Integrated time–cost tradeoff and resources leveling problems with allowed activity splitting

Abstract

AbstractResource leveling and time–cost tradeoff are among the most challenging optimization problems in project management. These two problems are usually addressed separately because each problem optimizes different objective functions. In this paper, we develop an integrated model that addresses both problems when activities are allowed to split for better utilization of resources. The formulated mixed integer linear program (MILP) model considers the tradeoff between the crashing‐dependent costs; direct and indirect costs, and resource utilization related costs; acquiring, releasing, and splitting costs. The model can be used as a decision tool to determine whether crashing is recommended when decision makers are also concerned with the better utilization of project's resources. A one‐way sensitivity analysis was conducted to assess total cost savings achieved through the integration of time–cost tradeoff and resource leveling problems. Another experimental study was undertaken to evaluate the performance of the MILP runtime.