A Multi-Objective Resource-Constrained Optimization of Time-Cost Trade-Off Problems in Scheduling Project
A Multi-Objective Resource-Constrained Optimization of Time-Cost Trade-Off Problems in Scheduling Project
ir/
Vol. 8, No. 4, October 2015 Print ISSN: 2008-7055
pp: 653-685 Online ISSN: 2345-3745
Abstract
This paper presents a multi-objective resource-constrained project scheduling
problem with positive and negative cash flows. The net present value (NPV)
maximization and making span minimization are this study objectives. And since
this problem is considered as complex optimization in NP-Hard context, we present
a mathematical model for the given problem and solve three evolutionary
algorithms; NSGA-II, MOSA and MOPSO are applied to find the set of Pareto
solutions for this multi-objective scheduling problem. In order to show performance
of the algorithms, different metrics are applied and comparisons between the two
algorithms are also considered. The computational results for a set of test problems
taken from the project scheduling problem Bandar Abbas Gas condensate Refinery
project and library are presented and discussed. Finally, the computational results
illustrate the superior performance of the NSGA-II, MOSA and MOPSO algorithm
with regard to the proposed metrics. In order to solve proposed method from NSGA-
II algorithm, the results are compared with GAMS software in some problems. The
proposed method is a Converge to the optimum and efficient solution algorithm.
Keywords
Comparative indicators of evolutionary algorithms, MOSA and MOPSO algorithm,
NSGA-II, Payment patterns, Project scheduling, Resource constraints.
Introduction
Resource-constraint project scheduling problem (RCPSP) is a class of
project scheduling that one’s activities should be scheduled subject to
precedence and resource constraints and it is proven to be NP-hard
(Aboutalebi1 et al., 2012). Minimization of project duration is often
used as an objective of a general project scheduling problem while
other objectives such as Maximizing of net present value of cash
flows, and leveling of resource usage are also considered. Resources
involved in a project can be single or multiple varieties, and can be
renewable or nonrenewable (Ritwik & Paul, 2013). The time–cost
tradeoff problem in project management originates when activity time
can be reduced with some extra direct cost (Jongyul et al., 2012).
Time Cost Trade off analysis is the compression of the project
schedule to achieve a more favorable outcome in terms of project
duration, cost, and projected revenues. The objectives of the Time
Cost Trade off analysis are compressing the project to the optimum
duration which minimizes the total project cost (Rifat & Önder Halis,
2012).
Another important type of objective emerges if cash flows occur while
the project is carried out. Cash outflows are induced by the execution
of activities and the usage of resources. On the other hand, cash
inflows result from payments due to the completion of specified parts
of the project. Typically, discount rates are also included. Note that
cash flows related to activity j might occur at several points in time
during execution of j. However, they can easily be compounded to a
single cash flow at the beginning or the end of j. These considerations
result in problems with the objective to maximize the net present
value (NPV) of the project which subject to the standard RCPSP
constraints (Shu-Shun & Chang-Jung, 2008). Project payment
scheduling problem involves how to schedule progress payments
effectively including the amount, time or spots (i.e. the key activities
or events associated with payments), and so on of payments in the
project so as to maximize the profits of the contractor or/and the
client.
A multi-objective resource-constrained optimization of time-cost trade-off … 655
In real life situations, there are at least two parties involved in the
project: the client, who is the owner of the project, and the contractor,
whose job is to execute the project. They have to agree with the
method of payment transferring from the client to the contractor for
the execution of the project. The ideal situation for the client would be
a single payment at the end of the project. The contractor, on the other
hand, would like to receive the whole payment at the beginning of the
project (Zhengwen & Yu, 2008). Time-Cost optimization (TCO)
problem has been extensively examined by a number of research
studies. Various approaches have been proposed for optimizing
construction time and cost including (1) heuristic methods (Moselhi,
1993; Siemens, 1971); (2) mathematical programming (Liu et al.,
1995; Moussourakis & Haksever, 2004); and (3) meta-heuristic
methods. Mathematical programming such as linear programming is
suitable for problems with linear time-cost relationships, but they
often fail to solve the problem with discrete time-cost relationships
(Feng et al., 1997). Moreover, it requires a lot of computational efforts
to solve a large scale project network. Heuristic methods are able to
overcome such limitation of a large scale problem, but fail to
guarantee optimal solutions. Therefore, many research studies have
focused on utilizing meta-heuristic methods in time-cost tradeoff
analysis to overcome the limitation of heuristic methods and
mathematical programming.
