Dynamic programming

Dynamic programming is a mathematical technique which provides a systematic procedure for determining the combination of decisions that maximizes overall effectiveness. In this paper, the author introduces the general idea of the dynamic programming. Specifically, it analyzes the nature of dynamic programming and models, the nature of the solution procedure of the dynamic programming and its areas of application, and the advantages and the disadvantages of the dynamic programming. The thesis includes such topics as the stagecoach problem and the principle of optimality as well as the deterministic and the probabilistic dynamic programming