Abstract: In contrast to the traditional process of product development, Component-Based Development (CBD) focuses on building products by integrating previously-existing components. So to start with, an available set of components should be identified. In this paper, this major problem of component-based system development involves the effective evaluation and selection alternative system components is addressed by considered the cost and combinational risk factors. Based on a bi-objective 0-1 integer programming, an optimization model is proposed that can assist decision-makers in selecting system components for minimizing cost and combinational risk, and satisfying system requirements. The condition of application of the proposed model is further proposed based on the Maclaurin expansion with second order Lagrange remained term. To solve the model efficiently, a supported efficient solution based algorithm is presented that can find the entire set of efficient solutions. Computational experience also describes in solving the problems using the Metaheuristics and the proposed algorithm.

Key words: component selection, optimization model, multiple objective programming