Liu et al. (1995) have developed optimization model using a hybrid
method that integrates linear and integer programming. Linear
programming was used to find lower bounds of the solutions, and then
integer programming was used to obtain the exact solution. The
integer programming was then used to minimize total project cost with
the constraints of activity precedence and the selection of a single
resource utilization option for each activity. The hybrid model was
developed using Microsoft Excel to provide a construction planner
with an efficient means of analyzing time-cost trade-off decisions.
Zheng et al. (2005) have developed GA-based multi-objective
optimization model that simultaneously minimizes time and cost. In
order to overcome the problem of genetic drift, the model utilized
656 (IJMS) Vol. 8, No. 4, October 2015
minimize the NPV while the contractor aims at maximizing it. The
objective in Ulusoy and Cebelli (2000) is to find the payment structure
which minimizes each party’s loss in comparison to the respective
ideal payment structure. Dayanand and Padman (2001) treat a similar
problem, but restrict themselves to the client’s point of view. The
client might associate a specific value with each event (starting or
completion of a job). Cash outflows can be assigned to each event
having a positive value. The problem is to find a project schedule and
decide cash outflows to happen at a given number of events.
The total outflow might exceed the total value of finished activities
at no point of time. The objective is to find a solution such that
discounted cash inflow (associated with finishing the project) minus
total discounted cash outflow will maximize. Dorner et al. (2008)
employ three objectives within a variant of the time-cost tradeoff
problem. The first objective is a function of the project make span,
while the second and the third are functions of the monetary and non-
monetary costs for crashing the activities, respectively. Afshar et al.
(2009) proposed Non-dominated Archiving ACO (NA-ACO)
algorithm in which all ant colonies are initiated by the same number of
ants, and arbitrary order is given to the colonies. Ants in a certain
colony simultaneously explore a solution according to the objective
assigned to that colony. If there is an improvement, the optimal path is
updated. The progress payment model corresponds to what Dayanand
and Padman (1998) refer to as the periodic payment model. Dayanand
and Padman provide mixed integer linear programming formulations
for the so-called basic client, equal time intervals and periodic
payment models. They provide insights about the characteristics of
optimal payment schedules obtained with each model. Kim et al.
(2012) present an improved genetic algorithm to solve a multi-mode
resource-constrained discrete time–cost tradeoff problem; which is
applicable to special knowledge intensive projects, and does not
consider project activities' quality.
Zhou (2011) has used ant colony algorithm to trade-off costs and
time. The problem is considered as a multimode discrete and the
objective function as the sum of the direct and indirect costs which
658 (IJMS) Vol. 8, No. 4, October 2015
st :
LFj LFj
tx jt (t d j ) x jt j ,w p j
t EF j t EF j
(3)
LFj
Cj tX
t EF j
jt j 1,2,..., n (4)
n
T max( d j ) (6)
j 1
C max T (7)
n t d j 1
rjk
j 1
X
b t
jb Rk ,k ,t (8)
ES1 0 (9)
y
j 1
jk 1, k 1,2,..., k 1 (13)
k
y
k 1
jk 1, j 1,2,..., n (14)
k
P
k 1
k u , k 1,2,..., k (15)
Pk 0, k 1,2,..., k (16)
no activity can start before the end of all its prerequisite activities, and
on the other hand, projects activities are continuous. Constraints (11)
show that j the activity start time is equal or larger than its prerequisite
activities end time. Constraints (12) show that 0 and n+1 activity are
virtual activities. Constraints (13) shows number of payments K for
certain event m. constraint (14) ensures that one payment is allocated
at the end of event. Constraint (15) ensures that summations of all
payments are equal to project contractor price. Constraint (16) also
shows that payments values always are positive.
In real life situations, there are at least two parties involved in the
project: the client, that is, the owner of the project and the contractor
who undertakes the execution of the project. The legal basis of the
execution of a project is provided by a contract organizing aspects of
the interactions between the stakeholders. There are a large number of
contract types with considerable amount of detail involved. A treatise
of different contract types is given by Herroelen et al. (1997). For the
purposes of this paper, we are interested in the basic payment
structures specified in the contracts. Four types of payment scheduling
models are of particular interest in practice: Lump-sum payment,
payment at event occurrences, payment at equal time intervals, and
progress payment.
