Lecture 2 - DP: Applications, B2.1-2.2,4.4

Inventory control with continuous state, DP algorithm and first-order condition

Deterministic, finite state space

Applications:

  • Shortest path problem
  • Critical path analysis, find activities that are critical (delay the whole project)comparing DNA (or any string) sequences, find how similar the sequences are using DP
  • Stopping problems

Sections from the book: Bertsekas 2.1-2.2, 4.4