TY - GEN

T1 - Towards a model for selection and scheduling of risky projects

AU - Sefair, Jorge A.

AU - Medaglia, Andrés L.

PY - 2005/1/1

Y1 - 2005/1/1

N2 - The planning process of public and private companies relies on optimal project selection and scheduling and the efficient allocation of scarce resources. This process is complicated due in part to the fact that project investment must consider multiple criteria, project cash flows are uncertain, and there are several operational business and technical constraints. The proposed mixed-integer programming model assists the planning manager/analyst by choosing from a bank of projects in which projects to invest and when to invest. The model maximizes the sum of net present values of the chosen projects while minimizing their variance. The model satisfies simultaneously a set of precedence relations among projects; early and tardy project starting dates; exogenous budget limits; and endogenous project cash flow generation. Finally, by quantifying the opportunity cost, the model shows how arbitrary project selection and sequencing can reflect non-desirable solutions for the company and the society.

AB - The planning process of public and private companies relies on optimal project selection and scheduling and the efficient allocation of scarce resources. This process is complicated due in part to the fact that project investment must consider multiple criteria, project cash flows are uncertain, and there are several operational business and technical constraints. The proposed mixed-integer programming model assists the planning manager/analyst by choosing from a bank of projects in which projects to invest and when to invest. The model maximizes the sum of net present values of the chosen projects while minimizing their variance. The model satisfies simultaneously a set of precedence relations among projects; early and tardy project starting dates; exogenous budget limits; and endogenous project cash flow generation. Finally, by quantifying the opportunity cost, the model shows how arbitrary project selection and sequencing can reflect non-desirable solutions for the company and the society.

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M3 - Conference contribution

AN - SCOPUS:33745470516

SN - 0974455946

SN - 9780974455945

T3 - Proceedings of the 2005 IEEE Systems and Information Engineering Design Symposium

SP - 158

EP - 164

BT - Proceedings of the 2005 IEEE Systems and Information Engineering Design Symposium

PB - IEEE Computer Society

T2 - 2005 IEEE Systems and Information Engineering Design Symposium

Y2 - 29 April 2005 through 29 April 2005

ER -