Dynamic Programming for Production Planning; an application of Dijkstra’s Model

Abstract

In this work, we present Dijkstra’s model as it relates to Richard Bellman equation. This model finds the routes by cost precedence. It is numerically illustrated using the model to obtain the overall optimal policy that minimizes the total cost. We also describe an approach for exploiting structure in Markov decision processes with continuous state variables.

Keywords: Dijkstra’s Model, State variables, Bellman equation, Sequential Decision Problems SDP, Markov Decision Processes.