Article ID: | iaor2017521 |
Volume: | 46 |
Issue: | 6 |
Start Page Number: | 522 |
End Page Number: | 532 |
Publication Date: | Dec 2016 |
Journal: | Interfaces |
Authors: | So Kut C, Wu Edward |
Keywords: | statistics: sampling, inspection, combinatorial optimization, scheduling, decision, simulation |
This paper summarizes the results of the development and implementation of a decision model for a major California utility company. The company’s program managers use the model to select the most cost‐effective sampling inspection plan for managing a portfolio of energy‐efficiency programs. The decision model can be used to evaluate the performance of possible sampling strategies based on historical data. We illustrate the application of our decision model to a specific program. We further highlight several key implementation success factors and discuss the benefits that the utility company accrued from using the decision model.