Lump-sum payment (LSP) is one of the more commonly used
payment structures in the literature. Here, the whole payment is paid
by the client to the contractor upon successful termination of the
project (Seifi & Tavakkoli-Moghaddam, 2008). The LSP model
represents the ideal situation for the client––he makes a single
payment to the contractor only at the end of the project. However, in
general, this shifts the entire financial burden on the contractor, which
may not be acceptable in some project environments (Marek et al.,
2005).
LFj Mj
n CF jm
maxz CFlsp (1 ) FTn
X jmt
i 1 t EFi m 1 (1 ) t
(17)
n
CFlsp CF
j
j1
A multi-objective resource-constrained optimization of time-cost trade-off … 663
H 1 n LFj M j
CF jm
maxz ( Pp (1 i ) PT PH (1 i ) _ FTn ) X jmt (20)
P 1 j 1 t EFi m1 (1 ) t
(cf. Elmaghraby, 1977) from an upper bound of the project's finish time T
(Möhring & Stork, 2000).
NSGA-II methodology
The NSGA-II algorithm is the first and one of the commonly used
evolutionary multi-objective optimization (EMO) algorithms which
search for solution space to find Pareto-optimal solutions in a multi
objective optimization problem. NSGA-II uses the elitist principle and
an explicit diversity preserving mechanism. In addition, it emphasizes
non-dominated solutions, and forms the Pareto front as Pareto-optimal
solutions. The NSGA-II algorithm uses two effective strategies
including an elite-preserving and an explicit diversity-preserving.
NSGA-II uses an explicit diversity-preservation or niching strategy to
assign a diversity rank to all the individuals that are in the same non-
dominated front and thus have the same non-dominated rank in the
population. The members within each non-dominated front that are in
the least crowded region in that front are assigned a higher rank. For
calculating the density of solutions surrounding a particular solution in
the population, a crowding distance metric is used that is achieved
from the average distance of the two solutions on either side of the
solution along each of the objectives. Respecting that this particular
niching strategy does not require any external parameters; therefore, it
was chosen for NSGA II. Details can be found elsewhere. Because of
the nature of the models of the multi-objective optimization problems,
non-dominated sorting genetic algorithm (NSGA) can be used to find
the non-dominant optimal solutions. In the absence of any additional
information about multi-objective optimization problem, one of these
Pareto-optimal solutions cannot be considered as better solution than
the others. Superiority and Suitability of one solution over the others
depends on several factors including user’s choice and problem
environment. Therefore, the NSGA II determines a set of dominant
solution and as a result Pareto front is obtained (Salimi et al., 2013).
Initial population for NSGA-II algorithm
Initial individuals are obtained by fixing the activities modes
666 (IJMS) Vol. 8, No. 4, October 2015
point and by moving their sequence, we produce two new child. Then
in two point Crossover we select two different random number in [0,
N-1] interval and we break both generator in these two points and by
moving points between two parts of both generators, we produce two
child and then in unified intersection we produce two random numbers
like V in [0, 1] interval and if V≤pc (in proposed algorithm is equal to
0.9), xi chromosome is selected as a parent in Crossover operation.
Then, we reach the number of (pop-size) pc parents for Crossover
operation. We number them again from the start and specify them by
prime sign as ( ). In the next phase, if we want to have an
Crossover between two parents like ,
, we must first produce a random number in
[0, 1] interval and then do the intersection operation by using the
following equation which are new chromosome and named as child
chromosome and are signed by ". If both Childs are feasible, then we
replace parents with them. If one of the parents is possible then we
keep that and repeat Crossover operations to reach another possible
child. If both of them are not possible, we repeat the operation to two
possible childe.
Mutation operator
pm Parameter is considered as probability of mutation. Parent
chromosome is selected by the same method which was mentioned in
intersection operations. Parent chromosome is selected which is
almost as many as . Then mutation operation is
applied as the following method. In this research, gussing method is
used for producing mutants that for X variables which is and
, new variable must have normal distribution with zero mean and
variance. That and . This means that a
standard value is produced and multiplied by and summed by X
value and is equal to . Which is equal to
mutation steps. Therefore, mu% (mutation ratio) is selected randomly
and to have an integer value for mutants and at least one case may be
found, value is rounded up.
