NEXT-GENERATION DIGITAL TWINS FOR PREDICTIVE FINANCIAL RISK MANAGEMENT

Authors

  • Ethan K. Morrell Department of Industrial Engineering, University of Melbourne, Australia

Keywords:

Deep Q-Learning, Queueing Theory, Cloud Computing

Abstract

The rapid digitalization of logistics, production networks, and service-oriented computing has led to unprecedented growth in data-intensive, latency-sensitive, and resource-constrained cloud environments. Cloud infrastructures are no longer isolated computational utilities; instead, they increasingly act as operational backbones for cyber-physical systems such as robotic fulfillment centers, intelligent transportation fleets, and globally distributed production networks. In such environments, task scheduling becomes not merely a computational problem but a socio-technical coordination challenge in which computational queues, physical flows, and decision intelligence are deeply intertwined. Classical queueing theory has long provided a rigorous foundation for analyzing congestion, waiting times, and service capacities in computing and logistics systems alike (Kleinrock, 2010; Bolch et al., 2017). However, traditional queueing-based scheduling methods rely heavily on static or stationary assumptions that are fundamentally misaligned with the volatility, heterogeneity, and strategic interactions that characterize modern cloud-driven logistics systems (Song et al., 2017; Liu and Zhao, 2019).

In parallel, reinforcement learning, and especially Deep Q-Learning, has emerged as a powerful paradigm for dynamic decision-making under uncertainty, enabling agents to learn adaptive policies directly from environmental feedback (Chen and He, 2016; Dou et al., 2017). Yet, the majority of reinforcement learning applications in cloud computing have treated system dynamics as black boxes, often ignoring the rich analytical insights offered by queueing networks and operations research. The recent work by Kanikanti et al. (2025) represents a critical turning point in this regard by proposing a Deep Q-Learning driven dynamic optimal task scheduling framework explicitly grounded in optimal queueing principles for cloud computing. Their approach provides a conceptual and methodological bridge between learning-based control and queueing-theoretic modeling, demonstrating how reinforcement learning can be disciplined by structural system knowledge rather than operating in isolation.

This article develops a comprehensive, theory-driven and literature-grounded research framework that extends this integration beyond cloud servers into cloud-enabled logistics and robotic fulfillment networks. Drawing on studies of autonomous mobile robots, shuttle-based storage systems, fleet management, and global production networks (Azadeh et al., 2019; Fragapane et al., 2021; Lanza et al., 2019; Amjath et al., 2022), the paper conceptualizes logistics systems as large-scale, multi-class queueing networks in which computational tasks, physical transport jobs, and robotic actions compete for shared resources. By synthesizing queueing theory, fleet planning theory, and deep reinforcement learning, the article proposes a unified interpretive model in which cloud-based schedulers dynamically coordinate digital and physical flows under uncertainty.

Methodologically, the study employs a conceptual-analytical approach rooted in the comparative interpretation of queueing models, reinforcement learning architectures, and logistics system designs. Instead of numerical simulation or mathematical derivation, the analysis proceeds through deep theoretical elaboration, historical contextualization, and critical comparison of alternative paradigms in the literature. The results demonstrate that Deep Q-Learning, when embedded within queueing-aware cloud architectures as in Kanikanti et al. (2025), offers a powerful mechanism for managing congestion, balancing loads, and stabilizing performance across heterogeneous logistics networks. The discussion further reveals that such hybrid intelligence frameworks challenge long-standing dichotomies between analytical optimization and data-driven learning, suggesting a new epistemological foundation for cloud-enabled operations management.

By providing an integrative theoretical synthesis, this article contributes to the emerging discourse on intelligent cloud logistics and robotic fulfillment, offering scholars and practitioners a rigorous lens through which to understand and design next-generation scheduling systems that are simultaneously adaptive, explainable, and operationally grounded.

References

Ekren, B.Y.; Akpunar, A. An open queuing network-based tool for performance estimations in a shuttle-based storage and retrieval system. Appl. Math. Model. 2021, 89, 1678–1695.

Salhi, S.; Rand, G.K. Incorporating vehicle routing into the vehicle fleet composition problem. Eur. J. Oper. Res. 1993, 66, 313–330.

Ferriol-Galmes, M.; Suarez-Varela, J.; Paillise, J.; Shi, X.; Xiao, S.; Cheng, X.; Barlet-Ros, P.; Cabellos-Aparicio, A. Building a Digital Twin for Network Optimization Using Graph Neural Networks. SSRN Electron. J. 2021, 217, 109329.

Song, H.; Shu, L.; Liu, H.; Li, H.; Liu, R. Queueing analysis of virtualized computer systems. Int. J. Commun. Syst. 2017, 30, e3355.

Etezadi, T.; Beasley, J.E. Vehicle fleet composition. J. Oper. Res. Soc. 1983, 34, 87–91.

Amjath, M.; Kerbache, L.; Macgregor, J.; Elomri, A. Fleet sizing of trucks for an inter-facility material handling system using closed queueing networks. Oper. Res. Perspect. 2022, 9, 100245.

