IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v102y2001i1p237-26110.1023-a1010914417817.html
   My bibliography  Save this article

Four Payment Models for the Multi-Mode Resource Constrained Project Scheduling Problem with Discounted Cash Flows

Author

Listed:
  • Gündüz Ulusoy
  • Funda Sivrikaya-Şerifoğlu
  • Şule Şahin

Abstract

In this paper, the multi-mode resource constrained project scheduling problem with discounted cash flows is considered. The objective is the maximization of the net present value of all cash flows. Time value of money is taken into consideration, and cash in- and out-flows are associated with activities and/or events. The resources can be of renewable, nonrenewable, and doubly constrained resource types. Four payment models are considered: lump sum payment at the terminal event, payments at prespecified event nodes, payments at prespecified time points and progress payments. For finding solutions to problems proposed, a genetic algorithm (GA) approach is employed, which uses a special crossover operator that can exploit the multi-component nature of the problem. The models are investigated at the hand of an example problem. Sensitivity analyses are performed over the mark up and the discount rate. A set of 93 problems from literature are solved under the four different payment models and resource type combinations with the GA approach employed resulting in satisfactory computation times. The GA approach is compared with a domain specific heuristic for the lump sum payment case with renewable resources and is shown to outperform it. Copyright Kluwer Academic Publishers 2001

Suggested Citation

  • Gündüz Ulusoy & Funda Sivrikaya-Şerifoğlu & Şule Şahin, 2001. "Four Payment Models for the Multi-Mode Resource Constrained Project Scheduling Problem with Discounted Cash Flows," Annals of Operations Research, Springer, vol. 102(1), pages 237-261, February.
    • Handle: RePEc:spr:annopr:v:102:y:2001:i:1:p:237-261:10.1023/a:1010914417817
    DOI: 10.1023/A:1010914417817
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1023/A:1010914417817
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1023/A:1010914417817?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Jingwen & Elmaghraby, Salah E., 2014. "The relevance of the “alphorn of uncertainty” to the financial management of projects under uncertainty," European Journal of Operational Research, Elsevier, vol. 238(1), pages 65-76.
    2. Grzegorz Waligóra, 2014. "Discrete-continuous project scheduling with discounted cash inflows and various payment models—a review of recent results," Annals of Operations Research, Springer, vol. 213(1), pages 319-340, February.
    3. Hartmann, Sönke & Briskorn, Dirk, 2008. "A survey of variants and extensions of the resource-constrained project scheduling problem," Working Paper Series 02/2008, Hamburg School of Business Administration (HSBA).
    4. Dayal Madhukar & Verma, Sanjay, 2015. "Multi-processor Exact Procedures for Regular Measures of the Multi-mode RCPSP," IIMA Working Papers WP2015-03-25, Indian Institute of Management Ahmedabad, Research and Publication Department.
    5. Grzegorz Waligóra, 2016. "Comparative Analysis of Some Metaheuristics for Discrete-Continuous Project Scheduling with Activities of Identical Processing Rates," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 33(03), pages 1-32, June.
    6. Abdollah Arasteh, 2020. "Considering Project Management Activities for Engineering Design Groups," SN Operations Research Forum, Springer, vol. 1(4), pages 1-29, December.
    7. Luis F. Machado-Domínguez & Carlos D. Paternina-Arboleda & Jorge I. Vélez & Agustín Barrios-Sarmiento, 2022. "An adaptative bacterial foraging optimization algorithm for solving the MRCPSP with discounted cash flows," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 30(2), pages 221-248, July.
    8. Hartmann, Sönke & Briskorn, Dirk, 2010. "A survey of variants and extensions of the resource-constrained project scheduling problem," European Journal of Operational Research, Elsevier, vol. 207(1), pages 1-14, November.
    9. Dayal Madhukar & Verma, Sanjay, 2014. "Breadth-first and Best-first Exact Procedures for Regular Measures of the Multi-mode RCPSP," IIMA Working Papers WP2014-10-04, Indian Institute of Management Ahmedabad, Research and Publication Department.
    10. He, Zhengwen & Liu, Renjing & Jia, Tao, 2012. "Metaheuristics for multi-mode capital-constrained project payment scheduling," European Journal of Operational Research, Elsevier, vol. 223(3), pages 605-613.
    11. Weglarz, Jan & Józefowska, Joanna & Mika, Marek & Waligóra, Grzegorz, 2011. "Project scheduling with finite or infinite number of activity processing modes - A survey," European Journal of Operational Research, Elsevier, vol. 208(3), pages 177-205, February.
    12. He, Zhengwen & Wang, Nengmin & Jia, Tao & Xu, Yu, 2009. "Simulated annealing and tabu search for multi-mode project payment scheduling," European Journal of Operational Research, Elsevier, vol. 198(3), pages 688-696, November.
    13. Dayal Madhukar & Verma, Sanjay, 2015. "Exact Procedures for Non-Regular Measures of the Multi-Mode RCPSP," IIMA Working Papers WP2015-03-06, Indian Institute of Management Ahmedabad, Research and Publication Department.
    14. Aidin Delgoshaei & Timon Rabczuk & Ahad Ali & Mohd Khairol Anuar Ariffin, 2017. "An applicable method for modifying over-allocated multi-mode resource constraint schedules in the presence of preemptive resources," Annals of Operations Research, Springer, vol. 259(1), pages 85-117, December.
    15. Chen, Jiaqiong & Askin, Ronald G., 2009. "Project selection, scheduling and resource allocation with time dependent returns," European Journal of Operational Research, Elsevier, vol. 193(1), pages 23-34, February.
    16. Mika, Marek & Waligora, Grzegorz & Weglarz, Jan, 2005. "Simulated annealing and tabu search for multi-mode resource-constrained project scheduling with positive discounted cash flows and different payment models," European Journal of Operational Research, Elsevier, vol. 164(3), pages 639-668, August.
    17. Nursel Kavlak & Gündüz Ulusoy & Funda Sivrikaya Şerifoğlu & Ş. İlker Birbil, 2009. "Client‐contractor bargaining on net present value in project scheduling with limited resources," Naval Research Logistics (NRL), John Wiley & Sons, vol. 56(2), pages 93-112, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:annopr:v:102:y:2001:i:1:p:237-261:10.1023/a:1010914417817. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.