Educational Background

  • Ph.D., M.S. Michigan-Ann Arbor
  • B.S. Purdue

Teaching Interests

  • Business analytics and operations

Research Interests

  • Applied Operations Research:
  • Methodological Operations Research:
    • Markov decision processes
    • Dynamic Programming
    • Simulation
    • Network interdiction

Honors and Awards

  • Scott  Research Professor of Management  Awardee
  • Institute of Industrial Engineers Best Application  Paper - Operations 2009

Selected Publications

Health Care Applications

Z. Erkin,  M.D. Bailey,  L.M. Maillart,   A.J.  Schaefer,  M.S. Roberts,  Eliciting  Patients' Revealed Preferences:  An Inverse MDP  Approach,  Decision Analysis, 7(4):358-365, 2010.

Shechter, S.M., M.D. Bailey, and  A.J.  Schaefer, Replacing  Nonidentical Vital  Components to Extend  System Life, Naval Research Logistics, (55)7:700-703, 2008.

Shechter,  S.M.,  M.D.  Bailey,  and  A.J.  Schaefer,  A Modeling  Framework  for  Replacing Medical Therapies,  IIE  Transactions,  40(9):861-869, 2008.

Kreke,  J.E.,  M.D. Bailey,  A.J.  Schaefer,  and  M.S. Roberts,   Modeling  hospital  discharge policies for patients  with pneumonia-related sepsis,  IIE Transactions,  40(9):853-860, 2008. (Institute of Industrial Engineers Best Applied Paper in Operations  Engineering  and Anal­ ysis 2009)

Shechter, S.M., M.D. Bailey, A.J. Schaefer, and M.S. Roberts,  The Optimal Time to Initiate HIV Therapy  under  Ordered  States, Operations Research, 56(1):20-33, 2008.  (INFORMS Decision Analysis Section Best Student  Paper,  Honorable Mention)

Schaefer, A.J., M.D. Bailey, S.M. Shechter, and M.S. Roberts,  Modeling Medical Treatment using Markov Decision Processes, in Operations Research and Health Care: A Handbook of Methods and Applications  Series:  International  Series in  Operations Research and Man­ agement  Science, 593-612, Kluwer Academic Publishers,  2004, F. Sainfort,  M. Brandeau, and vV. Pierskalla,  eds.

Sequential Decisions Under Uncertainty

Bailey, M.D., Tavana, M., and T.E. Busch, Dynamic Air Tasking Evaluation in a Simu­lated Network-Centric Battlespace, International Journal of Operational Research, (5)1:1-25, 2009.

Bailey, M.D. and H. Bayrak, Shortest Path Network Interdiction with Asymmetric Infor­mation, Networks, 52(3):133-140. 2008.

Bailey, M,D., R.L. Smith, and J.M. Alden, Reach and Bound  Algorithm for Dynamic Pro­gramming, Networks, 52(1):1-7, 2008.

Bailey, M.D., Tavana, M., and T.E. Busch, A Multi-Criteria Vehicle-Target  Allocation  As­sessment Model for Network-Centric Joint Air Operations, International Journal of Operational Research, 3(3) :235-254, 2008.

Mazumdar, M., L. Wang, M.D. Bailey, and J. Valenzuela, Oligopoly Models for Market Price of Electricity under demand uncertainty and unit reliability, European Journal of Operational Research, 181:1309-1321, 2007.

Bailey, M.D., M. Tavana and T.E. Busch, Communication Role Allocation for Joint Air Operations in a Network-Centric  Environment, International Journal of Computer Science and Network Security, 6(12), December 2006.

Bailey, M.D., S.M. Shechter, and A.J. Schaefer, SPAR: Stochastic Programming with Ad­versarial Recourse. Operations Research Letters, 34:307-315, 2006.

Management Science Education

Bailey, M.D. and  M.J. Fry, What  Are the Odds? A Structured Approach for Unstructured Problems. INFORMS Trans. Ed.10(2):45-52, 2010.

Bailey, M.D., Management  Science Thinking, OR/MS Today 37(4): 8, 2010.

Show All


Bailey, M.D., Average Reward of a Given MDP  Policy, to appear in Wiley Encyclopedia of Operations Research and Management  Science, 2010.


Kreke, J.E.,  M.D. Bailey, A.J.  Schaefer, and  M.S. Roberts,  Discharge Policies for Patients with Severe Sepsis with Imperfect  Status  Observations. Submitted  to Decision Analysis


Bailey, M.D. P. Devapriya, S. Frazier and K. Wood.  Healthcare  System Impact  of Selective Patient  Expedited Discharge.

Bailey, M.D. and  H. Baymk. Static  and Dynamic  Resource Allocation for Perimeter  Secu­rity.

Bailey, M.D., H. Bayrak, RL, Smith, and J. Keoshian, Sequential Aggregation/Disaggregation in Cyclic Dynamic Programming  Networks.

