COST OPTIMIZATION OF MULTIPLE RESOURCES ALLOCATION FOR MULTI-PROJECTS

Abstract

As the construction industry grows year by year, optimization of resources is becoming essential to reduce their required number, their costs and as a consequence the total cost of the project. Project managers have to face problems regarding management of cost, time, and available resources for single projects. What is more challenging is to optimize the available resources for multiple projects, which would result in appreciable savings. Most of the companies in the construction industry commonly optimize the resources for single project. However, with the presence of several mega projects in many developing countries running at the same time, there is a need for a model to enhance the efficiency of available resources among multiple simultaneous projects. This paper discusses a numerical model of cost optimization and allocation of up to nine resources for up to three projects for a given company, taking into consideration the transportation of resources from one project to another and the cost of unused resources. The model was developed using a genetic algorithm, and it is used on the identified critical resources. It calculates the cost of each resource, minimizes the cost of extra resources, cost of unused resources, and generates the schedule of each project within a selected overall program.