Optimal Inspection and Repair Policies for Infrastructure Facilities

State-of-the-art decision-making models in the area of infrastructure maintenance and rehabilitation (which are based on the Markov Decision Process) do not take into account the uncertainty in the measurement of facility condition. This paper presents a methodology, the Latent Markov Decision Process (LMDP), which explicitly recognizes the presence of random errors in the measurement of the condition of infrastructure facilities. Two versions of the LMDP are presented. In the first version, the inspection schedule is fixed, which is the usual assumption made in state-of-the-art models. The second version of the LMDP minimizes the sum of inspection and M & R costs. An empirical comparison of the two versions of the LMDP and the traditional MDP illustrates the importance of incorporating measurement uncertainty in decision-making and of optimizing the inspection schedule.