Minimizing the Expected Renewable Resource Costs in a Project with Stochastic Resource Availability

Hossein Moghaddaszadeh (), Mohammad Ranjbar and Negin Jamili ()
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Hossein Moghaddaszadeh: Department of Industrial Engineering, Faculty of Engineering, Ferdowsi, University of Mashhad, Iran
Mohammad Ranjbar: Department of Industrial Engineering, Faculty of Engineering, Ferdowsi, University of Mashhad, Iran
Negin Jamili: Rotterdam School of Management, Erasmus University, Netherlands

Asia-Pacific Journal of Operational Research (APJOR), 2024, vol. 41, issue 01, 1-29

Abstract: In this paper, we study the well-known resource availability cost problem with stochastic resource availability. The objective is to determine the initial levels of all renewable resources and establish a schedule corresponding to each scenario such that the expected resource availability cost is minimized. We assume that resource shortfalls can be compensated externally but at a noticeable higher cost. We formulate the problem as a two-stage stochastic programming model (TSSPM). We also develop an exact decomposition-based algorithm (DBA) for the particular case of the problem with at most two resources, which also functions as a heuristic for the original problem. Since the number of scenarios influences the performance of the developed solution approaches, we utilize a fast scenario reduction method to reduce the number of scenarios. Computational results indicate that the DBA outperforms the TSSPM formulation in solution quality and CPU runtime.

Keywords: Project scheduling; resource availability cost problem; two-stage stochastic programming (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1142/S0217595923500082

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