Cash-flow optimization in a multi-project environment

Hessamedin Vali, Mehmet Bayram Yildirim, Esra Buyuktahtakin, Don Malzahn

Research output: Contribution to conferencePaperpeer-review

Abstract

In this paper, we address the problem of budget allocation in a multi-project environment under uncertainty. The uncertainty is in the completion time of milestones of individual projects. Companies have the opportunity to invest funds allocated for these projects and also to borrow funds to pay the subcontractors at each milestone for a predetermined amount. The corresponding mathematical model is a linear (dynamic) programming model with stochastic due dates. We propose heuristic methods to solve this problem and compare the performance of these methods with the optimal solution using a simple numerical example.

Original languageEnglish (US)
Pages1628-1636
Number of pages9
StatePublished - Jan 1 2012
Externally publishedYes
Event62nd IIE Annual Conference and Expo 2012 - Orlando, FL, United States
Duration: May 19 2012May 23 2012

Other

Other62nd IIE Annual Conference and Expo 2012
Country/TerritoryUnited States
CityOrlando, FL
Period5/19/125/23/12

All Science Journal Classification (ASJC) codes

  • Industrial and Manufacturing Engineering

Keywords

  • Dynamic programming
  • Modified due dates
  • Multi-project environment
  • Stochastic process

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