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A genetic algorithm to investigate the trade-off between project lead time and net present value

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Author Info
M. VANHOUCKE ()
Abstract

In this paper, we present a new genetic algorithm for the resource-constrained project scheduling problem with discounted cash flows and investigate the trade-off between a project’s net present value and its corresponding lead time. We consider a problem formulation where the pre-specified project deadline is not set as a hard constraint, but rather as a soft constraint that can be violated against a certain penalty cost. The genetic algorithm creates children from parents taken from three different populations, each containing relevant information about the (positive or negative) activity cash flows. We have tested various parent selection methods based on four crossover operators taken from literature and present extensive computational results.

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Paper provided by Ghent University, Faculty of Economics and Business Administration in its series Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium with number 07/456.

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Length: 20 pages
Date of creation: Mar 2007
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Handle: RePEc:rug:rugwps:07/456

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Keywords: Resource-constrained project scheduling net present value genetic algorithm

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  1. Li, K. Y. & Willis, R. J., 1992. "An iterative scheduling technique for resource-constrained project scheduling," European Journal of Operational Research, Elsevier, vol. 56(3), pages 370-379, February. [Downloadable!] (restricted)
  2. Brucker, Peter & Drexl, Andreas & Mohring, Rolf & Neumann, Klaus & Pesch, Erwin, 1999. "Resource-constrained project scheduling: Notation, classification, models, and methods," European Journal of Operational Research, Elsevier, vol. 112(1), pages 3-41, January. [Downloadable!] (restricted)
  3. M. Vanhoucke, 2006. "A scatter search procedure for maximizing the net present value of a project under renewable resource constraints," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 06/417, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
  4. Valls, Vicente & Quintanilla, Sacramento & Ballestin, Francisco, 2003. "Resource-constrained project scheduling: A critical activity reordering heuristic," European Journal of Operational Research, Elsevier, vol. 149(2), pages 282-301, September. [Downloadable!] (restricted)
  5. Kolisch, Rainer, 1996. "Serial and parallel resource-constrained project scheduling methods revisited: Theory and computation," European Journal of Operational Research, Elsevier, vol. 90(2), pages 320-333, April. [Downloadable!] (restricted)
  6. Vanhoucke, M., 2006. "A scatter search procedure for maximizing the net present value of a project under renewable resource constraints," Vlerick Leuven Gent Management School Working Paper Series 2006-40, Vlerick Leuven Gent Management School. [Downloadable!]
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