Use Dynamic Programming Algorithm to determine the optimal order quantity

in each period

t Dt At ct ht

1 120 160 2 0.5

2 150 160 2 0.5

3 50 160 2 0.5

4 120 160 2 0.5

5 80 160 2 0.5

6 40 160 2 0.5
z1*= 0
For period 2 :
c1,2 = 160 + 2*120 = 400
z2*= z1*+ c1,2 = 0 + 400 = 400
p2*= 1
For period 3:
c1,3 = 160 + (120 + 150)*2 + 0.5*150 = 775
c2,3 = 160 + 150*2 = 460
z3* = min (z1*+ c1,3, z2*+ c2,3) = min (775, 1060) = 775
p3*= 1
For period 4:
c1,4 = 160 + (120 + 150 + 50)*2 + 0.5*(150 + 50) + 0.5*50 = 925
c2,4 = 160 + (150 + 50)*2 + 0.5*50 = 585
c3,4 = 160 + 50*2 = 260
z4* = min (z1*+ c1,4, z2*+ c2,4, z3*+ c3,4) = min (925, 985, 1035) = 925
p4*= 1
For period 5:
c1,5 = 1345
c2,5 = 160 + (150 + 50 + 120)*2 + 0.5*(50 + 120) + 0.5*120 = 945
c3,5 = 160 + (50 + 120)*2 + 0.5*120 = 560
c4,5 = 160 + 120*2 = 400
z5* = min (z1*+ c1,5, z2*+ c2,5, z3*+ c3,5, z4*+ c4,5) = 1325
p5*= 4
For period 6:
c1,6 = 1715
c2,6 = 1225
c3,6 = 160 + (50 + 120 + 80)*2 + 0.5*(120 + 80) + 0.5*80 = 800
c4,6 = 160 + (120 + 80)*2 + 0.5*80 = 600
c5,6 = 160 + 80*2 = 320
z6* = min (z1*+ c1,6, z2*+ c2,6, z3*+ c3,6, z4*+ c4,6, z5*+ c5,6) = 1525
p6*= 4
For end:
c1,7 = 1845
c2,7 = 1385
c3,7 = 940
c4,7 = 160 + (120 + 80 + 40)*2 + 0.5*(80 + 40) + 0.5*40 = 720
c5,7 = 160 + (80 + 40)*2 + 0.5*40 = 420
c6,7 = 160 + 40*2 = 240
z7* = min (z1*+ c1,6, z2*+ c2,6, z3*+ c3,6, z4*+ c4,6, z5*+ c5,6) = 1645
p7*= 4