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A statistical reliability approach to linear programming

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Summary

The implications of the probabilistic interpretation of a linear programming system in terms of the statistical theory of reliability are here analyzed. The concept of reliability, its relation to the presence of excess resources or organizational slack and to the age distribution of specific resources like capital with a specific depletion function is explored from an economic viewpoint. Possible uses of this reliability approach for economic models of resource allocation are also indicated, particularly for the case when the optimal durability of fixed resources is to be determined.

Zusammenfassung

In dieser Arbeit werden die Implikationen der stochastischen Interpretation eines LP-Problems mit Hilfe der statistischen Zuverlässigkeitstheorie untersucht. Der Begriff der Zuverlässigkeit, seine Beziehung zu dem Vorhandensein von Überschußressourcen oder organisatorischem Schlupf und zum altersmäßigen Aufbau spezifischer Ressourcen, z. B. Kapital, mit einer speziellen Abbau-Funktion werden unter ökonomischen Gesichtspunkten geprüft. Auch Anwendungsmöglichkeiten dieses Zuverlässigkeitsverfahrens für ökonomische Verteilungs-Modelle werden angegeben, insbesondere für den Fall, in dem die optimale Dauerhaftigkeit fixer Ressourcen bestimmt werden soll.

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Authors and Affiliations

  1. Iowa State University, 50010, Ames, Iowa

    J. K. Sengupta

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  1. J. K. Sengupta
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Additional information

Work done under the National Science Foundation Project GS 1810/420-41-17 at the Department of Economics, Iowa State University. This work develops the theoretical ideas originally formulated in the following two papers by this author:

1. Safety-first rules under chance-constrained linear programming Journal of the Operations Research Society of America, vol. 17, 1969, pp. 112–132.

2. A system reliability approach to linear programming. (Accepted for publication in „Unternehmensforschung“.)

Vorgel. v.:W. Wittmann

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Sengupta, J.K. A statistical reliability approach to linear programming. Unternehmensforschung Operations Research 15, 255–278 (1971). https://doi.org/10.1007/BF01939834

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  • DOI: https://doi.org/10.1007/BF01939834

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