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Combining a Multiattribute Value Function with an Optimization Model: An Application to Dynamic Resource Allocation for Infrastructure Maintenance

Author

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  • Pekka Mild

    (Systems Analysis Laboratory, Helsinki University of Technology, 02015 TKK, Finland; and Pöyry Infra Ltd., 01621 Vantaa, Finland)

  • Ahti Salo

    (Systems Analysis Laboratory, Helsinki University of Technology, 02015 TKK, Finland)

Abstract

A key decision in infrastructure management is the allocation of resources to maintenance activities that consist of periodic rehabilitation actions and routine day-to-day operations. These activities improve the quality of different assets and operations. They also differ in terms of their objectives, costs, and life-cycle characteristics; yet they all impact the same infrastructure system and compete for resources from the same budget. To support the allocation of resources to these activities, we present a generic resource allocation model that we developed for the Finnish Road Administration (Finnra) by building and interlinking (i) a preference model , which yields the aggregate value of maintenance activities by applying multiattribute value functions to the quality distributions of assets; (ii) a life-cycle model , which captures the deterioration-improvement dynamics associated with the maintenance activities; and (iii) an optimization model , which generates funding recommendations for maximizing the aggregate long-term value of maintenance investments. The optimization results were explored in facilitated workshops where “on-the-fly” computations gave senior managers insights into how the recommendations depended on preferences and budget levels. The case study was awarded for an outstanding achievement in Finnra's research program, and it was also recognized as a Finalist for the Decision Analysis Society Practice Award in 2007.

Suggested Citation

  • Pekka Mild & Ahti Salo, 2009. "Combining a Multiattribute Value Function with an Optimization Model: An Application to Dynamic Resource Allocation for Infrastructure Maintenance," Decision Analysis, INFORMS, vol. 6(3), pages 139-152, September.
    • Handle: RePEc:inm:ordeca:v:6:y:2009:i:3:p:139-152
    DOI: 10.1287/deca.1090.0143
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    References listed on IDEAS

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    Cited by:

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    3. Senay Solak & Armagan Bayram & Mehmet Gumus & Yueran Zhuo, 2019. "Technical Note—Optimizing Foreclosed Housing Acquisitions in Societal Response to Foreclosures," Operations Research, INFORMS, vol. 67(4), pages 950-964, July.
    4. Dias, Luis & Leitão, Armando & Guimarães, Luis, 2021. "Resource definition and allocation for a multi-asset portfolio with heterogeneous degradation," Reliability Engineering and System Safety, Elsevier, vol. 213(C).
    5. Talebiyan, Hesam & Dueñas-Osorio, Leonardo, 2023. "Auctions for resource allocation and decentralized restoration of interdependent networks," Reliability Engineering and System Safety, Elsevier, vol. 237(C).
    6. Petchrompo, Sanyapong & Parlikad, Ajith Kumar, 2019. "A review of asset management literature on multi-asset systems," Reliability Engineering and System Safety, Elsevier, vol. 181(C), pages 181-201.
    7. Mancuso, A. & Compare, M. & Salo, A. & Zio, E. & Laakso, T., 2016. "Risk-based optimization of pipe inspections in large underground networks with imprecise information," Reliability Engineering and System Safety, Elsevier, vol. 152(C), pages 228-238.
    8. Morton, Alec, 2015. "Measurement issues in the evaluation of projects in a project portfolio," European Journal of Operational Research, Elsevier, vol. 245(3), pages 789-796.
    9. Punkka, Antti & Salo, Ahti, 2013. "Preference Programming with incomplete ordinal information," European Journal of Operational Research, Elsevier, vol. 231(1), pages 141-150.
    10. Liesiö, Juuso & Salo, Ahti & Keisler, Jeffrey M. & Morton, Alec, 2021. "Portfolio decision analysis: Recent developments and future prospects," European Journal of Operational Research, Elsevier, vol. 293(3), pages 811-825.
    11. Olde Keizer, Minou C.A. & Flapper, Simme Douwe P. & Teunter, Ruud H., 2017. "Condition-based maintenance policies for systems with multiple dependent components: A review," European Journal of Operational Research, Elsevier, vol. 261(2), pages 405-420.
    12. Dilaver, Halit Metehan & Akçay, Alp & van Houtum, Geert-Jan, 2023. "Integrated planning of asset-use and dry-docking for a fleet of maritime assets," International Journal of Production Economics, Elsevier, vol. 256(C).

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