Optimal sequential decision-making for error propagation mitigation in digital twins
Authors: Annice Najafi, Shokoufeh Mirzaei
Organizations: Department of Industrial and Manufacturing Engineering California State Polytechnic University, Pomona Pomona, CA, 91768, USA
Abstract
Here, we explore the problem of error propagation mitigation in modular digital twins as a sequential decision process. Building on a companion study that used a Hidden Markov Model (HMM) to infer latent error regimes from surrogate-physics residuals, we develop a Markov Decision Process (MDP) in which the inferred regimes serve as states, corrective interventions serve as actions, and a scalar reward that takes into consideration the cost-benefit tradeoff between system fidelity and maintenance expense. The baseline transition matrix is extracted from the HMM-learned parameters. We then extend the formulation to a Partially Observable MDP (POMDP) that accounts for the imperfect nature of regime classification by maintaining a belief distribution updated via Bayesian filtering, with the HMM confusion matrix serving as the observation model. Both formulations are solved via dynamic programming and validated through Gillespie stochastic simulation. We then benchmark two model-free reinforcement learning algorithms, Q-learning and REINFORCE, to assess whether effective policies can be learned without explicit model knowledge. A systematic comparison of different intervention policies demonstrates that the MDP policy achieves the highest cumulative reward and fraction of time in nominal operation, while the POMDP recovers approximately 95% of MDP performance under realistic observation noise. Sensitivity analyses across observation quality, repair probability, and discount factor confirm the robustness of these conclusions, and the major gaps in the policy hierarchy are statistically significant at p<0.001. The gap between MDP and POMDP performance quantifies the value of information providing a principled criterion for investing in improved classification accuracy.
This work shows how adaptivity can enhance value realization of digital twins in civil engineering. We focus on adapting the state transition models within digital twins represented through probabilistic graphical models. The bi-directional interaction between the physical and virtual domains is modeled using dynamic Bayesian networks. By treating state transition probabilities as random variables endowed with conjugate priors, we enable hierarchical online learning of transition dynamics from a state to another through effortless Bayesian updates. We provide the mathematical framework to account for a larger class of distributions with respect to the current literature on digital twins. To compute dynamic policies with precision updates we solve parametric Markov decision processes through reinforcement learning. The proposed adaptive digital twin framework enjoys enhanced personalization, increased robustness, and improved cost-effectiveness. We assess our approach on a case study involving structural health monitoring and maintenance planning of a railway bridge.
A digital twin (DT) is a virtual model of a real-world system that can assist decision-making by simulating scenarios induced by different policies. However, typical machine learning-based DTs do not optimise for this use case. We prove that, when model capacity is limited, training DTs to minimise one-step transition errors can produce suboptimal models for ranking sets of policies according to a reward function. We further show that this holds empirically, even with expressive model classes. To address this, we introduce DT2, a decision-targeted DT training paradigm. Firstly, DT2 uses fitted Q-evaluation to estimate values of candidate policies from offline data. A DT is then trained to generate rollouts that preserve pairwise policy rankings derived from these proxy ground-truth values with an architecture-agnostic loss function. We empirically demonstrate the efficacy of our method across a range of settings and architectures. DT2 consistently improves policy ranking and reduces decision regret during policy selection relative to conventional DT training, both for policies used during training and for unseen policies, while maintaining a good level of raw simulation fidelity.
Digital-twin calibration requires interaction data that is expensive to collect. We study two acquisition decisions: which trajectories to generate, and when to spend a limited budget on privileged parameter measurements. Our framework couples an excitation-oriented reinforcement learning controller, a recurrent parameter estimator with predictive uncertainty, and a budgeted query policy. In Pendulum, a Random Forest diagnostic recovers gravity only weakly from task-oriented trajectories and does not recover mass or length, while a GRU trained on excitation-oriented trajectories reaches a mean absolute error of 0.0066 with no queries. We then withdraw continuous oracle access partway through an episode, so that the twin must run on the estimator's output for the remainder. The estimator-plus-policy pipeline achieves a terminal error of 0.0092 under a three-query budget, against 0.2031 for an uncalibrated twin. In partially observable Waterworld, five controllers produce different observed error profiles across three hidden parameters, and an estimator trained on a five-controller mixture reaches online normalized errors of roughly 4-5%. These exploratory case studies are not controlled ablations, but they motivate treating trajectory design and query allocation as explicit design variables in data-scarce calibration.