A Method of Reducing the Cut of Inadmissible Paths as a Tool for Optimizing the Time-Cost of a Project

Abstract

In the literature, many algorithms designed for the time-cost optimization of a project can be found. Usually, this optimization has as the goal of setting certain durations for particular activities pertaining to the project that minimize the project completion time within a specifi ed budget (the so called Budget Problem), or that minimize time-dependent project costs within a specifi ed project deadline (the so called Deadline Problem). Some algorithms are accurate, that is they allow the optimal solution to be obtained, but in general the computations are slow. Whereas other algorithms are heuristic, hence they do not necessarily lead to the best solution, but are less time consuming. Th e procedure proposed in the paper, called the method of reducing the cut of inadmissible paths (SPSN method), allows the problem to be solved directly by minimizing the cost within a given time; and indirectly - the problem of minimizing the time within the available fi nancial resources. It can be used when the unit shortening cost is either fi xed or variable. Th e algorithm for SPSN has already been described in another article; however, this paper presents a more formalized, detailed and comprehensive description of the procedure. Additionally, the author raises some essential issues connected with the computer implementation and eff ectiveness of the algorithm.