Scheduling and Financial Planning in Stochastic Activity Networks

Bajis M. Dodin () and Abdelghani A. Elimam ()
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Bajis M. Dodin: University of California
Abdelghani A. Elimam: American University

Chapter 8 in Essays in Production, Project Planning and Scheduling, 2014, pp 183-201 from Springer

Abstract: Abstract Stochastic Activity Networks (SANs) deal with projects where the required duration or resources for some or all activities are given as random variables characterized by their own probability distribution functions (pdfs). Managing a SAN project requires dealing with several important issues. One of the primary issues is the determination of the optimal project financial plan for a selected planned budget (PB) and the corresponding project schedule and completion time. In this chapter, we analyze the impact of the stochastic variations of the renewable and nonrenewable resources required by each activity on the cost and the duration of the project. The investigation resulted in developing an analytical approach for determining the probability density functions of the project cost and duration that can be used in financial planning and scheduling of stochastic projects. A linear programming model was also developed to distribute the resulting project budget over its activities while minimizing the overall project completion time. An example SAN project is provided to illustrate the validity and merit of the approach.

Keywords: Project Scheduling; Financial Planning; Probability Distribution Function; Duration; Linear Programming; Convolutions (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:spr:isochp:978-1-4614-9056-2_8

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DOI: 10.1007/978-1-4614-9056-2_8

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