On the Theory of Dynamic Programming—A Warehousing Problem

In a recent report, [Charnes, A., W. W. Cooper. Generalizations of the warehousing model. O. N. R. Research Memorandum, No. 34, 1955, Graduate School of Industrial Administration, Carnegie Institute of Technology.], Charnes and Cooper present a solution by means of linear programming techniques of one version of what is called the “warehouse problem”. The purpose of this note is to indicate how problems of this general nature may be approached by means of the functional equation technique of the theory of dynamic programming, and thereby reduced to a very simple and straight-forward computational problem.