Yildirim, T., M. Besterfield-Sacre, L. Shuman, R. Clark, and M.D. Bailey, Analyzing Engi­neering Students' Teamwork Processes Through Markov Chains.


Mazumdar, M., L. Wang, M.D. Bailey, and J. Valenzuela, A Stochastic Cournot  Model for the Market Price  of Electricity, Power Engineering Society General Meeting Proceedings, 2005.


"Patient Flow and Clinical Disease Modeling,"  Matthew Bailey, Source: Geisinger Health System,  2010-Present.

"Using Markov Decision Processes to Optimize Living-Donor Liver Transplants," Mark Roberts, M.D., Andrew Schaefer, Matthew  Bailey, Source:  NIH, $387,699, 2004-2006.

"In-zone Delivery Time Estimates," Matthew Bailey, Bopaya Bidanda, Source: Federal Express Ground, 2005.

"Solution  Acceleration  for Sequential  Problems using Dynamic  Programming," Matthew Bailey, Source: University of Pittsburgh Central  Research Development Fund,  2003-2005.


"Eliciting Patients' Revealed Preferences: An Inverse Markov Decision Process Approach." Lehigh University, Industrial Engineering  Department, November 2010 (invited).

"Modeling hospital discharge policies for patients  with pneumonia-related sepsis,"  IERC, Cancun,  Mexico, June  2010 (IIE Transactions Best Application Paper Award- Operations)

"Are Threshold Policies Sufficient for the Optimal Timing of HIV Treatment?" INFORMS, San Diego, CA, November 2009 (invited).

"The Interdiction of Competitive Markov Decision Process Models," INFORMS,  Seattle, WA, November 2007 (invited).

"Static and Dynamic Resource Allocation for Perimeter Security," INFORMS, Pittsburgh, PA, November 2006 (invited).

"Static and Dynamic Resource Allocation for Perimeter Security," INFORMS Military  Ap­plications Society, Mystic, CT, July 2006.

"The Optimal Time to Initiate HIV therapy," University of Cincinnati, Cincinnati, OH, 2006 (invited).

"Optimizing Testing and  Discharge Decisions in the Management of Severe Sepsis,"  IN­ FORMS, San Francisco,  CA, November 2005 (invited).

"The Optimal Time to Initiate HIV Therapy,"  INFORMS,  San Francisco, CA, November 2005 (invited).

"What Objective are Liver Surgeons Optimizing?"  INFORMS, San Francisco, CA, Novem­ber 2005 (invited).

"Extreme Event  Inventory  Control,"  INFORMS, San Francisco, CA, November 2005. Optimal  Decision Making in the  Management  of Severe Sepsis, IERC,  Atlanta, GA, May 2005.

"Applying MDPs to HIV Therapy. Planning," INFORMS Practice Conference, INFORMS Applied Probability Conference, Ottawa, ON, 2005.

"Network Interdiction under Asymmetric Information," INFORMS  Denver, CO, October 2004 (invited).

"Applying MDPs to HIV Therapy  Planning," INFORMS  Denver, CO, October  2004. "Optimizing  the  Management  of Severe Community-acquired Pneumonia  and Sepsis:  An JVIDP Approach,"  INFORMS  Denver, CO, October  2004.

"A Stochastic  Model for Market  Price of Electricity  and a Firm's Profit under  Oligopoly," INFORMS Denver, CO, October  2004.

"Solution Acceleration through Nested Aggregation,"  IERC, Houston, TX, May 2004.

"SPAR: Stochastic Programming with Adversarial Recourse," INFORMS  Atlanta, Novem­ber 2003 (invited).

"Solution Acceleration through Nested Aggregation," Mathematical Programming Confer­ence, Copenhagen, DK, August  2003 (invited).

"Controlled Hidden  Markov Models," Medical Decision Making Seminar, April 2003 (in­vited).

"Solution Acceleration for Large-Scale Decision Models," NetJets Corporation, Columbus, OH, February  2003 (invited).

"Dynamic Programming Solution Acceleration through Aggregation,"  2003 NSF DMII Grantees Conference, Birmingham, AL, January  2003.

"A Hybrid Approach to Multistage Stochastic Optimization," INFORMS San Jose, Novem­ber, 2002 (invited).

"Finding Near Optimal Solutions in Large Scale DP Networks Through Nested State Ag­gregation," INFORMS San Jose, November, 2002 (invited).

"Approximation in Production Line Design," RAND Corporation, Pittsburgh, PA, May 2002 (invited).

"Approximation in Production Line Design," Clemson University, Clemson, SC, April 2002 (invited).

"Error Bounded Heuristic Algorithms for Large-Scale Dynamic Programming," 17th Inter­national  Symposium on Mathematical Programming, August 2000 (invited).

"Additions and Improvements to RESPACE,  an Assembly Line Scheduling Tool," General Motors, Operations  Research Department, August 1998.


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