Article ID: | iaor20003640 |
Country: | Netherlands |
Volume: | 119 |
Issue: | 3 |
Start Page Number: | 635 |
End Page Number: | 651 |
Publication Date: | Dec 1999 |
Journal: | European Journal of Operational Research |
Authors: | Chun Young H. |
Keywords: | programming: dynamic |
We consider the problem of selecting the single best choice when several groups of choices are presented sequentially for evaluation. In the so-called group interview problem, we assume that the values of choices are random observations from a known distribution function and derive the optimal search strategy that maximizes the probability of selecting the best among all choices. Under the optimal search strategy derived by means of a dynamic programming technique, a decision maker simply selects the best choice in the group under consideration if its value is higher than the pre-specified decision value for that group. We also consider the optimal ordering strategy for the case where the decision maker is permitted to rearrange the sequence of groups for evaluation. We show that the optimal search and ordering strategies can be applied to many sequential decision problems such as the store location problem.