Multi-mode capital-constrained project payment scheduling problem with Discounted Cash Flows

Document Type: Original Article

Authors

1 MSc Graduate of Industrial Engineering at the Dept. of Socio-economic Systems, Faculty of Industrial & Systems Engineering, Tarbiat Modares University, Tehran, Iran.

2 Professor of Industrial Engineering at the Dept. of I.E., Faculty of Industrial & Systems Engineering, Tarbiat Modares University,Tehran, Iran.

3 Associate Professor of Industrial Engineering, Dept. of I.E., Faculty of Industrial & Systems Engineering, Tarbiat Modares University, Tehran, Iran.

4 MSc Graduate of Information Technology Engineering at the Dept. of I.T., Faculty of Industrial & Systems Engineering, Tarbiat Modares University, Tehran, Iran.

Abstract

Project scheduling is to determine the start time of each project activity, due to the constraints contained in it then determine a timing sequence to perform a series of related activities according to their precedence.
So that there is a balance between time completion and total cost of the project and it is to achieve one or more objectives. To achieve these objectives, the options examined and finally, the best option is selected. Despite numerous research on schedule projects, there is lacking in the area of project scheduling with considering financial goals that these problems can be relieved with a good estimation of the costs and expected income. Therefore, in this study, we intend to develop a model for scheduling project performance purposes, including time, cost and financial (income, payment, etc.) with the aim of maximizing profits by right setting of the resources and activities and creating of the optimum cash flow program to prevent financial failure of the project. Where the resources used to implement activities and project incomes represent negative and positive cash flow respectively. As well as various financial factors such as interest rates, payment terms and credit limits not only effect on the cash flow of the project, but the amount and timing of resources affects too.

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