Utilizing simulation to predict optimum number of projects

Abstract

Contractors strive to generate profit from utilizing the available resources. This paper introduces a hybrid model of Discrete Event and Monte Carlo Simulations using SIMPHONY Software to model the operational interdependencies of the construction projects at the work packages level using the common pool of resources. The developed model considers organizational financial and equipment resources to help contractors forecast the optimum number of projects to bid for at the planning phase. A case of Bid/No-Bid in building houses is used to validate the model. The main contribution is in the methodology of applying operational techniques in making strategic decisions.