Dynamic Programming (Leaving Cert Applied Maths): Flashcards

A technique for solving complex problems by breaking them into simpler stages

Multi-stage decision problems

Routing, stock control, resource allocation, equipment maintenance

$\text{Value} = \text{Profit} - \text{Travel} + \text{OVD}$

$\text{Costs} = \text{Storage} + \text{Overheads} + \text{Hired Labour} + \text{OVD}$

$\text{Value} = \text{Profit} + \text{OVD}$

$\text{Value} = \text{Cost of new equipment} + \text{maintenance} - \text{resale value} + \text{OVD}$

Stage, State, Action, Destination, Value

Optimal Value to Destination

The optimal value that can be achieved from the destination state onwards

Number of time periods remaining

Current location

Time period (months with known demand)

Different products or projects

It finds the optimal solution