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In this paper a new formulation is proposed for project selection problem which considers project interdependencies. Project interdependencies are factored in using the learning curve concept. The problem is modeled as a Mixed Integer Program (MIP) with quadratic constraints. To solve the problem the quadratic constraints are linearized using a new method proposed in this paper and the benefits of this approach compared to the conventional methods are emphasized. The application of this methodology is illustrated using a numerical example. The result shows the superiority of this method in reducing the number of variables dramatically.

A Linearization Approach for Project Selection with Interdependencies in Resource Costs