Convergence of stochastic optimization and decision analysis in the engineering design of aquifer remediation
This paper compares and contrasts stochastic optimization and decision analysis as frameworks for the design of remedial pump-and-treat systems in contaminated aquifers. Both decision-making frameworks (1) seek a least-cost, low-risk remedial design; (2) consider uncertainty due to partial knowledge of field environments, which causes imperfect predictive capability of simulation; (3) target predictive uncertainty due to spatially variable hydraulic conductivities and handle it by involving geostatistical uncertainty theory, and (4) deal with the design and economic impacts of uncertainty by employing the concept of reliability o its complement the probability of failure. The fundamental difference between the two approaches lies in the fact that decision analysis considers a broad suite of technological strategies from which one of many predetermined design alternatives is selected as the best, while stochastic optimization determines the optimal pump-and-treat design but considers only one technological strategy at a time. The early stochastic optimization formulations sought to quantify the cost of overdesign needed to achieve greater performance reliability. The procedure involved a cost minimization that led to the development of a trade-off curve of cost versus reliability. For each point on the trade-off curve a single-valued optimum was achieved by defining a present level of desired reliability. Decision analysis has always involved a cost-risk minimization, in which a single-valued optimum is obtained by simultaneously accounting for all costs, including the risk costs associated with the probability of failure. Risk costs are assigned a dollar value based on the level of expected reliability; a trade-off curve is not needed. More-recent formulations using stochastic optimization follow the philosophy of the decision-analysis framework by accounting for risk costs through a penalty cost. Using the latter approach, the authors show that the objective functions in both frameworks are virtually identical.
- Research Organization:
- R. Allan Freeze Engineering Inc., White Rock, British Columbia (CA)
- OSTI ID:
- 20005468
- Journal Information:
- Ground Water, Journal Name: Ground Water Journal Issue: 6 Vol. 37; ISSN GRWAAP; ISSN 0017-467X
- Country of Publication:
- United States
- Language:
- English
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