Accession Number : ADA138240
Title : On Solving a Dynamic Optimal Budgeting Problem
Descriptive Note : Scientific rept.
Corporate Author : GEORGE WASHINGTON UNIV WASHINGTON DC INST FOR MANAGEMENT SCIENCE AND ENGINEERING
Personal Author(s) : Falk, James E ; McCormick, Garth P
PDF Url : ADA138240
Report Date : 09 Jun 1983
Pagination or Media Count : 29
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.
Descriptors : *MANAGEMENT PLANNING AND CONTROL, *MATHEMATICAL MODELS, *PLANNING PROGRAMMING BUDGETING, *RESOURCES, DIFFERENTIAL EQUATIONS, DYNAMICS, MAINTENANCE, MANPOWER, OPTIMIZATION, VARIABLES
Subject Categories : Administration and Management
Distribution Statement : APPROVED FOR PUBLIC RELEASE