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An efficient search procedure for the resource-constrained multi-project scheduling problem with discounted cash flows

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  • Huan Neng Chiu
  • Deng Maw Tsai

Abstract

The main purposes of this study are to incorporate both the project delay penalty and early completion bonus into the objective function of the resource-constrained multi-project scheduling problem with discounted cash flows (RCMPSP-DCF) and to develop an efficient heuristic search scheduling rule. The effectiveness of the proposed heuristic rule is evaluated by comparing it with the optimal solution obtained by the optimal model for 42 small-scale problems. The result indicates that the solution obtained using the proposed heuristic rule is very close to the optimal solution, and that the proposed heuristic rule provides significant savings in computation time. Moreover, the proposed heuristic rule is also compared with four existing heuristic rules based on an experiment involving the single-project and multi-project scheduling problems. The results indicate that the proposed heuristic rule is superior to the four existing rules under the performance criteria of the average total project net present value and the average total project delay. In addition, the number of times that the proposed heuristic rule can obtain the best solution is also far more than that of any other rule considered in this paper under the two aforementioned performance criteria. Furthermore, this study has found that the performance of a heuristic scheduling rule is significantly affected by the number of projects. A rule that can lower the total project delay to the minimum is also able to maxi5 mize the total project net present value.

Suggested Citation

  • Huan Neng Chiu & Deng Maw Tsai, 2002. "An efficient search procedure for the resource-constrained multi-project scheduling problem with discounted cash flows," Construction Management and Economics, Taylor & Francis Journals, vol. 20(1), pages 55-66.
    • Handle: RePEc:taf:conmgt:v:20:y:2002:i:1:p:55-66
    DOI: 10.1080/01446190110089718
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    1. Mahir Msawil & Faris Elghaish & Krisanthi Seneviratne & Stephen McIlwaine, 2021. "Developing a Parametric Cash Flow Forecasting Model for Complex Infrastructure Projects: A Comparative Study," Sustainability, MDPI, vol. 13(20), pages 1-26, October.
    2. Bogumiła Krzeszowska, 2013. "Three step procedure for a multiple criteria problem of project portfolio scheduling," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 23(4), pages 55-74.
    3. Luise-Sophie Hoffmann & Carolin Kellenbrink & Stefan Helber, 2020. "Simultaneous structuring and scheduling of multiple projects with flexible project structures," Journal of Business Economics, Springer, vol. 90(5), pages 679-711, June.
    4. Shu-Shun Liu & Chang-Jung Wang, 2009. "Two-stage profit optimization model for linear scheduling problems considering cash flow," Construction Management and Economics, Taylor & Francis Journals, vol. 27(11), pages 1023-1037.
    5. Yuvraj Gajpal & Ashraf Elazouni, 2015. "Enhanced heuristic for finance-based scheduling of construction projects," Construction Management and Economics, Taylor & Francis Journals, vol. 33(7), pages 531-553, July.
    6. Ashraf Elazouni, 2009. "Heuristic method for multi-project finance-based scheduling," Construction Management and Economics, Taylor & Francis Journals, vol. 27(2), pages 199-211.
    7. 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).
    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. Gómez Sánchez, Mariam & Lalla-Ruiz, Eduardo & Fernández Gil, Alejandro & Castro, Carlos & Voß, Stefan, 2023. "Resource-constrained multi-project scheduling problem: A survey," European Journal of Operational Research, Elsevier, vol. 309(3), pages 958-976.
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    11. Rob Eynde & Mario Vanhoucke, 2020. "Resource-constrained multi-project scheduling: benchmark datasets and decoupled scheduling," Journal of Scheduling, Springer, vol. 23(3), pages 301-325, June.

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