DYNAMIC PROGRAMMING: METHODS AND APPLICATIONS,
Abstract
Dynamic programming is a mathematical technique applicable to multi-stage decision process problems. By observing that 'an optimal policy has the property that whatever the initial state and initial decision are, the remaining decisions must constitute an optimal policy with regard to the state resulting from the first decision' one can represent the process in the form of a functional equation. For finite processes, this equation can be solved recurrently, and one can determine the optimal policy. An interesting and important example of such a process is encountered when one considers the equipment replacement problem. One seeks to determine the optimal time to replace old equipment by new. This process is particularly amenable to dynamic programming, and an optimal policy can be generated under realistic assumptions. The functional equation approach of dynamic programming has also proved useful when applied to a wide variety of problems in the fields of industrial mathematics, logistics, economics, military planning, and pure mathematics and physics. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Oct 06, 1958
- Accession Number
- AD0606297
Entities
People
- Stuart E. Dreyfus
Organizations
- RAND Corporation