Profit optimization for multi-mode repetitive construction project with cash flows using metaheuristics

Abstract

The article presents the profit optimization model for multi-unit construction projects. Such projects constitute a special case of repetitive projects and are common in residential, commercial, and industrial construction projects. Due to the specific character of construction works, schedules of such projects should take into account many different aspects, including durations and costs of construction works, the possibility of selecting alternative execution modes, and specific restrictions (e.g., deadlines for the completion of units imposed by the investor). To solve the NP-hard problem of choosing the order of units’ construction and the best variants of works, the authors used metaheuristic algorithms (simulated annealing and genetic search). The objective function in the presented optimization model was the total profit of the contractor determined on the basis of the mathematical programming model. This model takes into account monthly cash flows subject to direct and indirect costs, penalties for missing deadlines, costs of work group discontinuities, and borrowing losses. The presented problem is very important for maintaining a good financial condition of the enterprise carrying out construction projects. In the article, an experimental analysis of the proposed method of solving the optimization task was carried out in a model that showed high efficiency in obtaining suboptimal solutions. In addition, the operation of the proposed model has been presented on a calculation example. The results obtained in it are fully satisfying.