Using Real Options in the Optimal Design of Water Distribution Networks

Bibliographic Details
Main Author: Marques, João
Publication Date: 2015
Other Authors: Cunha, Maria, Savić, Dragan
Format: Article
Language: eng
Source: Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
Download full: https://hdl.handle.net/10316/46562
https://doi.org/10.1061/(ASCE)WR.1943-5452.0000448
Summary: The authors acknowledge the publisher in granting permission for making post-print version available in open access institutional repository
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oai_identifier_str oai:estudogeral.uc.pt:10316/46562
network_acronym_str RCAP
network_name_str Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
repository_id_str https://opendoar.ac.uk/repository/7160
spelling Using Real Options in the Optimal Design of Water Distribution Networkswater distribution networksreal optionssimulated annealingflexible designUncertaintyThe authors acknowledge the publisher in granting permission for making post-print version available in open access institutional repositoryWater supply systems have to satisfy water needs in terms of quantity and quality. The constant changes in urban areas require the regular adaptation of the water supply infrastructure to meet new circumstances. However, decisions to design and operate water networks have to be taken under uncertainty. Flexibility is thus the key to more robust and confident decisions. An approach called real options (ROs) can be used in these situations. This approach makes it possible to use adaptive strategies in the decision process. Some decisions can be delayed pending future conditions. Water distribution systems are very costly and complex infrastructures. Once built, their operating structure cannot be changed significantly. This work presents an innovative ROs approach to define an objective function to cope with some future scenarios in a specific case study. The objective of our proposed model is to find a minimum cost solution for the first period of a planning horizon, while considering various possible future conditions that the network could have to cope with. The results of this work show that building flexibility into the decision strategy makes it possible to take an adaptive approach that can avert future lack of network capacity. In the case study, an adaptive design of the network incurs an extra initial cost, but this cost can easily be lower than the cost of reinforcing the network in a longer planning horizon. The real value of ROs is their ability to adapt systems to different possible future scenarios.American Society of Civil Engineers (ASCE)2015-02info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articlehttps://hdl.handle.net/10316/46562https://hdl.handle.net/10316/46562https://doi.org/10.1061/(ASCE)WR.1943-5452.0000448eng0733-9496https://ascelibrary.org/doi/abs/10.1061/%28ASCE%29WR.1943-5452.0000448Marques, JoãoCunha, MariaSavić, Draganinfo:eu-repo/semantics/openAccessreponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiainstacron:RCAAP2020-05-25T11:42:31Zoai:estudogeral.uc.pt:10316/46562Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireinfo@rcaap.ptopendoar:https://opendoar.ac.uk/repository/71602025-05-29T05:17:49.461789Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiafalse
dc.title.none.fl_str_mv Using Real Options in the Optimal Design of Water Distribution Networks
title Using Real Options in the Optimal Design of Water Distribution Networks
spellingShingle Using Real Options in the Optimal Design of Water Distribution Networks
Marques, João
water distribution networks
real options
simulated annealing
flexible design
Uncertainty
title_short Using Real Options in the Optimal Design of Water Distribution Networks
title_full Using Real Options in the Optimal Design of Water Distribution Networks
title_fullStr Using Real Options in the Optimal Design of Water Distribution Networks
title_full_unstemmed Using Real Options in the Optimal Design of Water Distribution Networks
title_sort Using Real Options in the Optimal Design of Water Distribution Networks
author Marques, João
author_facet Marques, João
Cunha, Maria
Savić, Dragan
author_role author
author2 Cunha, Maria
Savić, Dragan
author2_role author
author
dc.contributor.author.fl_str_mv Marques, João
Cunha, Maria
Savić, Dragan
dc.subject.por.fl_str_mv water distribution networks
real options
simulated annealing
flexible design
Uncertainty
topic water distribution networks
real options
simulated annealing
flexible design
Uncertainty
description The authors acknowledge the publisher in granting permission for making post-print version available in open access institutional repository
publishDate 2015
dc.date.none.fl_str_mv 2015-02
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://hdl.handle.net/10316/46562
https://hdl.handle.net/10316/46562
https://doi.org/10.1061/(ASCE)WR.1943-5452.0000448
url https://hdl.handle.net/10316/46562
https://doi.org/10.1061/(ASCE)WR.1943-5452.0000448
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 0733-9496
https://ascelibrary.org/doi/abs/10.1061/%28ASCE%29WR.1943-5452.0000448
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.publisher.none.fl_str_mv American Society of Civil Engineers (ASCE)
publisher.none.fl_str_mv American Society of Civil Engineers (ASCE)
dc.source.none.fl_str_mv reponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
instacron:RCAAP
instname_str FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
instacron_str RCAAP
institution RCAAP
reponame_str Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
collection Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
repository.name.fl_str_mv Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
repository.mail.fl_str_mv info@rcaap.pt
_version_ 1833602311770865664

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