Utility-based Resource Allocation Under Uncertainty

Abstract

Due to the COVID-19 pandemic, societies have recently become aware that all decision-making processes are made under huge uncertainty. Since the worldwide situation cannot be compared to any other in the past, it is hard to apply any of the typical descriptions of uncertainty based on historical data. In this paper, the authors try to show how to use expert knowledge of the unknown values of systems parameters to optimise their operation through appropriate allocation of resources and also consider the systems that may be modelled by using the utility theory. Production plants and computer networks are examples of such systems. The authors have modelled the uncertainty with the formalism of uncertain variables and proposed a new approach to the problem of optimising resources with uncertain parameters. A method to solve such a defined problem is also discussed.