In Japan most of the water distribution networks were constructed during the 1960s to 1970s. Since these pipelines were used for a long period, pipeline rehabilitation is necessary to maintain water supply. Although investment for pipeline rehabilitation has to be planned in terms of cost-effectiveness, no standard method has been established because pipelines were replaced on emergency and ad hoc basis in the past. In this paper, a method to determine the maintenance of the water supply on an optimal basis with a fixed budget for a water distribution network is proposed. Firstly, a method to quantify the benefits of pipeline rehabilitation is examined. Secondly, two models using Integer Programming and Monte Carlo simulation to maximize the benefits of pipeline rehabilitation with limited budget were considered, and they are applied to a model case and a case study. Based on these studies, it is concluded that the Monte Carlo simulation model to calculate the appropriate investment for the pipeline rehabilitation planning is both convenient and practical.

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