Abstract
In a given project network, execution of each activity in normal duration requires utilization of certain resources. If faster execution of an activity is desired then additional resources at extra cost would be required. Given a project network, the cost structure for each activity and a planning horizon, the project compression problem is concerned with the determination of optimal schedule (duration) of performing each activity while satisfying given restrictions and minimizing the total cost of project execution. This paper considers the project compression problem with time dependent cost structure for each activity. The planning horizon is divided into several regular time intervals over which the cost structure of an activity may vary. But the cost structure of the activities remains the same (constant) within a time interval. Key events of the project attract penalty for finishing earlier or later than the corresponding target times. The objective is to find an optimal project schedule minimizing the total project cost. We present a mathematical model for this problem, develop some heuristics and an exact branch and bound algorithm. Using simulated problems we provide an insight into the computational performances of heuristics and the branch and bound algorithm.
Similar content being viewed by others
References
N.R. Achuthan and A. Hardjawidjaja, Project crashing under time dependent costs, in: Proceedings of the 12th National Conference of ASOR, Adelaide (1993) pp. 163-176.
E. Demeulemeester, B. Dodin and W.S. Herroelen, A random activity network generator, Operations Research 41 (1993) 972–980.
S.E. Elmaghraby and W.S. Herroelen, The scheduling of activities to maximize the net present value of projects, European Journal of Operational Research 49 (1990) 35–49.
S.E. Elmaghraby and P.S. Pulat, Optimal project compression with due-date events, Naval Research Logistics Quarterly 26 (1979) 331–348.
S.S. Erenguc, S. Tufekci and C.J. Zappe, Solving time/cost trade-off problems with discounted cash flows using generalised benders decomposition, Naval Research Logistics Quarterly 40 (1993) 25–50.
A. Hardjawidjaja, Project scheduling methods, Ph.D. thesis, Curtin University of Technology, Perth, Western Australia (1995).
J.K. Jolayemi and A.E. Oluleye, Scheduling of projects under the condition of inflation, OMEGA 21 (1993) 481–487.
J.E. Kelly and M.R. Walker, Critical Path Planning and Scheduling: An Introduction (Mauchly, 1959).
G. Polla, Project scheduling under tardiness and earliness penalties, M.Sc. Thesis, Curtin University of Technology, Western Australia (1990).
A.H. Russell, Cash flows in networks, Management Science 16 (1970) 357–373.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Achuthan, N., Hardjawidjaja, A. Project Scheduling under Time Dependent Costs – A Branch and Bound Algorithm. Annals of Operations Research 108, 55–74 (2001). https://doi.org/10.1023/A:1016046625583
Issue Date:
DOI: https://doi.org/10.1023/A:1016046625583