Cost Optimization of Time Schedules for Project Management

Abstract

The paper presents the cost optimization of the time schedules for project management. The nonlinear programming (NLP) model for the cost optimization of the time schedules under the generalized precedence relations between the project activities was developed and applied. The existing NLP optimization models have focused on the cost optimal solution of the project scheduling problems which include simplifying assumptions regarding the precedence relationships among the project activities. In this way, this research work aims to propose the NLP optimization model for making optimal time-cost decisions applicable to actual projects in project management. The generalized reduced-gradient method was used for the NLP optimization. The obtained results include the minimum total cost project schedules and the optimal project time-cost curves. The proposed optimization approach enables the insight into the interdependence between the project duration and the total project cost. The decision-maker can more effectively estimate the effect of the project deadline on a total project cost before the submission of a tender. An application example and an example of the time-cost trade-off analysis are presented in the paper to demonstrate the advantages of the proposed approach.