(542d) New Sensor Network Design Formulation Maximizing Economic Value of Accuracy

The concept and efficient procedure to calculate economic value of accuracy in the form of downside financial loss have recently been presented (Bagajewicz, AIChE Journal, 2006). It has been argued recently (Bagajewicz, Chmielewski and Rengaswamy, Proceedings of Sensors Topical, AIChE Annual Conference, 2004) that the sensor network design problem can be best viewed as one where the difference between value of information and cost is maximized. In fact the economic value of accuracy, as it has been argued, encompasses all previous constraints that have been proposed for the Minimum Cost paradigm: Error detectability, precision, residual precision and resilience and translates them to economics. In this paper, we present the new paradigm for sensor network design using Maximum Economic Value as objective, which is now an unconstrained optimization problem. An alternative pareto-optimum formulation will also be discussed. An efficient procedure to solve this new sensor network design formulation is introduced and examples will be provided. Bagajewicz M. (2006) Value of Accuracy in Linear Systems. AIChE Journal. Vol 52, No 2., pp. 638-650 Bagajewicz, Miguel J.; Chmielewski, Donald; Rengaswamy, Raghunathan (2004) Integrated process sensor network design. AIChE Annual Meeting, Conference Proceedings