TECHNIQUES OF GENERATING SCHEDULES FOR THE PROBLEM OF FINANCIAL OPTIMIZATION OF MULTI-STAGE PROJECT

Marcin KLIMEK

doi:10.23743/acs-2019-02

TECHNIQUES OF GENERATING SCHEDULES FOR THE PROBLEM OF FINANCIAL OPTIMIZATION OF MULTI-STAGE PROJECT

Article Sidebar

Open full text

pdf

Published: Mar 30, 2019

DOI: https://doi.org/10.23743/acs-2019-02

Main Article Content

DOI

https://doi.org/10.23743/acs-2019-02

Authors

Marcin KLIMEK

m.klimek@dydaktyka.pswbp.pl

State School of Higher Education, Department of Computer Science, Sidorska 95–97, 21-500 Biala Podlaska

Abstract

The article presents the problem of scheduling a resource-constrained project with discounted cash flow maximization from the perspective of a contractor. The contractor's expenses (cash outflows for the contractor) are associated with the execution of activities. The client's payments (cash inflows for the contractor) are performed after fulfilling the agreed project stages. The following techniques are suggested for solving the problem: the activity right-shift procedure, the backward scheduling with the optimization of completion dates for the agreed project stages and the modified triple justification technique. The effect of these techniques of generating schedules is illustrated for an exemplary project. Finally, an experimental analysis of the proposed procedures is presented.

Keywords:

resource-constrained project scheduling problem, discounted cash flows, payment project scheduling, multi-stage project, milestones

References

Artigues, C., Michelon, P., & Reusser, S. (2003). Insertion techniques for static and dynamic resourceconstrained project. European Journal of Operational Research, 149(2), 249–267. https://doi.org/10.1016/S0377-2217(02)00758-0 DOI: https://doi.org/10.1016/S0377-2217(02)00758-0

Bahrami, F., & Moslehi, G. (2013). Study of payment scheduling problem to achieve clientcontractor agreement International. Journal of Advanced Manufacturing Technology, 64(1), 497–511. https://doi.org/10.1007/s00170-012-4023-5 DOI: https://doi.org/10.1007/s00170-012-4023-5

Dayanand, N., & Padman, R. (1997). On modelling payments in projects. Journal of the Operational Research Society, 48(9), 906-918. https://doi.org/10.1057/palgrave.jors.2600440 DOI: https://doi.org/10.1057/palgrave.jors.2600440

Dayanand, N., & Padman, R. (2001). Project contracts and payment schedules: The client’s problem. Management Science, 47(12), 1654-1667. https://doi.org/10.1287/mnsc.47.12.1654.10242 DOI: https://doi.org/10.1287/mnsc.47.12.1654.10242

Deblaere, F., Demeulemeester, E., Herroelen, W., & Van De Vonder, S. (2006). Proactive resource allocation heuristics for robust project scheduling. Research report KBI_0608, K.U. Leuven. https://doi.org/10.2139/ssrn.870228 DOI: https://doi.org/10.2139/ssrn.870228

Hartmann, S., & Briskorn, D. (2012). A Survey of Variants and Extensions of the ResourceConstrained Project Scheduling Problem. European Journal of Operational Research, 207(1), 1–14. https://doi.org/10.1016/j.ejor.2009.11.005 DOI: https://doi.org/10.1016/j.ejor.2009.11.005

He, Z., Liu, R., & Jia, T. (2012). Metaheuristics for multi-mode capital-constrained project payment scheduling. European Journal of Operational Research, 223(3), 605–613. https://doi.org/10.1016/j.ejor.2012.07.014 DOI: https://doi.org/10.1016/j.ejor.2012.07.014

He, Z., Wang, N., Jia, T., & Xu, Y. (2009). Simulated annealing and tabu search for multimode project payment scheduling. European Journal of Operational Research, 198(3), 688–696. https://doi.org/10.1016/j.ejor.2008.10.005 DOI: https://doi.org/10.1016/j.ejor.2008.10.005

He, Z., & Xu, Y. (2008). Multi-mode project payment scheduling problems with bonus penalty structure. European Journal of Operational Research, 189(3), 1191–1207. https://doi.org/10.1016/j.ejor.2006.07.053 DOI: https://doi.org/10.1016/j.ejor.2006.07.053

Herroelen, W., Reyck, B. D., & Demeulemeester, E. (1997). Project network models with discounted cash flows: A guided tour through recent developments. European Journal of Operational Research, 100(1), 97–121. https://doi.org/10.1016/S0377-2217(96)00112-9 DOI: https://doi.org/10.1016/S0377-2217(96)00112-9

Klimek, M. (2017). Priority algorithms for the problem of financial optimisation of a multi stage project. Applied Computer Science, 13(4), 20–34. https://doi.org/10.23743/acs-2017-26

Klimek, M., & Łebkowski, P. (2011). Resource allocation for robust project scheduling. Bulletin of the Polish Academy of Sciences: Technical Sciences, 59(1), 51–55. https://doi.org/10.2478/v10175-011-0008-z DOI: https://doi.org/10.2478/v10175-011-0008-z

Klimek, M., & Łebkowski, P. (2013). Robustness of schedules for project scheduling problem with cash flow optimization. Bulletin of the Polish Academy of Sciences: Technical Sciences, 61(4), 1005–1015. https://doi.org/10.2478/bpasts-2013-0108 DOI: https://doi.org/10.2478/bpasts-2013-0108

