Question

(a) The Director of the Southeastern Anatolia Program (SAP) has been informed that the Program will be provided with relatively large annual budgets for the next T years. The budgets are also stated by the Government as part of a regional development plan. He is asked to generate a set of possible projects extending over several years in consultation with the stakeholders of the SAP and then choose among these projects a subset to implement over the time horizon T. The projects selected do not need to start simultaneously but they are required to finish within the next $T$ years. Each project $i$ has an execution period $D_i$, in general differing over the projects. Some of the projects have various versions out of which at most one is to be selected, if at all. For modeling purposes these versions are treated as individual projects. The annual expenditure for project $i$ can vary depending on which year of its execution the project is in, i.e., if project $i$ has been initiated in year $\mathrm{j}$, then its annual expenditure in year $k \geq j$ is given as $\mathrm{C}_{\mathrm{i}, \mathrm{k}+1-\mathrm{j}}$. Let $a_i$ be the score of project $i$ determined to represent the contribution of project $i$ to the Program; hence, the higher the better. The Director wants to maximize the sum of the scores of all projects implemented. Write down a mathematical programming model for the problem environment stated above. (b) Let us assume that we have solved the above mathematical programming formulation and obtained an optimal solution; in other words, an optimal objective function value $Z^*$, an optimal set of projects to be implemented together with their initiation period. Suggest a methodology for finding an alternative optimal solution, if there exists one.

   (a) The Director of the Southeastern Anatolia Program (SAP) has been informed that the Program will be provided with relatively large annual budgets for the next T years. The budgets are also stated by the Government as part of a regional development plan. He is asked to generate a set of possible projects extending over several years in consultation with the stakeholders of the SAP and then choose among these projects a subset to implement over the time horizon T. The projects selected do not need to start simultaneously but they are required to finish within the next $T$ years. Each project $i$ has an execution period $D_i$, in general differing over the projects. Some of the projects have various versions out of which at most one is to be selected, if at all. For modeling purposes these versions are treated as individual projects. The annual expenditure for project $i$ can vary depending on which year of its execution the project is in, i.e., if project $i$ has been initiated in year $\mathrm{j}$, then its annual expenditure in year $k \geq j$ is given as $\mathrm{C}_{\mathrm{i}, \mathrm{k}+1-\mathrm{j}}$. Let $a_i$ be the score of project $i$ determined to represent the contribution of project $i$ to the Program; hence, the higher the better. The Director wants to maximize the sum of the scores of all projects implemented. Write down a mathematical programming model for the problem environment stated above.
(b) Let us assume that we have solved the above mathematical programming formulation and obtained an optimal solution; in other words, an optimal objective function value $Z^*$, an optimal set of projects to be implemented together with their initiation period. Suggest a methodology for finding an alternative optimal solution, if there exists one.
Show more…
An Introduction to Project Modeling and Planning
An Introduction to Project Modeling and Planning
Gündüz Ulusoy, Öncü… 1st Edition
Chapter 14, Problem 5 ↓

Instant Answer

verified

Step 1

- $T$ be the time horizon in years. - $D_i$ be the execution period of project $i$ in years. - $C_{i,k}$ be the annual expenditure for project $i$ in year $k$. - $a_i$ be the score of project $i$. Decision Variables: - $x_{i,k}$: Binary variable indicating  Show more…

Show all steps

lock
AceChat toggle button
Close icon
Ace pointing down

Please give Ace some feedback

Your feedback will help us improve your experience

Thumb up icon Thumb down icon
Thanks for your feedback!
Profile picture
(a) The Director of the Southeastern Anatolia Program (SAP) has been informed that the Program will be provided with relatively large annual budgets for the next T years. The budgets are also stated by the Government as part of a regional development plan. He is asked to generate a set of possible projects extending over several years in consultation with the stakeholders of the SAP and then choose among these projects a subset to implement over the time horizon T. The projects selected do not need to start simultaneously but they are required to finish within the next $T$ years. Each project $i$ has an execution period $D_i$, in general differing over the projects. Some of the projects have various versions out of which at most one is to be selected, if at all. For modeling purposes these versions are treated as individual projects. The annual expenditure for project $i$ can vary depending on which year of its execution the project is in, i.e., if project $i$ has been initiated in year $\mathrm{j}$, then its annual expenditure in year $k \geq j$ is given as $\mathrm{C}_{\mathrm{i}, \mathrm{k}+1-\mathrm{j}}$. Let $a_i$ be the score of project $i$ determined to represent the contribution of project $i$ to the Program; hence, the higher the better. The Director wants to maximize the sum of the scores of all projects implemented. Write down a mathematical programming model for the problem environment stated above. (b) Let us assume that we have solved the above mathematical programming formulation and obtained an optimal solution; in other words, an optimal objective function value $Z^*$, an optimal set of projects to be implemented together with their initiation period. Suggest a methodology for finding an alternative optimal solution, if there exists one.
Close icon
Play audio
Feedback
Powered by NumerAI
*

Labs

-

Want to see this concept in action?

