Network reliability with failures at nodes and arcs in terms of minimal cuts

This paper deals with a stochastic-flow network in which each node and arc has a designated capacity, which will have different lower levels due to various partial and complete failures. We try to evaluate the system reliability that the maximum flow of the network is not less than a demand (d + 1). A simple algorithm in terms of minimal cuts is first proposed to generate all upper boundary points for d, and then the system reliability can be calculated in terms of such points. The upper boundary point for d is a maximal vector, which represents the capacity of each component (arc or node), such that the maximum flow of the network is d. A computer example is shown to illustrate the solution procedure.