Total Costs and Risks

TCR is the most effective criterium to analyze investment variants and optimization calculus. This quantifies all costs and all risks arising form the use of each solution in its entire useful life. The risks are expressed as the cost of the damage arising from a certain unwanted event multiplied by the probability of that event.

The TCR criterium applies to non-linear multidisciplinary optimization in simulated environments,as an alternative to the classical objective functions with constraints or with Lagrange multipliers

For a better illustration we recommend the HVAC Case Study from the "Business Administration Book" (pages 111-115).