A bi-objective optimization for finance-based and resource-constrained robust project scheduling

Abstract

Numerous finance-based projects encounter disturbances from a variety of uncertain factors during their execution, under which both the original baseline schedule and financing alternative become infeasible. However, many previous studies on the finance-based project scheduling problem (FBSP) neglected a potential feature of stochastic activity durations. In this paper, we address the issue of generating a robust project schedule that not only satisfies financing credit and renewable resource limits, but also tackles disruptions due to activity uncertainty. A bi-objective model for finance-based and resource-constrained robust project scheduling problem (FBRCRPSP) is constructed, where the trade-off between profit and robustness is considered. Based on the transformed integer programming model, an exact procedure of ε- constraints is proposed to obtain Pareto-optimal solutions for small-sized instances. For large-scale projects, a non-dominated sorting genetic algorithm with local search (NSGA-II-LS) that deeply explores the neighboring solution space is developed, in which a generic procedure with two new recursion policies is proposed to determine the robustness of schedules. Benchmarking is conducted to evaluate the efficiency of the algorithms via some performance criteria. The results show that all developed approaches have good performance in small-sized instances, and the NSGA-II-LS outperforms the non-dominated sorting genetic algorithm without local search (NSGA-II) in terms of the spread, convergence, and diversity of Pareto-optimal solutions significantly. In addition, some managerial insights are summarized to enlighten project managers.