Life-cycle cost analysis as a tool for decision making

Dimitry V Val, Mark G Stewart

    Research output: Chapter in Book/Report/Conference proceedingConference contribution

    Abstract

    Measures that improve durability of a structure usually increase its initial cost. Thus, in order to make a decision about a cost-effective solution life-cycle cost of a structure including cost of structural failure needs to be considered. Due to uncertainties associated with structural properties, loads and environmental conditions the cost of structural failure is a random variable. The paper derives probability distributions of the cost of failure of a single structure and a group of identical structures when single or multiple failures are possible during the service life of a structure. The probability distributions are based on cumulative probabilities of failure of a single structure over its service life. The probability distributions can be employed to evaluate the expected life-cycle cost or the expected utility, which is then used in decision making. An example, which considers the selection of durability specifications for a reinforced concrete structure built on the coast, illustrates the use of the derived probability distributions.

    Original languageEnglish
    Title of host publicationApplications of Statistics and Probability in Civil Engineering
    Subtitle of host publicationProceedings of the 9th International Conference on Applications of Statistics and Probability in Civil Engineering
    EditorsArmen Der Kiureghian, Samer Madanat, Juan Manuel Pestana-Nascimento
    Place of PublicationRotterdam
    PublisherMillpress
    Pages757-764
    Number of pages8
    ISBN (Print)9789059660045, 9789059660052
    Publication statusPublished - 2003
    Event9th International Conference on Applications of Statistics and Probability in Civil Engineering - San Francisco, United States
    Duration: 6 Jul 20039 Jul 2003

    Conference

    Conference9th International Conference on Applications of Statistics and Probability in Civil Engineering
    CountryUnited States
    CitySan Francisco
    Period6/07/039/07/03

    Keywords

    • design
    • utility
    • durability
    • life-cycle cost
    • decision making
    • uncertainty

    Cite this

    Val, D. V., & Stewart, M. G. (2003). Life-cycle cost analysis as a tool for decision making. In A. Der Kiureghian, S. Madanat, & J. M. Pestana-Nascimento (Eds.), Applications of Statistics and Probability in Civil Engineering: Proceedings of the 9th International Conference on Applications of Statistics and Probability in Civil Engineering (pp. 757-764). Millpress.