Multi-mode project payment scheduling problems with bonus-penalty structure
This paper involves the multi-mode project payment scheduling problem with bonus-penalty structure where activities can be performed with several modes and a bonus-penalty structure exists at the deadline of the project. In the problem the decisions on when to schedule events and payments, the magnitude of each payment, and the performing mode of each activity need to be optimized. A two-module simulated annealing heuristic is proposed to solve the mixed integer non-linear programming models for the contractor and the client, and a satisfactory solution, which consists of payment event set, event schedule, and payment amount set, may be found through iterations between the heuristic's two modules. The profits of the two parties of the contract are changed significantly by the bonus-penalty structure and the structure may be considered as a coordination mechanism essentially, which may enhance the flexibility of payment scheduling and be helpful for the two parties to get more profits from the project. Through solving and analyzing an instance the insight that the bonus-penalty structure may advance the project completion effectively and improve the profits of the two parties in the meantime can be obtained.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ulusoy, Gunduz & Cebelli, Serkan, 2000. "An equitable approach to the payment scheduling problem in project management," European Journal of Operational Research, Elsevier, vol. 127(2), pages 262-278, December.
- Nalini Dayanand & Rema Padman, 2001. "Project Contracts and Payment Schedules: The Client's Problem," Management Science, INFORMS, vol. 47(12), pages 1654-1667, December.
- Herroelen, Willy S. & Van Dommelen, Patrick & Demeulemeester, Erik L., 1997. "Project network models with discounted cash flows a guided tour through recent developments," European Journal of Operational Research, Elsevier, vol. 100(1), pages 97-121, July.
- Mario Vanhoucke & Erik Demeulemeester & Willy Herroelen, 2001. "On Maximizing the Net Present Value of a Project Under Renewable Resource Constraints," Management Science, INFORMS, vol. 47(8), pages 1113-1121, August.
- A. H. Russell, 1970. "Cash Flows in Networks," Management Science, INFORMS, vol. 16(5), pages 357-373, January.
- Kolisch, Rainer & Padman, R., 2001. "An integrated survey of deterministic project scheduling," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 8114, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
- A. Kimms, 2001. "Maximizing the Net Present Value of a Project Under Resource Constraints Using a Lagrangian Relaxation Based Heuristic with Tight Upper Bounds," Annals of Operations Research, Springer, vol. 102(1), pages 221-236, February.
- 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.
- Elmaghraby, Salah E. & Herroelen, Willy S., 1990. "The scheduling of activities to maximize the net present value of projects," European Journal of Operational Research, Elsevier, vol. 49(1), pages 35-49, November.
- Nalini Dayanand & Rema Padman, 2001. "A Two Stage Search Heuristic for Scheduling Payments in Projects," Annals of Operations Research, Springer, vol. 102(1), pages 197-220, February.
- Vanhoucke, Mario & Demeulemeester, Erik & Herroelen, Willy, 2003. "Progress payments in project scheduling problems," European Journal of Operational Research, Elsevier, vol. 148(3), pages 604-620, August.
- Kolisch, R. & Padman, R., 2001. "An integrated survey of deterministic project scheduling," Omega, Elsevier, vol. 29(3), pages 249-272, June.
When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:189:y:2008:i:3:p:1191-1207. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.