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Performance of the heuristic procedures for constrained projects with progress payments. (English) Zbl 0894.90082

Summary: All large scale resource constrained projects involve cash flows occurring during their life cycle. Several recent studies consider the problem of scheduling projects to maximize the net present value (NPV) of these cash flows. Their basic common assumption is that cash flows are mainly associated with specific events and they occur at event realization times. An alternative assumption, which can be more realistic, is that cash inflows occur periodically, for example every month, as progress payments. This article considers the problem of maximizing NPV given the alternative assumption. Three different heuristic rules are developed. The performance of these heuristic rules is analyzed through, a full factorial experiment with 108 scheduling conditions. The results indicate that three rules provide near-optimal schedules with respect to NPV maximization while producing time schedules that do not delay the project completion time extensively.

MSC:

90B35 Deterministic scheduling theory in operations research
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