A bidirectional heuristic for maximizing the net present value of large‐scale projects subject to limited resources

Selle, Thomas; Zimmermann, Jürgen

doi:10.1002/nav.10052

Cited by 16 publications

(15 citation statements)

References 37 publications

(44 reference statements)

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“…For the problem of maximising net discounted cash flows, procedures are used combining techniques of generating both backward and forward scheduling (bidirectional schedule generation scheme [15]): the activities to which net aggregate inflows are ascribed are scheduled as soon as possible, while the activities to which net aggregate outflows are ascribed are scheduled as late as possible.…”

Section: Methods For Solving the Problemmentioning

confidence: 99%

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Financial optimisation of the scheduling for the multi-stage project

Klimek¹,

Łebkowski

2017

Bulletin of the Polish Academy of Sciences Technical Sciences

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Abstract. The paper analyses the problem of discounted cash flow maximising for the resource-constrained project scheduling from the project contractor's perspective. Financial optimisation for the multi-stage project is considered. Cash outflows are the contactor's expenses related to activity execution. Cash inflows are the client's payments for the completed milestones. To solve the problem, the procedure of backward scheduling taking into account contractual milestones is proposed. The effectiveness of this procedure, as used to generate solutions for the simulated annealing algorithm, is verified with use of standard test instances with additionally defined cash flows and contractual milestones.

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Section: Methods For Solving the Problemmentioning

confidence: 99%

“…First research papers covering NPV optimisation did not take into consideration project resource constraints [4][5]. Currently, the research focuses on the RCPSP-DC problem [6][7][8][9][10][11][12][13][14][15][16][17][18][19][20]. For a review of models and algorithms including cash flow optimisation, we refer the reader to [1][2][3]21].…”

Section: Introductionmentioning

confidence: 99%

Financial optimisation of the scheduling for the multi-stage project

Klimek¹,

Łebkowski

2017

Bulletin of the Polish Academy of Sciences Technical Sciences

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“…The generation scheme is based on an approach of Ballestín et al (2007), Selle and Zimmermann (2003), Zimmermann (1997) that has been devised in order to solve project scheduling problems with non-regular objective functions. The basic idea of this approach is to schedule the individual activities successively such that the respective increase in the objective function value of the extended partial solution is minimal.…”

Section: A Priority-rule Based Approachmentioning

confidence: 99%

Robust Optimization for the Discrete Time-Cost Tradeoff Problem with Cost Uncertainty

Hazır

Haouari

Erel

2014

Handbook on Project Management and Scheduling Vol. 2

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This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. Exempted from this legal reservation are brief excerpts in connection with reviews or scholarly analysis or material supplied specifically for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work. Duplication of this publication or parts thereof is permitted only under the provisions of the Copyright Law of the Publisher's location, in its current version, and permission for use must always be obtained from Springer. Permissions for use may be obtained through RightsLink at the Copyright Clearance Center. Violations are liable to prosecution under the respective Copyright Law. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. While the advice and information in this book are believed to be true and accurate at the date of publication, neither the authors nor the editors nor the publisher can accept any legal responsibility for any errors or omissions that may be made. The publisher makes no warranty, express or implied, with respect to the material contained herein.Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com) PrefaceThis handbook is devoted to scientific approaches to the management and scheduling of projects. Due to their practical relevance, project management and scheduling have been important subjects of inquiry since the early days of Management Science and Operations Research and remain an active and vibrant field of study. The handbook is meant to provide an overview of some of the most active current areas of research. Each chapter has been written by well-recognized scholars, who have made original contributions to their topic. The handbook covers both theoretical concepts and a wide range of applications. For our general readers, we give a brief introduction to elements of project management and scheduling in the first chapter, where we also survey the contents of this book. We believe that the handbook will be a valuable and comprehensive reference to researchers and practitioners in project management and scheduling and hope that it might stimulate further research in this exciting and practically important field.Short-listing and selecting the contributions to this handbook and working with more than one hundred authors have been a challenging and rewarding experience for us. We are grateful to Günter Sch...

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“…Current research on project scheduling with NPV maximisation has not covered the so defined a problem. The problems covered rather include the assignment of cash outflows and/or inflows to individual activities (Baroum & Patterson, 1996;Icmeli & Erenguc, 1996;Pinder & Marucheck, 1996;Mika et al, 2005;Selle & Zimmermann, 2003;Ulusoy &Özdamar, 1995;Vanhoucke et al, 2001;Vanhoucke, 2006). For such problems, algorithms are sought for that would maximise the project's NPV by scheduling activities, with cash inflows as soon as possible, and those with cash outflows as late as possible.…”

Section: Two-phase Algorithm Of Project's Npv Maximisationmentioning

confidence: 99%

A Two-Phase Algorithm for a Resource Constrained Project Scheduling Problem with Discounted Cash Flows

Klimek

Łebkowski

2013

DMMS

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Abstract. This paper presents a Resource-Constrained Project Scheduling Problem (RCPSP) settled by contractual milestones. The criterion analysed here is the maximisation of aggregate discounted cash flows from the contractor's perspective, known as an RCPSP problem with Discounted Cash Flows (RCPSPDCF). The cash flows analysed here cover the contractor's cash outflows (negative cash flows), related to the commencement of individual activities, and cash inflows (positive cash flows) after the fulfilment of individual milestones. The authors propose a two-phase algorithm for solving the problem defined. In the first phase, the simulated annealing metaheuristics is used, designed to identify a forward schedule with as high total DCF as possible. In the second phase, the best first-phase schedule is improved by right shifts of activities. To this end, the procedure which iteratively shifts tasks by one unit is applied, with a view to maximising the objective function. Activity shifts take into consideration precedence and resource constraints, and they are performed for a specified resource allocation to activities. This paper also includes an analysis of the problem for a sample project. The results of computational experiments are then analysed. The experiments were run with the use of standard test problems from the Project Scheduling Problem LIBrary (PSPLIB), with additionally defined cash flows and contractual milestones.

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A bidirectional heuristic for maximizing the net present value of large‐scale projects subject to limited resources

Cited by 16 publications

References 37 publications

Financial optimisation of the scheduling for the multi-stage project

Financial optimisation of the scheduling for the multi-stage project

Robust Optimization for the Discrete Time-Cost Tradeoff Problem with Cost Uncertainty

A Two-Phase Algorithm for a Resource Constrained Project Scheduling Problem with Discounted Cash Flows

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