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Abstract
This paper proposes a theory for the optimization of large scale engineering systems. This theory models the engineering system as a multi-level hierarchical system in which the structures are its subsystems at the lowest level. The decoupling method is used in the optimization process. The construction cost and loss expectation are the decoupling parameters. The reliability is the coordinating parameter. A procedure of up-and-down iterations of the decoupling and coordinating parameters between subsystems at different levels is suggested to optimize the engineering system globally. Also, an algorithm to calculate the optimal reliability for the engineering system is obtained when both its present and long term benefits are considered.