Solution procedure for generalized resource investment problem with discounted cash flows and progress payment

Authors

1 Faculty of Industrial and Mechanical Engineering, Qazvin Branch, Islamic Azad ‎University, Qazvin, Iran

2 Faculty of Industrial and Mechanical Engineering, Qazvin Branch, Islamic Azad ‎University, Qazvin, Iran‎

3 Industrial Engineering Department, Faculty of Engineering, Bu-Ali Sina University, ‎Hamedan, Iran‎

Abstract

In this paper, we study the resource investment problem (RIP) in which the availability levels of the resources are considered as decision variables. The objective is to maximize the net present value of a project by a given project deadline subject to progress payments. The project has activities interrelated by generalized precedence relations (GPR’s), which require a set of renewable resources. A non-linear mixed integer programming formulation is proposed for the problem. The problem formed in this way is an NP-hard one leading us to use modified version of SA (MSA) algorithm in order to obtain a satisfying solution based on hybridizing it with a local search procedure. In order to improve the MSA, Taguchi technique executed to tune its parameters.Moreover, genetic algorithm (GA) is also applied to validate the performance of the proposed algorithm. Finally, for examining the algorithms performance, the relative percent deviation (RPD) index is applied for comparison. The results of the performance analysis of the proposed MSA show efficiency of the presented algorithm.

Keywords

Scientia Iranica
Volume 21, Issue 6 - Serial Number 6
Transactions on Industrial Engineering (E)
December 2014
Pages 2436-2447

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