Abstract
A heuristic solution procedure is developed for capacity expansion problems encountered in water resources development. The heuristic solution procedure consists of two steps. In the first step, project sequence is generated and capacity refinement is done in the second step. A shortest path dynamic programming solution scheme is used as a “return function” for the sequence generation step, and a univariate direct search algorithm is used for capacity refinement. The proposed solution procedure is tested for both capacitated and uncapacitated example problems with a finite planning horizon. The results indicate that the proposed heuristic solution procedure is superior to other solution procedures selected for comparison in finding an optimum expansion policy consisting of a sequence of project developments, investment timing, and sizing for each project.
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