurvich & Simge Küçükyavuz, 2025. "Dynamic Allocation of Reusable Resources: Logarithmic Regret in Overloaded Networks," Operations Research, INFORMS, vol. 73(4), pages 2097-2124, July.
    3. Legros, Benjamin & van Leeuwaarden, J.S.H. & Fransoo, Jan C., 2025. "Managing reusable resources with usage time limits," Other publications TiSEM 10a58c0a-9a6c-49a4-8a41-d, Tilburg University, School of Economics and Management.
    4. Arlen Dean & Mohammad Zhalechian & Mark P. Van Oyen, 2025. "Dynamic Care Unit Placements Under Unknown Demand with Learning," Manufacturing & Service Operations Management, INFORMS, vol. 27(5), pages 1396-1414, September.
    5. Zihao Qu & Milind Dawande & Ganesh Janakiraman, 2022. "Technical Note—A Near-Optimal Algorithm for Real-Time Order Acceptance: An Application in Postacute Healthcare Services," Operations Research, INFORMS, vol. 70(4), pages 2213-2225, July.
    6. Jackie Baek & Will Ma, 2022. "Technical Note—Bifurcating Constraints to Improve Approximation Ratios for Network Revenue Management with Reusable Resources," Operations Research, INFORMS, vol. 70(4), pages 2226-2236, July.
    7. Mohammad Zhalechian & Esmaeil Keyvanshokooh & Cong Shi & Mark P. Van Oyen, 2022. "Online Resource Allocation with Personalized Learning," Operations Research, INFORMS, vol. 70(4), pages 2138-2161, July.
    8. Yiding Feng & Rad Niazadeh & Amin Saberi, 2024. "Technical Note—Near-Optimal Bayesian Online Assortment of Reusable Resources," Operations Research, INFORMS, vol. 72(5), pages 1861-1873, September.
    9. Paat Rusmevichientong & Mika Sumida & Huseyin Topaloglu, 2020. "Dynamic Assortment Optimization for Reusable Products with Random Usage Durations," Management Science, INFORMS, vol. 66(7), pages 2820-2844, July.
    10. Yanzhe (Murray) Lei & Stefanus Jasin, 2020. "Real-Time Dynamic Pricing for Revenue Management with Reusable Resources, Advance Reservation, and Deterministic Service Time Requirements," Operations Research, INFORMS, vol. 68(3), pages 676-685, May.
    11. Qi (George) Chen & Yanzhe (Murray) Lei & Stefanus Jasin, 2024. "Real-Time Spatial–Intertemporal Pricing and Relocation in a Ride-Hailing Network: Near-Optimal Policies and the Value of Dynamic Pricing," Operations Research, INFORMS, vol. 72(5), pages 2097-2118, September.
    12. Huiwen Jia & Cong Shi & Siqian Shen, 2024. "Online Learning and Pricing for Service Systems with Reusable Resources," Operations Research, INFORMS, vol. 72(3), pages 1203-1241, May.
    13. Xiao-Yue Gong & Vineet Goyal & Garud N. Iyengar & David Simchi-Levi & Rajan Udwani & Shuangyu Wang, 2022. "Online Assortment Optimization with Reusable Resources," Management Science, INFORMS, vol. 68(7), pages 4772-4785, July.
    14. Yuhang Ma & Paat Rusmevichientong & Mika Sumida & Huseyin Topaloglu, 2020. "An Approximation Algorithm for Network Revenue Management Under Nonstationary Arrivals," Operations Research, INFORMS, vol. 68(3), pages 834-855, May.
    15. Woonghee Tim Huh & Joseph Paat & Maurice Queyranne, 2026. "Performance of the Offer-Everything Policy," Operations Research, INFORMS, vol. 74(1), pages 141-160, January.
    16. Mohammad Zhalechian & Esmaeil Keyvanshokooh & Cong Shi & Mark P. Van Oyen, 2023. "Data-Driven Hospital Admission Control: A Learning Approach," Operations Research, INFORMS, vol. 71(6), pages 2111-2129, November.
    17. Park, Junseok & Moon, Ilkyeong, 2024. "Pricing strategies in an M/G/m/m loss system: A case study of Incheon International Airport customer services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 192(C).
    18. Jinpeng Liang & Guodong Lyu & Chung-Piaw Teo & Ziyou Gao, 2023. "Online Passenger Flow Control in Metro Lines," Operations Research, INFORMS, vol. 71(2), pages 768-775, March.
    19. Jacob Feldman & Nan Liu & Huseyin Topaloglu & Serhan Ziya, 2014. "Appointment Scheduling Under Patient Preference and No-Show Behavior," Operations Research, INFORMS, vol. 62(4), pages 794-811, August.
    20. Omar Besbes & Adam N. Elmachtoub & Yunjie Sun, 2022. "Technical Note—Static Pricing: Universal Guarantees for Reusable Resources," Operations Research, INFORMS, vol. 70(2), pages 1143-1152, March.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:331:y:2026:i:1:p:186-199. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.