Variables Reduction in Sequential Resource Allocation Problems

Abstract

This paper presents a general framework to address diverse notoriously difficult problems arising in the area of optimal resource management, exploitation of natural reserves, pension fund valuation, environmental protection, and storage operation. Using some common abstract features of this problem class, we present a technique which provides a significant reduction of decision variables. As an application, we discuss a battery storage control to show how a decision problem, which is practically unsolvable in the original formulation, can be treated by our method.

Keywords

• dynamic programming
• battery control
• storage valuation