668 (IJMS) Vol. 8, No. 4, October 2015
Computational Results
Proposed method presented in this research is coded by using multi
objective genetic algorithm which proposed in MATLAB software. In
this part, input parameters which consider general and control
variables are presented and results of proposed algorithm solving are
discussed and the proposed multi objective genetic algorithm is
validated by GAMS. In Table 5, required information for Bandar
Abbas Gas Condensate Refinery Construction Project including
activities time, prerequisite relations, required resources for activities,
and positive and negative financial flows for activities. In this project,
it is assumed that there is no limit in non-renewable resources and
maximum values of these resources are as follow: human resources
equal to 150 (R1=150) and 100 unite machinery (R2=100).
A multi-objective resource-constrained optimization of time-cost trade-off … 673
(d i d mean )
(21)
S i 1
( N 1)d mean
distance between the adjacent solutions. S=0 means that all solutions
of the Pareto Front are equally spaced. Hence, values of S near zero
are preferred (Kashif Gill et al., 2006).
Maximum Spread (MS): it was proposed by Zitzler et al. (2000)
and evaluates the maximum extension covered by the non-dominated
solutions in the Pareto Front. MS is computed by using as follows.
m
D (max f
j 1
i
j
min f i j )2 (22)
The main problem that tables and the selected sample problems
with 10, 18, 20 and 25 activity tables represent are the following
topics:
NSGA-II algorithms have a greater ability to achieving higher
number of answers in Pareto front, that from this perspective,
678 (IJMS) Vol. 8, No. 4, October 2015
Table 11. Percentage Average difference between Results from GAMS software and NSGA-II
Type of payment LSP PEO ETI PP
Problem Cmax NPV Cmax NPV Cmax NPV Cmax NPV
J=10 7.1 0.15 7.1 2.2 0 0 0 1.28
J=14 2.4 0.25 2.4 0.006 2.4 0.18 4.8 0.27
J=18 1.6 0.44 0.53 0.097 4.8 0.74 0.53 0.21
J=20 1.5 0.36 1.5 0.07 3.1 0.09 4.7 8.8
J=25 3.7 0.26 3.1 0.06 4.6 0.11 1.5 3.3
The average
3.7 0.29 2.95 0.5 3 0.22 2.33 2.27
percentage difference
Table 12. implementation time from the GAMS software and NSGA-II
Problem J=10 J=14 J=18 J=20 J=25 J=35
NSGA-II 228.76 252.48 282.55 265.6 327.09 707.15
GAMS 414.31 923.63 2475.43 3627.94 5162.57 -
Fig. 1. Time of sample problems solving in the proposed NSGA-II algorithm and GAMS software
680 (IJMS) Vol. 8, No. 4, October 2015
Conclusion
In this research, the scheduling section limited portion of the
construction of a refinery by using a meta-heuristic approach
investigated. The objectives of this model have been considered,
minimizing project completion time and maximizing the net present
value of the project. Also, the major Constraints and multi-objective
model and Computational time complexity are classified as in the
group NP-Hard problems. Therefore, in this paper, NSGA-II, MOPSO
and MOSA algorithms are used in order to achieve optimal
scheduling. Since every algorithm must be validated before use, the
current study is applied for a real project which is progressive; we
cannot also compare algorithm results with project results; therefore,
to prove efficiency of the algorithm, the algorithm results are
compared with results of solving the problem which is solved by
GAMS software for some problems in small scales. Results represent
that they are almost similar and smaller than 3%. Also, time to reach a
solution in proposed method is constant, but in GAMS software
increases as quadratic function. These results show that the proposed
method is a convergence algorithm to optimal and efficient solution.
The results of the NSGA-II, MOPSO and MOSA algorithm were
investigated with comparative indices. The results of the NSGA-II,
MOPSO and MOSA algorithm for the main problem and sample
problems Indicates NSGA-II algorithm in the different criteria, have
performed better than the other algorithms. For example, the NSGA-II
algorithm in the number of Pareto solutions in problems all have been
more of MOPSO, and MOSA algorithm provides more options for
the decision makers. In the diversity, Maximum Spread (MS) and
Spacing (S) index in the overwhelming of cases performed better than
the other algorithms that Indicates are considered the extent and
greater distribution of response space and uniformity between the
solutions.
Suggestion that can be implemented in process of the project:
Considering other objectives, such as robust, resources leveling,
and project quality in the objective function
A multi-objective resource-constrained optimization of time-cost trade-off … 681
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