D2 June 2019 Q7

EdexcelOld spec15 marksDynamic Programming

7. A company has purchased a plot of land and has decided to build four holiday homes, A, B, C and D, on the land at the rate of one home per year.

The company expects that the construction costs each year will vary, depending on which houses have already been constructed and which house is currently under construction. The expected construction costs, in thousands of pounds, are shown in the table below.

Construction cost
Already builtABCD
Nothing25353530
A–455055
B50–4555
C6045–50
D655560–
A and B––4035
A and C–55–30
A and D–5560–
B and C45––50
B and D65–35–
C and D5540––
A and B and C–––65
A and B and D––55–
A and C and D–45––
B and C and D55–––

In order to manage annual cash flow, the company needs to choose the order in which it builds the holiday homes so that the greatest expected annual cost of construction is as small as possible.

(a) Write down the type of dynamic programming problem that the company needs to solve. (1)
(b) Use dynamic programming to complete the table in the answer book. (11)
(c) Hence determine the order in which the four holiday homes should be built and the total expected cost of construction. (3)