Optimal Release Time of Computer Software

A decision procedure to determine when computer software should be released is described. This procedure is based upon the cost-benefit for the entire company that has developed the software. This differs from the common practice of only minimizing the repair costs for the data processing division. Decision rules are given to determnine at what time the system should be released based upon the results of testing the software. Necessary and sufficient conditions are identified which determine when the system should be released (immediately, before the deadline, at the deadline, or after the deadline). No assumptions are made about the relationship between any of the model's parameters. The model can be used whether the software was developed by a first or second party. The case where future costs are discounted is also considered.