NEW

Explore this concept interactively to see how it behaves as you change inputs.

View Labs

*

Key Concepts

-
Multi-period Project Scheduling
This concept involves planning and allocating activities that extend over multiple time periods. In this context, projects with different execution durations need to be scheduled within a fixed time horizon, taking into account that each project has a start time and must be completed within the available periods. The scheduling aspect also includes aligning project execution with resource availability and meeting specific deadlines.
Mathematical Programming Formulation
This key concept refers to the process of constructing an optimization model to represent decision-making over time. It encompasses defining decision variables (often binary to capture project selection and start times), an objective function (such as maximization of project scores), and constraints (for budgets, project durations, and exclusive selection among project versions) to capture the relationships and limitations within the problem environment.
Binary and Integer Decision Variables
Binary decision variables are used to model choices such as whether or not to implement a given project, and if so, at which time period. Integer decision variables may also play a role in representing scheduling decisions. These variables are critical in translating the project selection and scheduling problem into a form that can be solved by mixed-integer programming techniques.
Time-indexed Constraints and Budget Limits
This concept deals with modeling constraints that vary over time, such as annual budget limitations. Time-indexed constraints ensure that the expenditures incurred by chosen projects in each period do not exceed the available budget. The formulation needs to account for variable expenditures depending on the execution year of each project, ensuring that the schedule is feasible with respect to resource availability.
Handling Multiple Project Versions
Some projects may have alternate versions, where at most one version can be selected. This concept involves modeling the mutual exclusivity of project variants so that the decision-making process respects the constraint that no more than one version of a multi-option project is implemented. It requires careful formulation to prevent overlapping or conflicting selections among alternate project designs.
Alternative Optimal Solutions and Postoptimality Analysis
Once an optimal solution is obtained, it is valuable to investigate if other solutions exist that achieve the same optimal objective value. This concept involves the methodology of postoptimality analysis, where additional criteria, sensitivity analysis, or enumeration techniques (such as manipulating constraints to force different combinations) are applied to uncover possible alternative schedules. This analysis aids in understanding the flexibility and robustness of the optimal solution.

*

Recommended Videos

-
infocomp-system-lab-is-a-research-and-development-rd-company-that-develops-computer-systems-and-software-primarily-for-the-medical-industry-the-lab-has-proposals-from-its-own-researchers-for-05469

Infocomp System Lab is a research and development (R&D) company that develops computer systems and software primarily for the medical industry. The lab has proposals from its own researchers for eight new projects. Each of the proposed research projects requires limited resources, and it is not possible to undertake all of them. The following table shows the developmental budget, the number of researchers, and the expected annual sales from each project if successfully developed and implemented: Project Developmental Budget ($1,000,000s) Number of Research Personnel Expected Annual Sales ($1,000,000s) 1 0.675 6 0.82 2 1.050 5 1.75 3 0.725 7 1.60 4 0.430 8 1.90 5 1.240 10 0.93 6 0.890 6 1.70 7 1.620 7 1.30 8 1.200 6 1.80 The lab has developed the following set of prioritized goals for selecting which projects to initiate: P1. The company would like to remain within a total development budget of $5,000,000. P2. The number of available research personnel is 27, and Infocomp would like to avoid obtaining extra researchers. P3. The company would like the expected future annual sales from the implemented projects to be at least $6,500,000. P4. Projects 1, 3, 4, and 6 are considered offensive in that they represent new product initiatives, while projects 2, 5, 7, and 8 are existing product upgrades and thus defensive in nature. The lab would like to select at least two projects from each group (i.e. the offensive group and the defensive group). P5. Projects 2, 3, 5, 6, and 7 are considered the riskiest of the projects, and the company would prefer not to select any more than three of these projects. P6. The lab's owner has indicated that she would like to see projects 5 and 6 initiated if doing so would not interfere with the achievement of any of the more important goals determined by the lab's top management. Solve this problem using the Goal Programming model. What are the final decisions? Which goals are not satisfied? If we prioritize the owner's preference (i.e. solve for the lab owner's goal first, then the others: in the order of P6-P1-P2-P3-P4-P5), then which goals are not satisfied? Are the decisions the same?

Need help? Use Ace
Ace is your personal tutor. It breaks down any question with clear steps so you can learn.
Start Using Ace
Ace is your personal tutor for learning
Step-by-step explanations
Instant summaries
Summarize YouTube videos
Understand textbook images or PDFs
Study tools like quizzes and flashcards
Listen to your notes as a podcast
Continue solving this problem
Create a free account to:
  • View full step-by-step solution
  • Ask follow-up questions with Ace AI
  • Save progress and study later
Continue Free
Numerade

Get step-by-step video solution
from top educators

Continue with Clever
or



By creating an account, you agree to the Terms of Service and Privacy Policy
Already have an account? Log In

A free answer
just for you

Watch the video solution with this free unlock.

Numerade

Log in to watch this video
...and 100,000,000 more!


EMAIL

PASSWORD

OR
Continue with Clever