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Scheduling and Financial Planning in Stochastic Activity Networks

  • Bajis M. DodinEmail author
  • Abdelghani A. Elimam
Chapter
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Part of the International Series in Operations Research & Management Science book series (ISOR, volume 200)

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 

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Copyright information

© Springer Science+Business Media New York 2014

Authors and Affiliations

  1. 1.The A. Gary Anderson Graduate School of ManagementUniversity of CaliforniaRiverside RiversideUSA
  2. 2.School of Science and Engineering, Mechanical Engineering DepartmentAmerican UniversityCairoEgypt

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