A New Mathematical Approach based on Conic Quadratic Programming for the Stochastic Time-Cost Tradeoff Problem in Project Management

Peyghami, M. Reza; Aghaie, Abdollah; Mokhtari, Hadi

Volume 24, Issue 3 (IJIEPR 2013) IJIEPR 2013, 24(3): 177-187 | Back to browse issues page

Mendeley

Zotero

RefWorks

Peyghami M R, Aghaie A, Mokhtari H. A New Mathematical Approach based on Conic Quadratic Programming for the Stochastic Time-Cost Tradeoff Problem in Project Management. IJIEPR 2013; 24 (3) :177-187
URL: http://ijiepr.iust.ac.ir/article-1-401-en.html

A New Mathematical Approach based on Conic Quadratic Programming for the Stochastic Time-Cost Tradeoff Problem in Project Management

M. Reza Peyghami¹

, Abdollah Aghaie

¹, Hadi Mokhtari¹

Abstract: (50151 Views)

In this paper, we consider a stochastic Time-Cost Tradeoff Problem (TCTP) in PERT networks for project management, in which all activities are subjected to a linear cost function and assumed to be exponentially distributed. The aim of this problem is to maximize the project completion probability with a pre-known deadline to a predefined probability such that the required additional cost is minimized. A single path TCTP is constructed as an optimization problem with decision variables of activity mean durations. We then reformulate the single path TCTP as a cone quadratic program in order to apply polynomial time interior point methods to solve the reformulation. Finally, we develop an iterative algorithm based on Monte Carlo simulation technique and conic optimization to solve general TCTP. The proposed approach has been tested on some randomly generated test problems. The results illustrate the good performance of our new approach.

Keywords: Project Management, Conic Optimization, Time-Cost Tradeoff Problem, Interior Point Methods, Monte Carlo Simulation

Full-Text [PDF 645 kb] (2637 Downloads)

Type of Study: Research | Subject: Project Control
Received: 2012/02/18 | Accepted: 2013/09/28 | Published: 2013/09/28