In this article we compare combined stochastic risk processes and consider its applications to various fields of relevance. Initially, the problem is formulated in terms of optimal transportation under fatal risks which may cause the failure of the transportation. Various transportation policies are considered and the problem of determining optimal policy maximizing the probability of success of transportation is suggested. Then the suggested problem is reformulated in the context of reliability modelling under more general settings and the main results are derived. Applications of the results to many different areas are discussed.
Bibliographical noteFunding Information:
The author greatly thanks the referees for careful reading of the paper and helpful suggestions, which have improved the presentation of the paper. This work was supported by the National Research Foundation of Korea (NRF) grant funded by the Korea government (MEST) (No. 2011-0017338 ). This work was supported by Priority Research Centers Program through the National Research Foundation of Korea (NRF) funded by the Ministry of Education, Science and Technology ( 2009-0093827 ). The author would like to appreciate Mrs. Sul Ja Choi for helpful and pleasant discussions which were incorporated into a practical formulation of the problem considered in this paper.
- Applied probability
- Optimal transportation
- Policy ordering
- Shock model