New computational results on the discrete time/cost trade-off problem in project networks

Abstract

A description is given of a new exact procedure for the discrete time/cost trade-off problem in deterministic activity-on-the-arc networks of the CPM type, where the duration of each activity is a discrete, nonincreasing function of the amount of a single resource (money) committed to it. The objective is to construct the complete and efficient time/cost profile over the set of feasible project durations. The procedure uses a horizon-varying approach based on the iterative optimal solution of the problem of minimizing the sum of the resource use over all activities subject to the activity precedence constraints and a project deadline. The optimal solution is derived using a branch-and-bound procedure.