A Monte-Carlo simulation approach for approximating multi-state two-terminal reliability

This paper describes a Monte-Carlo (MC) simulation methodology for estimating the reliability of a multi-state network. The problem under consideration involves multi-state two-terminal reliability (M2TR) computation. Previous approaches have relied on enumeration or on the computation of multi-state minimal cut vectors (MMCV) and the application of inclusion/exclusion formulae. This paper discusses issues related to the reliability calculation process based on MMCV. For large systems with even a relatively small number of component states, reliability computation can become prohibitive or inaccurate using current methods. The major focus of this paper is to present and compare a new MC simulation approach that obtains accurate approximations to the actual M2TR. The methodology uses MC to generate system state vectors. Once a vector is obtained, it is compared to the set of MMCV to determine whether the capacity of the vector satisfies the required demand. Examples are used to illustrate and validate the methodology. The estimates of the simulation approach are compared to exact and approximation procedures from solution quality and computational effort perspectives. Results obtained from the simulation approach show that for relatively large networks, the maximum absolute relative error between the simulation and the actual M2TR is less than 0.9%, yet when considering approximation formulae, this error can be as large as 18.97%. Finally, the paper discusses that the MC approach consistently yields accurate results while the accuracy of the bounding methodologies can be dependant on components that have considerable impact on the system design. (C) 2004 Elsevier Ltd. All rights reserved.