The scheduling of activities to maximize the net present value of projects

Elmaghraby, Salah E.; Herroelen, Willy

doi:10.1016/0377-2217(90)90118-u

Cited by 105 publications

(59 citation statements)

References 9 publications

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“…maximizing the net present value of the corresponding (time-feasible, but not necessarily resource-feasible) project without taking the resource constraints into account. Algorithms for the payment scheduling problem can be found in Russell (1970, Grinold (1972, Elmaghraby and Herroelen (1990), Herroelen and Gallens (1993) and Herroelen et al (1996). Naturally, these algorithms need to be extended to cope with generalized precedence relations.…”

Section: Nonregular Measures Of Performancementioning

confidence: 99%

A branch-and-bound procedure for the resource-constrained project scheduling problem with generalized precedence relations

Reyck

Herroelen

1998

European Journal of Operational Research

126

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We present an optimal procedure for the resource-constrained project scheduling problem (RCPSP) with generalized precedence relations (further denoted as RCPSP-GPR) with the objective of minimizing the project makespan. The RCPSP-GPR extends the RCPSP to arbitrary minimal and maximal time lags between the starting and completion times of activities. The procedure is a depth-first branch-and-bound algorithm in which the nodes in the search tree represent the original project network extended with extra precedence relations which resolve a resource conflict present in the parent node. Resource conflicts are resolved using the concept of minimal delaying alternatives, i.e. minimal sets of activities which, when delayed, release enough resources to resolve the conflict. Precedence-and resource-based lower bounds as well as dominance rules are used to fathom large portions of the search tree. The procedure can be extended to other regular measures of performance by some minor modifications. Even nonregular measures of performance, such as the maximization of the net present value of the project or resource levelling objectives, can be handled. The procedure has been programmed in Microsoft® Visual C++ for use on a personal computer. Extensive computational experience is obtained.

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Section: Nonregular Measures Of Performancementioning

confidence: 99%

A branch-and-bound procedure for the resource-constrained project scheduling problem with generalized precedence relations

Reyck

Herroelen

1998

European Journal of Operational Research

126

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“…When maximizing the project npv, the evaluation and optimization of the project networks in each node should be accomplished by maximizing the npv of the corresponding (precedence-feasible, but not necessarily resourcefeasible) project without taking the resource constraints into account (gpr,on,ciinpv). Algorithms for the unconstrained max-npv project scheduling problem (cpm,on,cilnpv) can be found in Russell (1970), Grinold (1972), Elmaghraby and Herroelen (1990), Herroelen and Gallens (1993) and Herroelen et al (1996). Unfortunately, none of these algorithms can cope with GPRs (gpr, Pi,oi,cilnpv).…”

Section: Nonregular Performance Measuresmentioning

confidence: 99%

Algorithms for Scheduling Projects with Generalized Precedence Relations

Reyck

Demeulemeester

Herroelen

1999

International Series in Operations Research &Amp; Management Science

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Project scheduling under the assumption of renewable resource constraints and generalized precedence relations, i.e. arbitrary minimal and maximal time lags between the starting and completion times of the activities of the project, constitutes an important and challenging problem. Over the past few years considerable progress has been made in the use of exact solution procedures for this problem type and its variants. We review the fundamental logic and report new computational experience with a branch-and-bound procedure for optimally solving resourceconstrained project scheduling problems with generalized precedence relations of the precedence diagramming type, i.e. start-start, start-finish, finish-start and finish-finish relations with minimal time lags for minimizing the project makespan. Subsequently, we review and report new results for several branch-and-bound procedures for the case of generalized precedence relations, including both minimal and maximal time lags, and demonstrate how the solution methodology can be extended to cope with other regular and nonregular objective functions such as maximizing the net present value of a project.

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“…To the best of our knowledge, this is the first paper to consider maximizing projects' EPV with stochastic activity durations. Some of the researchers on the deterministic problem have focused on maximizing net present value (NPV) without resource or capital constraints, including Russell (1970), Grinold (1972), Elmaghraby and Herroelen (1990), and Rosenblatt and Roll (1986). Others have incorporated resource and/or capital constraints into their model.…”

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confidence: 99%

Activity Delay in Stochastic Project Networks

Buss

Rosenblatt

1997

Operations Research

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In this paper we deal with a stochastic project network and consider the impact of activity delay to maximize the expected present value of a project. It is shown that in certain situations, delaying the onset of an activity from its earliest start time can indeed increase the present value of a project due to the postponing of associated negative cash flows. Furthermore, a project that could otherwise be rejected (negative expected present value) may become profitable (positive expected present value) due to delay. We demonstrate that even activities on the critical path, as determined by each activity's expected duration, may be profitably delayed. Optimal and approximate procedures are developed to determine the amount of delay of the various activities.

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The scheduling of activities to maximize the net present value of projects

Cited by 105 publications

References 9 publications

A branch-and-bound procedure for the resource-constrained project scheduling problem with generalized precedence relations

A branch-and-bound procedure for the resource-constrained project scheduling problem with generalized precedence relations

Algorithms for Scheduling Projects with Generalized Precedence Relations

Activity Delay in Stochastic Project Networks

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