Hierarchical Approach To Multi-Criteria Dynamic Programming

AbstractMulti-criteria, multi-period discrete decision problems are considered. It is assumed that the decision maker has fixed single hierarchy in the set of multi-period criteria.The paper aims at discribing hierarchical approach to multi-criteria discrete dynamic programming. Then, a new interactive hierarchical dynamic programming technique based on the concept of period structure of considered solution is introduced. In the following stages we consider next criteria, one by one, using single objective dynamic programming method and we reduce sets of states and decisions according to the decision maker’s period requirments. After the last stage the decision maker is asked to point to one solution which suits him best. This solution is tested and, if it is not efficient, the set of efficient solutions better than the chosen one is constructed and presented. The decision maker can choose the final solution among the indicated solutions. If he is not satisfied, he can:– point to another solution and repe...