You have been requested by the South African Department of Transport to find the

Question

You have been requested by the South African Department of Transport to find the optimal (least cost) maintenance policy for a 20 km long, 4 m wide rural road that carries very heavy traffic due to mining activities. Inspections are carried out once a year and the state of the road is classified as very good, moderately deteriorated or severely deteriorated. The possible actions of the maintenance policy are to do nothing, to carry out routine maintenance or to The transitions among the three states of the road have been found to be a Markov chain with the transition probabilities given in Table 1 for the three possible actions of the policy resurface the road. Table 1 Transition matrices for three possible actions of the maintenance policy State at beginning of following year Very gooddeteriorated deteriorated 0.5 0.5 DO NOTHING Moderately Severely Very good 0 0.5 deteriorated State at ROUTINE MAINE ery sood deteriorated deterlorated Moderately Severely Very good 0.8 0.2 0.8 0.2 deteriorated State at of RESURFACING Moderately Severely Very good deteriorated deteriorated 0 0.2 Very good Moderately 0.6 deteriorated For the three possible states of the road, the costs per square metre of road of maintenance and of resurfacing are given in Table 2 below carrying out routine

Explanation / Answer

Answer:

Since doing nothing can't be an answer for any problem, the best part to do is to "resurfacing". Even though resurfacing attracts more cost, considering the duration of 1 year for the road to be in good condition for taking the traffic due to mining activity that have abrasion.

The additional information that could be included to improve the determination of the optimal policy is ,

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