Dynamic Programming Using Fuzzy Concept

Dynamic programming is applicable to any situation where items from several groups must be combined to form an entity, such as a composite investment or a transportation route connecting several districts. The most desirable entity is constructed in stages by fonning sub-entities that are candidates for inclusion in the most desirable entity are retained, and all other sub-entities are discarded. In the paper, the fuzzy dynamic programming is applied to the situation where each investment in the set has the following characteristics: the amount to be invested has several possible values, and the rate of return varies with the amount invested. Each sum that may be invested represents a distinct level of investment, and the investment therefore has multiple levels. A numeric example constructing a combination of multilevel investments is given in the paper.