Dynamic Programming Model for Wastewater Plant Investment

The problem of wastewater treatment plant capacity is examined. A decision model, which utilizes a dynamic programming formulation, is developed which generates optimum plant capacity expansion strategies. The model allows for variation in available treatment technology, capital and operating costs, demand based on different population projections, and changes in construction and labor cost indices. The methodology of the model is in such form as to be readily usable by managers and decision makers interested in exploring short-term or long-term plant expansion programs. Comparison with other research on capacity expansion is made and the model is found consistent with previous theoretical results.