The objective of this research was to schedule project activities based on maximum net present value (NPV) and minimum duration. A new hybrid heuristic based on the combination of minimum late start (MLS) and shortest processing time (SPT) priority-rules heuristics was developed. The new late start and shortest processing time (LSSPT) heuristic was tested using 60 problems of the Patterson set, and results compared with 4 other heuristics. To test all 5 previous heuristics, 5 computer programs were developed. Statistical analysis was performed. Results indicate that the new heuristic produced better and encouraging results.
BaroumS.M., & PattersonJ.H. (1996). The development of cash flow weight procedures for maximizing the net present value of a project.Journal of Operation Management, 14, 209–227.
DavisE.W., & PattersonJ.H. (1975). A comparison of heuristic and optimum solutions in resource—Constrained project scheduling.Management Science, 21, 944–955.
4.
HerroelenW., Van DommelenP., & DemeulemeesterE.L. (1997). Project network models with discounted cash flows: A guided tour through recent developments.European Journal of Operation Research, 100, 97–121.
5.
PattersonJ.H. (1984). A comparison of exact approaches for solving the multiple constrained resource, project scheduling problem.Management Science, 30(7), 854–867.
6.
PinderJ.P., & MarucheckA. (1996). Using discounted cash flow heuristics to improve project net present value.Journal of Operation Management, 14, 229–240.
7.
RussellR.A. (1986). A comparison of heuristics for scheduling projects with cash flows and resource restrictions.Management Science, 32(10), 1291–1300.
8.
Smith-DanielsD.E., & AquilanoN.J. (1987). Using a late-start resource-constrained project schedule to improve project net present value.Decision Sciences, 18(4), 617–630.
9.
WalpoleR.E., & MyersR.H. (1993). Probability and statistics for engineers and scientists.Maxwell MacMillan International Edition.
