Dynamic optimization

Dynamic optimization is a mathematical approach used to make the best decisions over time, considering that situations and information can change. It involves breaking a complex problem into simpler parts to analyze how current choices affect future outcomes. Think of it like planning a road trip: you decide where to stop based on your immediate needs, like gas and food, while also considering how those stops will impact your overall journey and arrival time. This method is widely used in economics, finance, and operations research to improve decision-making in varying situations.