A parallel multi-objective scatter search for optimising incentive contract design in projects

L.-P. Kerkhove and Mario Vanhoucke

European Journal of Operational Research, 2017, vol. 261, issue 3, 1066-1084

Abstract: We present a novel optimisation approach for incentive contract design within a project setting. the structure of the remuneration is one of the key challenges faced by the project owner when (s)he decides to hire a contractor. The proposed technique builds on the recently proposed contract design methodology by Kerkhove and Vanhoucke (Omega, 2015). Specifically, a novel multi-objective scatter search heuristic is proposed and implemented using parallelisation. Both single- and multi-population implementations of this heuristic are compared to the original full-factorial approach as well as commercial optimisation software. The results of the computational experiments indicate that the single-population parallel scatter search procedure significantly outperforms the other solution strategies in terms of both speed and solution quality.

Keywords: Project management; Contracting; Multi-objective optimisation; Scatter search; Parallel processing (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:261:y:2017:i:3:p:1066-1084

DOI: 10.1016/j.ejor.2017.02.043

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