Note—Project Selection and Sequencing to Maximize Net Present Value of the Total Return
Author(s) -
Sushil K. Gupta,
Jerzy Kyparisis,
Chi-Ming Ip
Publication year - 1992
Publication title -
management science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.954
H-Index - 255
eISSN - 1526-5501
pISSN - 0025-1909
DOI - 10.1287/mnsc.38.5.751
Subject(s) - net present value , selection (genetic algorithm) , sequence (biology) , mathematical optimization , dynamic programming , computer science , present value , value (mathematics) , net (polyhedron) , operations research , mathematics , economics , artificial intelligence , microeconomics , machine learning , production (economics) , finance , geometry , biology , genetics
This note considers a problem of simultaneous selection of a subset of N projects and determination of an optimal sequence to implement these projects so as to maximize the net present value of the total return. We first establish an optimal sequence of all projects which does not depend on the particular subset of selected projects and then propose an efficient polynomial dynamic programming method for solving the problem.project selection, sequencing/scheduling, dynamic programming
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