Klimek, M., & Łebkowski, P. (2015). Heuristics for project scheduling with discounted cash flows optimization. Bulletin of the Polish Academy of Sciences: Technical Sciences, 63(3), 613–622. https://doi.org/10.1515/bpasts-2015-0072 DOI: https://doi.org/10.1515/bpasts-2015-0072

Klimek, M., & Łebkowski, P. (2017). Financial optimisation of the scheduling for the multi-stage project. Bulletin of the Polish Academy of Sciences: Technical Sciences, 65(6), 899–908. https://doi.org/10.1515/bpasts-2017-0097 DOI: https://doi.org/10.1515/bpasts-2017-0097

Kolisch, R. (1996). Serial and parallel resource-constrained project scheduling methods revisited: Theory and computation. European Journal of Operational Research, 90(2), 320–333. https://doi.org/10.1016/0377-2217(95)00357-6 DOI: https://doi.org/10.1016/0377-2217(95)00357-6

Kolisch, R., & Sprecher, A. (1997). PSPLIB - a project scheduling library. European Journal of Operational Research, 96(1), 205–216. https://doi.org/10.1016/S0377-2217(96)00170-1 DOI: https://doi.org/10.1016/S0377-2217(96)00170-1

Leus, R., & Herroelen, W. (2004). Stability and resource allocation in project planning. IIE Transaction, 36(7), 667–682. https://doi.org/10.1080/07408170490447348 DOI: https://doi.org/10.1080/07408170490447348

Leyman, P., & Vanhoucke, M. (2016). Payment models and net present value optimization for resource-constrained project scheduling. Computers & Industrial Engineering, 91, 139–153. https://doi.org/10.1016/j.cie.2015.11.008 DOI: https://doi.org/10.1016/j.cie.2015.11.008

Leyman, P., & Vanhoucke, M. (2017). Capital- and resource-constrained project scheduling with net present value optimization. European Journal of Operational Research, 256(3), 757–776. https://doi.org/10.1016/j.ejor.2016.07.019 DOI: https://doi.org/10.1016/j.ejor.2016.07.019

Mika, M., Waligóra, G., & Węglarz, J. (2005). Simulated annealing and tabu search for multimode resource-constrained project scheduling with positive discounted cash flows and different payment models. European Journal of Operational Research, 164(3), 639–668. https://doi.org/10.1016/j.ejor.2003.10.053 DOI: https://doi.org/10.1016/j.ejor.2003.10.053

Russell, A. H. (1970). Cash flows in networks. Management Science, 16(5), 357–373. https://doi.org/10.1287/mnsc.16.5.357 DOI: https://doi.org/10.1287/mnsc.16.5.357

Selle, T., & Zimmermann, J. (2003). A bidirectional heuristic for maximizing the net present value of large-scale projects subject to limited resources. Naval Research Logistics, 50(2), 130-148. https://doi.org/10.1002/nav.10052 DOI: https://doi.org/10.1002/nav.10052

Smith-Daniels, D. E., Padman, R., & Smith-Daniels, V. L. (1996). Heuristic scheduling of capital constrained projects. Journal of Operations Management, 14(3), 241–254. https://doi.org/10.1016/0272-6963(96)00004-6 DOI: https://doi.org/10.1016/0272-6963(96)00004-6

Ulusoy, G., & Cebelli, S. (2000). An equitable approach to the payment scheduling problem in project management. European Journal of Operational Research, 127(2), 262–278. https://doi.org/10.1016/S0377-2217(99)00499-3 DOI: https://doi.org/10.1016/S0377-2217(99)00499-3

Ulusoy, G., Sivrikaya-Serifoglu F., & Sahin, S. (2001). Four Payment Models for the Multi-Mode Resource Constrained Project Scheduling Problem with Discounted Cash Flows. Annals of Operations Research, 102, 237-261. https://doi.org/10.1023/A:1010914417817 DOI: https://doi.org/10.1023/A:1010914417817

Valls, V., Ballestin, F., & Quintanilla, S. (2005). Justification and RCPSP: a technique that pays. European Journal of Operational Research, 165(2), 375–386. https://doi.org/10.1016/j.ejor.2004.04.008 DOI: https://doi.org/10.1016/j.ejor.2004.04.008

Vanhoucke, M., Demeulemeester, E., & Herroelen, W. (2003). Progress payments in project scheduling problems. European Journal of Operational Research, 148(3), 604–620. https://doi.org/10.1016/S0377-2217(02)00452-6 DOI: https://doi.org/10.1016/S0377-2217(02)00452-6

Vanhoucke, M., Demeulemeester, E., & Herroelen, W. (2001). Maximizing the net present value of a project with linear time-dependent cash flows. International Journal of Production Research, 39(14), 3159-3181. https://doi.org/10.1080/00207540110056919 DOI: https://doi.org/10.1080/00207540110056919

Article Details

KLIMEK, M. (2019). TECHNIQUES OF GENERATING SCHEDULES FOR THE PROBLEM OF FINANCIAL OPTIMIZATION OF MULTI-STAGE PROJECT. Applied Computer Science, 15(1), 18–35. https://doi.org/10.23743/acs-2019-02

ACM
ACS
APA
ABNT
Chicago
Harvard
IEEE
MLA
Turabian
Vancouver

Endnote/Zotero/Mendeley (RIS)
BibTeX

Abstract views: 258

License

This work is licensed under a Creative Commons Attribution 4.0 International License.

All articles published in Applied Computer Science are open-access and distributed under the terms of the Creative Commons Attribution 4.0 International License.