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Two-stage profit optimization model for linear scheduling problems considering cash flow

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  • Shu-Shun Liu
  • Chang-Jung Wang

Abstract

Linear projects with repetitive activity in units are considered for investigation, and a two-stage profit optimization model for linear scheduling problems using constraint programming (CP) is proposed. To maintain work continuity for repetitive activities, interruption time and crew availability are addressed, and the optimization process is presented as follows: (1) optimizing the primary objective (project profit); (2) minimizing total interruption time, given the optimized value of the primary objective. Repetitive activities incur batches of budget expenditure according to activity implementation time. Cash flow and financial elements are therefore integrated into the optimization model. Owing to flexible CP techniques, contractors' requirements, such as credit limit and payment conditions, can be integrated simply into the model formulation for practical use. Lastly, a bridge example is adopted, with various constraints such as duration limitation, for scenario analysis. Consequently, the two-stage optimization process optimizes project profit, and also maximizes work continuity for linear scheduling problems.

Suggested Citation

  • Shu-Shun Liu & Chang-Jung Wang, 2009. "Two-stage profit optimization model for linear scheduling problems considering cash flow," Construction Management and Economics, Taylor & Francis Journals, vol. 27(11), pages 1023-1037.
    • Handle: RePEc:taf:conmgt:v:27:y:2009:i:11:p:1023-1037
    DOI: 10.1080/01446190903233111
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    References listed on IDEAS

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    1. Huan Neng Chiu & Deng Maw Tsai, 2002. "An efficient search procedure for the resource-constrained multi-project scheduling problem with discounted cash flows," Construction Management and Economics, Taylor & Francis Journals, vol. 20(1), pages 55-66.
    2. A. H. Boussabaine & Taha Elhag, 1999. "Applying fuzzy techniques to cash flow analysis," Construction Management and Economics, Taylor & Francis Journals, vol. 17(6), pages 745-755.
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    Cited by:

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    2. Qiushi Chen & Lei Zhao & Jan C. Fransoo & Zhe Li, 2019. "Dual-mode inventory management under a chance credit constraint," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 41(1), pages 147-178, March.

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