A Strategy for Real Options from Multi-objective Optimal Design

Abstract

Optimal design of water distribution networks is influenced by uncertainties about budget, requirements, leakages, etc. Therefore, the design flexibility is of technical interest, i.e. the need to provide solutions to water managers which are definitively flexible real options allowing to implement optimal phasing of interventions. We here present a strategy which is based on the multi-objective optimal design and post-processing of Paretian solutions in order to obtain real options, i.e. a phasing of interventions. Pressure-driven analysis is performed in order to account for background leakages and predict the system capacity. The strategy is discussed using pipes sizing of Apulian network.