Multi-period Online Optimization in TAC SCM: The Supplier Offer Acceptance Problem

We formalize the supplier offer acceptance problem in TAC SCM as a multi-stage stochastic program. In addition, we suggest a heuristic for solving this problem using the rollout method, following one or two stage approximations of the multi-stage stochastic program as the base policy during rollouts. We also describe a heuristic based on the notion of marginal utility which is designed to scale our approach to problems with numerous decision variables.