Financial Optimization of the Resource-Constrained Project Scheduling Problem with Milestones Payments

Abstract

This article presents the resource-constrained project scheduling problem with the discounted cash flow maximization criterion from the perspective of a contractor. Cash flows are considered as the contractor’s expenses related to the execution of activities and client’s payments (revenue to the contractor) after the completion of contractual stages. To solve the problem, dedicated techniques to generate solutions and a simulated annealing algorithm are proposed. Finally, the proposed procedures are examined using the test library, Project Scheduling Library (PSPLIB). An experimental analysis identified the efficient moves and techniques for creating solutions, that is backward scheduling with optimization of completion times of project stages and triple justification.

Keywords

• resource-constrained project scheduling problem
• discounted cash flow maximization
• milestones payments
• simulated annealing algorithm