On Solving a Dynamic Optimal Budgeting Problem

Abstract

A solution procedure designed to solve a model which seeks to maximize a measure of asset value of owned resources is presented. These resources are updated over time, and change according to the amount of manpower and/or maintenance supplied. The specific model addressed is a slight modification of a model formulated by Rolf Clark. It is a dynamic model with a system of difference equations linking the variables in adjacent time periods. The objective function (to be maximized) is a discounted sum over time periods of a measure of the 'effective asset value' of the owned resources. Viewed as a mathematical optimization problem, the model appears to be a difficult nonconvex optimization problem. In Section 2, we establish the notation and the equations describing the model. The nature of the problem is such that we were able to accurately approximate the objective function and design a branch and bound method to solve the problem. The details of this "decoupling" are presented in Section 3.

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Document Details

Document Type
Technical Report
Publication Date
Jun 09, 1983
Accession Number
ADA138240

Entities

People

  • Garth Philip McCormick
  • James E. Falk

Organizations

  • George Washington University

Tags

Communities of Interest

  • Weapons Technologies

DTIC Thesaurus Topics

  • Abstracts
  • Algorithms
  • Applied Mathematics
  • Contracts
  • Difference Equations
  • Dynamics
  • Engineering
  • Equations
  • Logistics Management
  • Maintenance
  • Manpower
  • Mathematical Programming
  • Military Research
  • Schools
  • Security
  • Test And Evaluation
  • Universities

Readers

  • Finite Element Method (FEM) for solving Partial Differential Equations (PDEs)
  • Logistics and Supply Chain Management.
  • Mathematical Modeling and Probability Theory.

Technology Areas

  • AI & ML
  • AI & ML - Bayesian Inference
  • AI & ML - Machine Learning Algorithms