Discrete Dynamic Programming and Capital Allocation
Dynamic programming algorithms are developed for optimal capital allocation subject to budget constraints. We extend the work of Weingartner [Weingartner, H. M. 1966. Capital budgeting of interrelated projects: Survey and synthesis. Management Sci. 12(7, March) 485-516.] and Weingartner and Ness [Weingartner, H. M., D. N. Ness. 1967. Methods for the solution of the multi-dimensional 0/1 knapsack problem. Oper. Res. 15(1, January-February) 83-108.] by including multilevel projects, reinvesting returns, borrowing and lending, capital deferrals, and project interactions. We are able to handle dynamic programming models with several state variables because the optimal returns are monotone non-decreasing step functions. Computational experience with a variety of problems is reported.
Volume (Year): 15 (1969)
Issue (Month): 9 (May)
|Contact details of provider:|| Postal: 7240 Parkway Drive, Suite 300, Hanover, MD 21076 USA|
Web page: http://www.informs.org/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:15:y:1969:i:9:p:494-505. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.