Multi-mode resource-constrained project scheduling problem with material ordering under bonus–penalty policies
This study emphasizes that project scheduling and material ordering (time and quantity of an order) must be considered simultaneously to minimize the total cost, as setting the material ordering decisions after the project scheduling phase leads to non-optimal solutions. Hence, this paper mathematic...
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| Published in: | TOP Vol. 25; no. 1; pp. 49 - 79 |
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01.04.2017
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| ISSN: | 1134-5764, 1863-8279 |
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| Abstract | This study emphasizes that project scheduling and material ordering (time and quantity of an order) must be considered simultaneously to minimize the total cost, as setting the material ordering decisions after the project scheduling phase leads to non-optimal solutions. Hence, this paper mathematically formulates the model for the multi-mode resource-constrained project scheduling with material ordering (MRCPSMO) problem. In order to be more realistic, bonus and penalty policies are included for the project. The objective function of the model consists of four elements: the material holding cost, the material ordering cost, the bonus paid by the client and the cost of delay in the project completion. Since MRCPSMO is NP-hard, the paper proposes three hybrid meta-heuristic algorithms called PSO-GA, GA-GA and SA-GA to obtain near-optimal solutions. In addition, the design of experiments and Taguchi method is used to tune the algorithms’ parameters. The proposed algorithms consist of two components: an outside search, in which the algorithm searches for the best schedule and mode assignment, and the inside search, which determines the time and quantity of orders of the nonrenewable resources. First, a comparison is made for each individual component with the exact or best solutions available in the literature. Then, a set of standard PROGEN test problems is solved by the proposed hybrid algorithms under fixed CPU time. The results reveal that the PSO-GA algorithm outperforms both GA-GA and SA-GA algorithms and provides good solutions in a reasonable time. |
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| AbstractList | This study emphasizes that project scheduling and material ordering (time and quantity of an order) must be considered simultaneously to minimize the total cost, as setting the material ordering decisions after the project scheduling phase leads to non-optimal solutions. Hence, this paper mathematically formulates the model for the multi-mode resource-constrained project scheduling with material ordering (MRCPSMO) problem. In order to be more realistic, bonus and penalty policies are included for the project. The objective function of the model consists of four elements: the material holding cost, the material ordering cost, the bonus paid by the client and the cost of delay in the project completion. Since MRCPSMO is NP-hard, the paper proposes three hybrid meta-heuristic algorithms called PSO-GA, GA-GA and SA-GA to obtain near-optimal solutions. In addition, the design of experiments and Taguchi method is used to tune the algorithms’ parameters. The proposed algorithms consist of two components: an outside search, in which the algorithm searches for the best schedule and mode assignment, and the inside search, which determines the time and quantity of orders of the nonrenewable resources. First, a comparison is made for each individual component with the exact or best solutions available in the literature. Then, a set of standard PROGEN test problems is solved by the proposed hybrid algorithms under fixed CPU time. The results reveal that the PSO-GA algorithm outperforms both GA-GA and SA-GA algorithms and provides good solutions in a reasonable time. |
| Author | Van Peteghem, Vincent Shahsavar, Aria Zoraghi, Nima Abbasi, Babak |
| Author_xml | – sequence: 1 givenname: Nima surname: Zoraghi fullname: Zoraghi, Nima organization: Faculty of Industrial and Mechanical Engineering, Islamic Azad University – sequence: 2 givenname: Aria surname: Shahsavar fullname: Shahsavar, Aria email: m.shahsavar@ymail.com organization: Faculty of Industrial and Mechanical Engineering, Islamic Azad University – sequence: 3 givenname: Babak surname: Abbasi fullname: Abbasi, Babak organization: School of Business IT and Logistics, RMIT University – sequence: 4 givenname: Vincent surname: Van Peteghem fullname: Van Peteghem, Vincent organization: EDHEC Business School |
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| Keywords | 90-02 Multi-mode resource-constrained Genetic algorithm 90C11 Simulated annealing 90B35 Project scheduling 90B05 Particle swarm optimization Material ordering |
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| SubjectTerms | Algorithms Business and Management Design of experiments Economic Theory/Quantitative Economics/Mathematical Methods Economics Finance Heuristic methods Industrial and Production Engineering Insurance Management Material requirements planning Mathematical models Nonrenewable resources Operations Research/Decision Theory Optimization Original Paper Policies Production scheduling Project management Resource scheduling Statistics for Business Taguchi methods |
| Title | Multi-mode resource-constrained project scheduling problem with material ordering under bonus–penalty policies |
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