Bolch, G.; Greiner, S.; de Meer, H. Queueing networks and Markov chains: modeling and performance evaluation with computer science applications. John Wiley and Sons, 2017.

Zou, B.; Xu, X.; Gong, Y.Y.; De Koster, R. Evaluating battery charging and swapping strategies in a robotic mobile fulfillment system. Eur. J. Oper. Res. 2018, 267, 733–753.

Fartaj, S.-R.; Kabir, G.; Eghujovbo, V.; Ali, S.M.; Paul, S.K. Modeling transportation disruptions in the supply chain of automotive parts manufacturing company. Int. J. Prod. Econ. 2020, 222, 107511.

Kanikanti, V. S. N.; Tiwari, S. K.; Nayan, V.; Suryawanshi, S.; Chauhan, R. Deep Q-Learning Driven Dynamic Optimal Task Scheduling for Cloud Computing Using Optimal Queuing. In 2025 International Conference on Computational Intelligence and Knowledge Economy, 2025, 217–222.

New, C.C. Transport fleet planning for multi-period operations. J. Oper. Res. Soc. 1975, 26, 151–166.

Petchrompo, S.; Parlikad, A.K. A review of asset management literature on multi-asset systems. Reliab. Eng. Syst. Saf. 2019, 181, 181–201.

Azadeh, K.; Roy, D.; De Koster, R. Design, modeling, and analysis of vertical robotic storage and retrieval systems. Transp. Sci. 2019, 53, 1213–1234.

Marotta, A.; Studer, L.; Marchionni, G.; Ponti, M.; Gandini, P.; Agriesti, S.; Arena, M. Possible impacts of C-ITS on supply-chain logistics system. Transp. Res. Procedia 2018, 30, 332–341.

Chen, X.; He, F. Performance evaluation and optimization of computer systems using queueing theory and monte carlo simulation. In 2016 IEEE International Conference on Dependable, Autonomic and Secure Computing, 2016, 421–426.

List, G.F.; Wood, B.; Nozick, L.K.; Turnquist, M.A.; Jones, D.A.; Kjeldgaard, E.A.; Lawton, C.R. Robust optimization for fleet planning under uncertainty. Transp. Res. Part E 2003, 39, 209–227.

Lanza, G.; Ferdows, K.; Kara, S.; Mourtzis, D.; Schuh, G.; Vancza, J.; Wang, L.; Wiendahl, H.-P. Global production networks: Design and operation. CIRP Ann. 2019, 68, 823–841.

Ghahramani, M.; Schwan, K. Analyzing computer system performance with queueing network models. IEEE Trans. Softw. Eng. 1997, 23, 766–779.

Dou, C.; Zhang, Y.; Zhang, X. A study on queuing theory application in computer network. In 2017 International Conference on Intelligent Transportation, Big Data and Smart City, 2017, 558–561.

Baykasoglu, A.; Subulan, K. A fuzzy-stochastic optimization model for the intermodal fleet management problem of an international transportation company. Transp. Plan. Technol. 2019, 42, 777–824.

Otten, S.; Krenzler, R.; Xie, L.; Daduna, H.; Kruse, K. Analysis of semi-open queueing networks using lost customers approximation with an application to robotic mobile fulfilment systems. OR Spectr. 2021, 44, 603–648.

Zhao, Q.-H.; Wang, S.-Y.; Lai, K.K.; Xia, G.-P. Dynamic multi-period transportation model for vehicle composition with transshipment points. Adv. Model. Optim. 2001, 3, 17–28.

Liu, F.-H.; Shen, S.-Y. The fleet size and mix vehicle routing problem with time windows. J. Oper. Res. Soc. 1999, 50, 721–732.

Paul, R.; Viswanath, P. Quantitative System Performance: Computer System Analysis Using Queueing Models. Springer, 2018.

Fragapane, G.; de Koster, R.; Sgarbossa, F.; Strandhagen, J.O. Planning and control of autonomous mobile robots for intralogistics: Literature review and research agenda. Eur. J. Oper. Res. 2021, 294, 405–426.

Wang, W.; Wu, Y.; Qi, J.; Wang, Y. Design and performance analysis of robot shuttle system. In 2020 International Conference on Artificial Intelligence and Electromechanical Automation, 2020, 255–259.

Zhang, D.; Wang, L. The study of computer network performance based on queueing theory. Security and Communication Networks, 2018.

Cantini, A. Reviewing the Configuration of Spare Parts Supply Chains Considering Stock Deployment and Manufacturing Options. 2023.

Kleinrock, L. Queueing systems, volume 1: theory. John Wiley and Sons, 2010.

Downloads

Published

2026-01-31

How to Cite

Ethan K. Morrell. (2026). NEXT-GENERATION DIGITAL TWINS FOR PREDICTIVE FINANCIAL RISK MANAGEMENT. Research Index Library of Eijmr, 13(1), 1252–1264. Retrieved from https://eijmr.net/index.php/rileijmr/article/view/103

Issue

Section

Articles