Project time–cost trade-off scheduling: a hybrid optimization approach

Abstract

This paper develops a hybrid approach for stochastic time–cost trade-off problem (STCTP) in PERT networks of project management, where activities are subjected to linear cost functions. The main objective of proposed approach is to improve the project completion probability in a prespecified deadline from a risky value to a confident predefined probability. To this end, we construct a nonlinear mathematical program with decision variables of activity mean durations, in which the objective function is concerned with minimization of project crashing direct cost. In order to solve the constructed model, we present a hybrid approach based on cutting plane method and Monte Carlo (MC) simulation. To illustrate the process of proposed approach, the approach was coded using MATLAB 7.6.0 and two illustrative examples are discussed. The results obtained from the computational study show that the proposed algorithm is an effective approach for the STCTP.