Collaborative Optimization of Cost and Risk for Industrial Equipment Maintenance Projects Based on DRO-CVaR

Aiming at the poor robustness of maintenance schemes in industrial equipment maintenance projects, which arises from uncertain factors including fault degree, maintenance time, and resource availability, this paper proposes a synergistic cost-risk optimization method that integrates Distributionally Robust Optimization (DRO) and Conditional Value-at-Risk (CVaR). First, the paper analyzes the uncertainty characteristics of such projects and constructs a distribution ambiguity set based on the Wasserstein distance to depict unknown probability distributions. Second, a two-stage DRO-CVaR optimization model is established: the first stage formulates a pre-optimization scheme to minimize maintenance costs, and the second stage introduces CVaR for extreme risk measurement, thus achieving optimal decision-making under the worst-case scenario. Finally, a nested Column-and-Constraint Generation (C&CG) algorithm is designed to solve the proposed model. A numerical example is conducted for verification, and results show that compared with traditional stochastic programming and pure DRO methods, the proposed method reduces the total cost by 10.4%, the worst-case scenario loss by 28.9%, and the CVaR value by 32.0%. It thus exhibits superior economic efficiency and risk resistance in uncertain environments.

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Publication Details

Journal
Mathematical and Computational Applications
Published
2026-03-15
DOI
https://doi.org/10.3390/mca31020048
Primary Topic
Reliability and Maintenance Optimization
Type
article
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article

Collaborative Optimization of Cost and Risk for Industrial Equipment Maintenance Projects Based on DRO-CVaR

Xiaohang Wan
Mathematical and Computational Applications
Reliability and Maintenance Optimization
article

Collaborative Optimization of Cost and Risk for Industrial Equipment Maintenance Projects Based on DRO-CVaR

Xiaohang Wan
article en

Abstract

Aiming at the poor robustness of maintenance schemes in industrial equipment maintenance projects, which arises from uncertain factors including fault degree, maintenance time, and resource availability, this paper proposes a synergistic cost-risk optimization method that integrates Distributionally Robust Optimization (DRO) and Conditional Value-at-Risk (CVaR). First, the paper analyzes the uncertainty characteristics of such projects and constructs a distribution ambiguity set based on the Wasserstein distance to depict unknown probability distributions. Second, a two-stage DRO-CVaR optimization model is established: the first stage formulates a pre-optimization scheme to minimize maintenance costs, and the second stage introduces CVaR for extreme risk measurement, thus achieving optimal decision-making under the worst-case scenario. Finally, a nested Column-and-Constraint Generation (C&CG) algorithm is designed to solve the proposed model. A numerical example is conducted for verification, and results show that compared with traditional stochastic programming and pure DRO methods, the proposed method reduces the total cost by 10.4%, the worst-case scenario loss by 28.9%, and the CVaR value by 32.0%. It thus exhibits superior economic efficiency and risk resistance in uncertain environments.

Mathematical and Computational ApplicationsVol. 31(2)
The University of Sydney (AU)
Decent work and economic growth
Openalex Percentile: Top 20%
Reliability and Maintenance Optimization
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