IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v317y2022i2d10.1007_s10479-016-2122-7.html
   My bibliography  Save this article

Managing risk-adjusted resource allocation for project time-cost tradeoffs

Author

Listed:
  • Manuel A. Nunez

    (University of Connecticut)

  • Lynn Kuo

    (University of Connecticut)

  • I. Robert Chiang

    (Fordham University)

Abstract

In the traditional project crashing problem (also known as the time-cost tradeoff problem) associated with a project network, the decision variables are assumed to be continuous, representing the amount of reduction in the duration of the tasks in the project, and the objective is to find the least expensive set of time reductions (“crashing” times) to complete the project within a given time limit (to avoid penalties). We will study a variant of this problem with a combinatorial probabilistic version, where the objective is to find the set of “crashing” choices that minimizes the time reduction cost and the expected penalty risk from tardiness. We show this problem is NP-hard, so we propose efficient heuristics that can provide approximate solutions to this problem. We also extend this problem so that resource assignments can be adjusted following project status reviews several times before reaching the project deadline.

Suggested Citation

  • Manuel A. Nunez & Lynn Kuo & I. Robert Chiang, 2022. "Managing risk-adjusted resource allocation for project time-cost tradeoffs," Annals of Operations Research, Springer, vol. 317(2), pages 717-735, October.
    • Handle: RePEc:spr:annopr:v:317:y:2022:i:2:d:10.1007_s10479-016-2122-7
    DOI: 10.1007/s10479-016-2122-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10479-016-2122-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10479-016-2122-7?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.

    References listed on IDEAS

    as
    1. D. G. Malcolm & J. H. Roseboom & C. E. Clark & W. Fazar, 1959. "Application of a Technique for Research and Development Program Evaluation," Operations Research, INFORMS, vol. 7(5), pages 646-669, October.
    2. D. R. Fulkerson, 1961. "A Network Flow Computation for Project Cost Curves," Management Science, INFORMS, vol. 7(2), pages 167-178, January.
    3. Moustapha Diaby & Jose M. Cruz & Aaron L. Nsakanda, 2011. "Project crashing in the presence of general non-linear activity time reduction costs," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 12(3), pages 318-332.
    4. W. J. Gutjahr & C. Strauss & E. Wagner, 2000. "A Stochastic Branch-and-Bound Approach to Activity Crashing in Project Management," INFORMS Journal on Computing, INFORMS, vol. 12(2), pages 125-135, May.
    5. Joel Goh & Nicholas G. Hall, 2013. "Total Cost Control in Project Management via Satisficing," Management Science, INFORMS, vol. 59(6), pages 1354-1372, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Osama Mohamed ElSahly & Salma Ahmed & Akmal Abdelfatah, 2023. "Systematic Review of the Time-Cost Optimization Models in Construction Management," Sustainability, MDPI, vol. 15(6), pages 1-20, March.
    2. Bregman, Robert L., 2009. "A heuristic procedure for solving the dynamic probabilistic project expediting problem," European Journal of Operational Research, Elsevier, vol. 192(1), pages 125-137, January.
    3. V. Sireesha & N. Ravi Shankar, 2013. "A new approach to find project characteristics and multiple possible critical paths in a fuzzy project network," Fuzzy Information and Engineering, Springer, vol. 5(1), pages 69-85, March.
    4. Trietsch, Dan & Mazmanyan, Lilit & Gevorgyan, Lilit & Baker, Kenneth R., 2012. "Modeling activity times by the Parkinson distribution with a lognormal core: Theory and validation," European Journal of Operational Research, Elsevier, vol. 216(2), pages 386-396.
    5. Hajdu M. & Isaac S., 2016. "Sixty years of project planning: history and future," Organization, Technology and Management in Construction, Sciendo, vol. 8(1), pages 1499-1510, December.
    6. R L Bregman, 2009. "Preemptive expediting to improve project due date performance," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(1), pages 120-129, January.
    7. Joel Goh & Nicholas G. Hall, 2013. "Total Cost Control in Project Management via Satisficing," Management Science, INFORMS, vol. 59(6), pages 1354-1372, June.
    8. Byung-Cheon Choi & Changmuk Kang, 2019. "A linear time–cost tradeoff problem with multiple milestones under a comb graph," Journal of Combinatorial Optimization, Springer, vol. 38(2), pages 341-361, August.
    9. Kamburowski, J., 1997. "New validations of PERT times," Omega, Elsevier, vol. 25(3), pages 323-328, June.
    10. Xiong, Jian & Leus, Roel & Yang, Zhenyu & Abbass, Hussein A., 2016. "Evolutionary multi-objective resource allocation and scheduling in the Chinese navigation satellite system project," European Journal of Operational Research, Elsevier, vol. 251(2), pages 662-675.
    11. Nima Zoraghi & Aria Shahsavar & Babak Abbasi & Vincent Peteghem, 2017. "Multi-mode resource-constrained project scheduling problem with material ordering under bonus–penalty policies," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 25(1), pages 49-79, April.
    12. Pérez, José García & Martín, María del Mar López & García, Catalina García & Sánchez Granero, Miguel Ángel, 2016. "Project management under uncertainty beyond beta: The generalized bicubic distribution," Operations Research Perspectives, Elsevier, vol. 3(C), pages 67-76.
    13. Chen, Shih-Pin & Tsai, Ming-Jiun, 2011. "Time-cost trade-off analysis of project networks in fuzzy environments," European Journal of Operational Research, Elsevier, vol. 212(2), pages 386-397, July.
    14. R A Bowman, 2007. "Efficient sensitivity analysis of PERT network performance measures to significant changes in activity time parameters," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(10), pages 1354-1360, October.
    15. Li, Haitao & Womer, Norman K., 2015. "Solving stochastic resource-constrained project scheduling problems by closed-loop approximate dynamic programming," European Journal of Operational Research, Elsevier, vol. 246(1), pages 20-33.
    16. Lau, Hon-Shiang & Hing-Ling Lau, Amy, 1996. "Estimating the demand distributions of single-period items having frequent stockouts," European Journal of Operational Research, Elsevier, vol. 92(2), pages 254-265, July.
    17. Catalina García & José Pérez & Salvador Rambaud, 2010. "Proposal of a new distribution in PERT methodology," Annals of Operations Research, Springer, vol. 181(1), pages 515-538, December.
    18. Antonio J. Conejo & Nicholas G. Hall & Daniel Zhuoyu Long & Runhao Zhang, 2021. "Robust Capacity Planning for Project Management," INFORMS Journal on Computing, INFORMS, vol. 33(4), pages 1533-1550, October.
    19. A B Hafızoğlu & M Azizoğlu, 2010. "Linear programming based approaches for the discrete time/cost trade-off problem in project networks," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(4), pages 676-685, April.
    20. Herroelen, Willy & Leus, Roel, 2004. "The construction of stable project baseline schedules," European Journal of Operational Research, Elsevier, vol. 156(3), pages 550-565, August.

    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:317:y:2022:i:2:d:10.1007_s10479-016-2122-7. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc 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 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.