A software cost model with warranty and risk costs

TLDR

The paper develops a cost model incorporating warranty, error removal time, and risk costs, and examines optimal release policies to minimize expected total software cost. The model employs a non‑homogeneous Poisson process reliability framework and is implemented in an Excel/Visual Basic tool to compute optimal release times. Numerical examples demonstrate the model’s application and illustrate the resulting cost savings.

Abstract

In this paper, a cost model with warranty cost, time to remove each error detected in the software system, and risk cost due to software failure is developed. A software reliability model based on non-homogeneous Poisson process is used. The optimal release policies to minimize the expected total software cost are discussed. A software tool is also developed using Excel and Visual Basic to facilitate the task of determining the optimal software release time. Numerical examples are provided to illustrate the results.