ABSTRACT This paper examines the allocation of resource to different tasks in a production company. The company produces the same kinds of goods and want to allocate m number of tasks to 50 number of machines. These machines are subject to breakdown. It is expected that the breakdown machines will be repaired and put into operation. From past records, the company estimated the profit the machines will generate from the various tasks at the first stage of the operation. Also, the company estimated the probability of breakdown of the machines for performing each of the tasks. The aim of this paper is to determine the expected maximize profit that will accrue to the company over T horizon. The profit that will accrued to the company was obtained as N4,571,100,000 after 48 weeks of operation. At the infinty horizon, the profit was obtained to be N20,491,000,000 . It was found that adequate planning, prompt and effective maintainance can enhance the profitability of the company.
Cite this paper
C. Nwozo and C. Nkeki, "On a Dynamic Optimization Technique for Resource Allocation Problems in a Production Company," American Journal of Operations Research, Vol. 2 No. 3, 2012, pp. 357-363. doi: 10.4236/ajor.2012.23043.
 J. M. Mulvey and H. Vladimirou, “Stochastic Network Programming for Financial Planning Problems,” Manage- ment Science, Vol. 38, No. 11, 1992, pp. 1642-1664.
 B. Van Roy, D. P. Bertsekas, Y. Lee and J. N. Tsitsiklis, “A Neuro-Dynamic Programming Approach to Retailer Inventory Management,” Proceedings of the 36th IEEE Conference on Decision and Control, Vol. 4, 10-12 December 1997, pp. 4052-4057.
 W. B. Powell, “A Comparative Review of Alternative Algorithms for the Dynamic Vehicle Allocation Problem,” In: B. Golden and A. Assad, Eds., Vehicle Routing: Methods and Studies, North Holland, Amsterdam, 1988, pp. 249-292.
 W. B. Powell and H. Topaloglu, “Stochastic Programming in Transportation and Logistics,” In: A. Ruszczynski and A. Shapiro, Eds., Handbook in Operation Re- search and Management Science, Volume on Stochastic Programming, Elsevier, Amsterdam, 2003, pp. 555-635.
 W. B. Powell, “Approximate Dynamic Programming for Asset Management,” Princeton University, Princeton, 2004.
 H. Topaloglu and S. Kunnumkal, “Approximate Dynamic Programming Methods for an Inventory Allocation Problem under Uncertainty,” Cornell University, Ithaca, 2006.
 C. I. Nkeki, “On A Dynamic Programming Algorithm for Resource Allocation Problems,” Unpublished M.Sc. Thesis, University of Ibadan, Ibadan, 2006.
 D. P. Bertsekas, “Dynamic Programming and Optimal Control,” Athena Scientific, Belmont, Massachusetts, 2nd Edition, Vol. 2. 2001.