A branch and bound algorithm for project scheduling problem with discounted cash flows

Date

2016-12-01

Author

COMERT, ALİCAN
Azizoğlu, Meral

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In this study, we consider a project payment model with discounted cash flows. We assume that the client payment times are defined in the project contract. The activities are characterised by their processing times and costs that are incurred at their completion times. Our problem is to find the activity completion times so as to maximise the net present value of the client payments and activity costs. We show that the problem is strongly NP-hard. We formulate the problem as a mixed integer nonlinear programming model and propose a branch and bound algorithm that employs efficient lower and upper bounding mechanism

Subject Keywords

MNLIP, Mixed integer nonlinear programming, Activity costs, Client payments, NPV, Net present value, Activity completion times, Project payment models, Branch and bound algorithm,, DCF, Discounted cash flow, Project scheduling

URI

https://hdl.handle.net/11511/37499

Journal

International Journal of Planning and Scheduling

DOI

https://doi.org/10.1504/ijps.2016.080344

Collections

Department of Industrial Engineering, Article

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Citation Formats

A. COMERT and M. Azizoğlu, “A branch and bound algorithm for project scheduling problem with discounted cash flows,” International Journal of Planning and Scheduling, pp. 233–251, 2016, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/37499.