Optimal Allocations in the Construction of k-Out-of-n Reliability Systems

C. Derman, G. J. Lieberman and S. M. Ross
Additional contact information
C. Derman: Columbia University
G. J. Lieberman: Stanford University
S. M. Ross: University of California, Berkeley

Management Science, 1974, vol. 21, issue 3, 241-250

Abstract: We want to build n components so as to form an n component system which will function if at least k of the components function. If x dollars are invested in building a component, then this component will function with probability P(x). Given a total income of A dollars, the problem of interest is to determine how much money we should invest in each component so as to maximize the probability of attaining a functioning system. This problem is considered both in the sequential and in the nonsequential cases. Conditions under which it is optimal to allocate A/n units at each stage, when A is your initial fortune, are presented. The special case P(x) = min(x, 1) is also considered in detail.

Date: 1974
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.21.3.241 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:21:y:1974:i:3:p:241-250

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().