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Sequencing Expansion Projects

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  • Donald Erlenkotter

    (University of California, Los Angeles, California)

Abstract

This paper examines the problem of finding the sequencing of a finite set of expansion projects that meets a deterministic demand projection at minimum discounted cost. For the particular situation defined, the tuning for a next expansion may be determined directly from knowledge of projected demand and present capacity. A dynamic programming formulation for sequencing projects is developed, and solution of an example problem demonstrates that other methods proposed for this problem are not, in general, valid. Extensions of the dynamic programming formulation to include interdependence between projects and joint selection of project scale and sequencing are indicated, and conditions for decomposition or direct solution of the sequencing problem are derived.

Suggested Citation

  • Donald Erlenkotter, 1973. "Sequencing Expansion Projects," Operations Research, INFORMS, vol. 21(2), pages 542-553, April.
  • Handle: RePEc:inm:oropre:v:21:y:1973:i:2:p:542-553
    DOI: 10.1287/opre.21.2.542
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    Cited by:

    1. Martin Sola & Marzia Raybaudi & Shasikanta Nandeibam, 2002. "On The Optimal Timing of Introduction of New Products," Department of Economics Working Papers 023, Universidad Torcuato Di Tella.
    2. Frederick Chou & Hao-Chih Lee & William Yeh, 2013. "Effectiveness and Efficiency of Scheduling Regional Water Resources Projects," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(3), pages 665-693, February.

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