The Expected Opportunity Cost and Selecting the Optimal Subset
نویسندگان
چکیده
In this paper, we discuss the concept of the expected opportunity cost of a potentially incorrect selection as a measure of selection quality on a new selection procedure that is used to selecting the top m systems for large scale problems. This procedure is used the ordinal optimization method to reduce the size of the search space, and then it is used the idea of computing budget allocation OCBA−m to identify the top m systems from the survivors systems that we got it by ordinal optimization method. This procedure is tested on two numerical examples, buffer allocation problem BAP and M/M/1 queuing system. Clearly from the numerical results this procedure selects the optimal subset of systems with the minimum expected opportunity cost of a potentially incorrect selection. Mathematics Subject Classification: 62F07, 90C06, 49K30
منابع مشابه
Technical Note: An opportunity cost maintenance scheduling framework for a fleet of ships: A case study
The conventional method towards deriving schedule for a fleet of ships to minimize cost alone has the short-coming of not addressing the problem of operation revenue losses associated with delays during maintenance at ships dockyards. In this paper, a preventive maintenance schedule for a fleet of ships that incorporates op-portunity cost is presented. The idea is to assign a penalty cost to al...
متن کاملA Novel Model in Optimal Decision Making to Investment in the Industry with Regard to the Role of Unique Value-Added to Optimizing the Total Expected Cost Index
The main aim of this study, introduce a model todetermine the optimal values of the index value to minimize thetotal expected cost index and also the best decision making inselecting the industry and the region for investment by investors.For this purpose, the technique of linear programming to determinethe optimal values of the index value is used. Finally, FuzzyTOPSIS technique to prioritize ...
متن کاملRELIABILITY–BASED DESIGN OPTIMIZATION OF CONCRETE GRAVITY DAMS USING SUBSET SIMULATION
The paper deals with the reliability–based design optimization (RBDO) of concrete gravity dams subjected to earthquake load using subset simulation. The optimization problem is formulated such that the optimal shape of concrete gravity dam described by a number of variables is found by minimizing the total cost of concrete gravity dam for the given target reliability. In order to achieve this p...
متن کاملReactive Power Pricing Simultaneous Using Spot and Bilateral Market Models Considering Opportunity Cost
Reactive power as a utility of ancillary service in restructured environment is supplied by Independent System Operator (ISO). Due to the particular importance of optimal pricing strategy in the power market, the study aims to investigate this problem more closely. To this end, first the problems of restructuring, reactive power generation and its associated costs thereof were reviewed and diff...
متن کاملCost-Effectiveness of Rural Incentive Packages for Graduating Medical Students in Lao PDR
Background The dearth of health workers in rural settings in Lao People’s Democratic Republic (PDR) and other developing countries limits healthcare access and outcomes. In evaluating non-wage financial incentive packages as a potential policy option to attract health workers to rural settings, understanding the expected costs and effects of the various programs ex antecan assist policy-makers ...
متن کامل